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Finding attractive properties can be a major headache. While the Multiple Listing Service (MLS) can provide you with a seemingly never-ending catalog of properties ready to be invested in, you may not realize that the MLS doesn’t account for every available property. Off-market listings may feel ‘out of sight, out of mind,’ but they can be amazing opportunities if you can find them.
While many are technically “for sale”, they may not be so in the traditional sense we are familiar with. Oftentimes a listing broker hasn’t submitted a specific property to be advertised on the MLS (or other similar portals) and therefore the property’s availability becomes known by word of mouth or networking, not by public advertising.
But how do you come across them?
The following tips can make it easier for you to scout out these hidden gems and create newfound investment opportunities for expanding your portfolio.
Connecting with anyone and everyone in the real estate industry can pay huge dividends – it is arguably the best lead generation strategy in the real estate world, and particularly when concerning off-market properties.
The power of social media and today’s digital landscape has made our communities that much smaller. Look up local real estate events and find groups that meet to discuss all industry-related topics. Being clued in to get a pulse on the industry is now easier than ever and there’s no reason why you shouldn’t take advantage of all the social platforms that are bringing industry professionals together.
Scanning public records for off-market properties may seem counterintuitive, but in reality the opposite is true. After all, just because they haven’t been listed on the MLS doesn’t mean they don’t exist. Public records often feature pre-foreclosure or short sale properties, both of which can offer prime investment opportunities. State and local government websites, as well as newspapers (both print and digital), are all excellent resources to find off-market deals before they may even hit any listing.
Real estate auctions
Auctions often provide investors with a steady stream of off-market properties to choose from, most of which can be found online through auction websites (RealtyTrac or auction.com are great resources). Similar tos canning public records, you’ll find two main types of properties at auctions:foreclosures and real estate owned (REO) properties (those that are often the result of an unsuccessful foreclosure auction). Of course, once you’ve found a property, confirmed its status, and understood the bidding procedure, do your homework as the investor. Research the neighborhood and property’s history and have a clear plan for what you want to do with it.
At its core, wholesaling consists of finding a discounted property, putting it under contract, assigning it to a potential buyer, and charging the new buyer a fee. Often, the properties handled by wholesalers are off-market. Connecting with good wholesalers can do wonders for your portfolio as they are often very dialed into what’s happening in the local market.
It’s worth noting that working with a wholesaler is like working with a middleman and that means you’re likely to get a worse deal than if going directly to the source. At the very least, networking with wholesalers will give you the opportunity to stay in the loop and become more familiar with the local industry.
Shopping for off-market properties can provide various benefits for investors, namely things like unique opportunities, lower sale prices, and less competition for buyers. With the right property, you can find yourself with wide profit margins.
Seeking new ways to strategize your real estate investment goals is the key to success, and if you’re ready to discuss your financing opportunities for your next project, contact Temple View today.