As an investor in real estate, it’s your job to find the best deals possible to ultimately maximize your profits. Many investors stick to foreclosure auctions and MLS property listings as their vehicles for purchasing new investment properties. But is this really the best avenue to travel in this regards?
Like most investors, we want you to know the ins and outs of the real estate business like the back of your hand. We want you to have the best opportunities possible to purchase high quality real estate at affordable prices. And if you are overlooking off market real estate deals, you are seriously leaving big money and great properties on the table for other investors to snatch up.
Is off market real estate investing brand-new to you? Maybe you don’t realize that thousands of properties all around the US are being sold every month and being completely kept out of the limelight. These properties aren’t listed on StreetEasy, Zillow, or Realtor.com.
So how do you find these elusive properties? And are they really worth your while? We’ll do our best to answer both of these questions by starting out with the benefits of purchasing off market real estate first. And if you are thoroughly convinced that this is a great way to invest, we’ll even provide some tips to find top-notch off market deals right in your own backyard.
Off Market Sales Are Kept Low Key for Obvious Reasons
Let’s look at New York real estate is a prime example of low key property buying and selling. You realize that many celebrities live in New York City, right? And these celebrities have a tendency to own lots of property because they have plenty of money to burn and they like living the good life. They deserve to live the good life too because they make an excellent living and they should enjoy the finer things.
Guess what? Celebrities and big investors buy and sell real estate all the time. When a celebrity sells one of their Upper East Side apartments they aren’t going to have every Tom, Dick, and Harry traipsing through their flat just to sell the place. There would be mobs of people swarming their apartment just to get a look at how they live.
Instead, they list their properties off market and never publicize these sales. This is how the rich and famous do business, and if you ever wanted to buy this high-end real estate as an investment, you’ll need to learn the ins and outs of this industry unlike the average Joe. Plus there are lots of great off market deals to take advantage of so it’s best to understand this aspect of the industry sooner rather than later.
You Gain a Competitive Edge As an Off Market Real Estate Buyer
We’ll continue with our New York City example for consistency’s sake. As an investor buying properties in NYC, you are literally immersed in competition. There are hundreds if not thousands of potential buyers competing for the same properties. So if you happen to find a good deal on Zillow that the seller accidentally undervalued for one reason or another, you can bet your bottom dollar that dozens if not hundreds of buyers are going to be interested in the property.
Guess what? At this point the seller is going to recognize the error of their ways because so many people are going to bid on their place of abode. They are either going to convince buyers like you to raise their offer price or they may take the property off the market entirely and re-list it for a much higher amount.
Forget clawing and scratching your way through typical real estate deals that everybody knows about. Instead provide yourself with a competitive advantage by competing with one or two other people in off market real estate deals. You’ll feel better because it’s less stressful and you’ll save a great deal of money because you aren’t forced to up your offer price because so many other people are interested in buying the same real estate as you.
Negotiations Are Very Flexible with Off Market Real Estate Deals
Not only will you have a competitive advantage buying off market properties, you’ll also be able to flexibly negotiate with sellers better in this regard. Since everyone is more relaxed and at ease, when you come to the negotiation table you aren’t going to be in a stressed-out and competitive environment. You’ll be able to design a contract to your liking that you wouldn’t normally get in a competitive open market.
The Best Ways to Find Off Market Real Estate Deals
As you’ve undoubtedly surmised, some ways of finding off market real estate are going to be much better than others. We’ll share our favorite methods with you below. They include the following:
- Direct mail marketing – oddly enough, marketing via direct mail is a great way to find excellent off market real estate deals. You can send out postcards that specifically target your ideal home seller and let them know about your interest in buying their home. Believe it or not, homeowners may not even know that they have an interest in selling their property until you make an attractive offer that they just can’t refuse. Don’t knock it till you try it because direct mail marketing is an amazing way to buy incredible property that nobody is competing for.
- Real estate networking – one of the quickest and easiest ways to find great leads on off market properties is through real estate networking. Do yourself a favor and begin attending real estate events in your local community. You’ll meet groups of people with plenty of great real estate connections that can point you in the direction of fantastic off market property listings. These networking events make it more than possible to discover incredible deals that the average Joe or Jane just doesn’t know about.
The benefits of off market real estate investing shouldn’t surprise you in the least. When you have less competition, flexible negotiations, and gorgeous properties at your fingertips, you’re bound to make a killing investing in properties when the other schleps are biting and scratching for a tiny piece of the pie with traditional listings. Get out of the rat race and into the money by investing in off market real estate as soon as humanly possible.