Savvy buyers know that finding properties with the highest return on investment potential often means researching and finding off-market deals. If you’ve been thinking about joining the ranks of investors taking advantage of hot fix and flip markets in your market and aren’t confident you know where to find the best deals or don’t know where to start, this should help.
Based on my experience, these are some of the best hacks used by people to find the best off-market deals in their market. While this certainly isn’t an exhaustive list, you’ll gain the insider’s view you need to get started in your search. Of course, if you don’t want to fly solo, that’s where we can help.
What Defines an “Off-Market” Property?
While the majority of sellers use a local real estate agent and the local Multiple Listing Service (MLS) to list and advertise their property to a wide pool of potential buyers and investors, this is not the only method of presenting a property for sale.
It is not uncommon for owners to market their properties off-market, making the decision to keep the sale of their property private for one reason or another. Sometimes called a “pocket listing,” an agent may represent the seller and their property, but they are not actively marketing the property online or within the MLS.
Off-market properties can also be in pre-foreclosure and not yet advertised publicly, or they can simply be a property that an investor is considering selling, but hasn’t made any grand efforts to do so.
Sometimes, it simply represents a property that has gone under contract, but has not yet hit the internet or multiple listing service. Listing agents often try to find buyers before that occurs, well, for the obvious reason…although we discourage that strategy simply because the Seller may never truly see what the property would have brought.
While the definition for “off-market” property varies widely, one thing remains the same—these are generally hot deals that investors are actively seeking out. Finding an off-market deal can mean less competition and a quick sale.
But if they’re not advertised publicly, how can you find hot off-market properties?
How to Find Off-Market Properties
At this point, it’s important to note that finding off-market properties takes time—and sometimes money—in order to find the best deals. Most importantly, however, it’s about finding a strategy that works for you, implementing it, and staying focused on your goals. The best fix and flip property deals require your patience, diligence and research…or a great agent that’s willing to put in the time. (wink)