How to Find Off-Market Properties for Investment Deals
The popularity of real estate investment continues to increase, with both professional investors and so-called “Mom and Pop” landlords and flippers competing to find suitable properties.
While regular realtor listings lean towards listings that attract those looking for a house to call home, the real gems are often off-market real estate investing properties.
Off-market means that the property isn’t obviously available for sale and isn’t listed on the Multiple Listing Service (MLS). Such sales account for around 10% of property transactions, according to the National Association of Realtors.
So, how do you find them?
For the brand-new investor, this is going to take a bit of work. You’ll be competing against the big boys who’ve already got a dedicated system in place, working with realtors, wholesalers, and contacts who’ll tip them off about potential properties.
But… There are many ways around this. Some of which are quite effortless to put into action and others that require rather more of your time.
7 Ways to Boost Your Off-Market Real Estate Investing Success
Let’s look at the time-heavy off-market search first.
1. Driving for dollars
This involves, quite simply, driving around an area to look for a potential acquisition. Look for run-down, unkempt, and visibly un-cared-for homes. You know, overgrown grass, boarded-up windows, car wrecks littering the yard, and other obvious signs that this is not a property that’s cherished and ready for a new owner to live their best life.
Once you’ve pinpointed one (or a few), then it’s all about making contact. If you’re feeling ballsy, you can rock up, knock on the door, and put forward your proposition. The more introverted might prefer to slip a note through the door with your contact details for them to get in touch if they’re interested.
Abandoned properties are a little more challenging. You might need to do some record searching, such as local government or property tax records, to find the owner.
2. Search through public records
This can be an effective, if tedious, method of finding properties that have been put up for sale but failed to find a buyer. It can also give you a heads-up on real estate in probate or foreclosure.
Again, once you’ve found your mark, it’s time to get in contact and persuade the vendor why they should take your money…
3. Directly market in your chosen area
Many people are open to the idea of selling without actively putting their property up for sale. Pick your area, determine suitable properties, and then either go door-to-door—which can be soul-destroying, depending on your outlook—or create an enticing mailer that you drop through the door.
While this method might not bring immediate results, although stranger things have happened, you’ll likely generate some potential leads from homeowners who show some interest. Just be sure that you document to follow up in a timely manner.
4. Network and cultivate relationships
Again, this takes time. But if you’re serious about off-market real estate investment then this is hugely important. From taking part in online discussions to face-to-face events, cozying up to realtors to telling everyone you know that you’re interested in purchasing properties, building up a network should be high on your list of priorities.
The following are rather more convenient and not so time-intensive. While that’s great, it also means that more people use these methods, so competition can be fierce.
5. Join a local real estate investing association
Not only can this throw up opportunities that you’d otherwise never know about, but it also adds value to number four on our list—building your network. It also means rubbing shoulders with those in a similar situation. Rather than thinking of them as the opposition, use these opportunities to discover how others have successfully made money or built their property portfolios.
6. Use online tools
Like Zillow and real estate auction sites. Foreclosures, bank-owned, and short sales are often advertised through such sites. Don’t discount social media either. There are a bunch of Facebook (for example) groups where such properties are listed and shared.
7. Contact real estate agents and property management companies
As industry experts, they have a unique insight into property in their local area. Realtors know about upcoming listings before they become public, might have wind of purchases that are about to fall through, and other exclusivity that might mean you can get in first on a potential deal. Property management companies can let you know about upcoming landlord sales and maybe even facilitate an introduction.
The most important thing about finding and buying off-market property for investment is that you can move fast. Once you’ve drilled down your deal, you need to be able to proceed. Therefore, having the funds in place before you start your search is crucial.
That’s where BRRRR Loans can help. We offer highly competitive funding specifically for real estate investors. Discover more about how you can easily purchase your next investment at
Buy, Rehab, Rent, Refinance, & Repeat. A nationwide direct lender to real estate investors. If you have a project that needs to be funded, you’ve come to the right place.