EP31: 7 Ways to Find Off-Market Deals with Amelia & Grace
Hey everyone, welcome back to another podcast episode This week we’re diving into a fun topic, 7 ways to find off-market properties. Both of us have purchased a good majority of our deals when they were off-market so we have some great stories and experiences to share with you.
Method 1: Driving for Dollars
This tried-and-true method involves you simply getting into your car, and taking a drive. While we have found that this method tends to work better in smaller towns, that doesn’t mean it won’t work anywhere, it just means you have to be more specific. What we do is drive around, looking for run-down multi-family properties, write down the address, then looking up the owner's information on the assessor's website. Once you find out who the owner is reach out to them, and ask if they have considered selling. Start the conversation, don’t overthink it, and don’t be afraid to ask. Lastly, remember that some ‘no’s’ might also mean ‘not right now’.
Method 2: Direct Mail
The direct mail method can happen in two ways: one is if you are looking on a smaller scale to find a property you like (think about method 1) and write them a handwritten note. The second way is more of a professional approach, but also more costly and yields a larger number of leads. However, with this route, you have to be prepared to funnel in a large number of leads and scale quickly.
Method 3: Calling For-Rent Signs
This is how Grace found her first property. She called the number on a for-rent sign and after realizing the owner was an investor she asked if they had any available properties they were interested in selling. After getting a list of around 30 properties, Grace asked to see the crappiest property because they knew they could make a massive dent and turn it into a BRRR. After walking the property they went under contract, while it was off the market.
Method 4: Wholesalers
In the world of REI, knowing people is truly where it’s at. Make sure you are joining local Facebook groups and attending local networking events to make those connections with wholesalers in your area. If you are going the wholesale route, make sure you are crystal clear on your buy-box so your time is not wasted by people sending you properties you wouldn’t even consider. Lastly, wholesalers are willing to sell quickly, for a lowball cash offer, which means you have to have cash and close quickly.
Method 5: Word-of-Mouth/ Contractors/ Networking
Another favorite method of ours, word-of-mouth is an effective way to find off-market properties. Don’t be afraid to shout from the rooftops what you do and what you are looking for. We recommend having a space (whether that is on Facebook or IG) where people can follow you and you can keep your name in their heads so when they do hear about a deal, they remember to connect with you about it. This also goes for letting your contractors know because they know a lot of people and are very well-connected.
Method 6: Social Media
We touched previously on social media but when you make sure people can find you easily and see what you are doing people are much more likely to reach out to you. Also, we both have experienced organic leads (both legit and not-so-great) from social media, so make sure you are posting those rehab photos!
Method 7: Connecting with Current Landlords
This final method is another tried-and-true one and we cannot emphasize enough how important it is to utilize your network. Contact investors/property owners, you have purchased from before, or other local landlords to see if they know of any gems that might not be on the market. By purchasing off-market deals you are also avoiding realtor commissions and landlords are always happy to have more money in their pocket from a sale.
The moral of the story about off-market properties is that sometimes they're hard to find, but if you just keep your eye out, you're constantly putting yourself out there, and you're always asking questions, they will come to you.
We hope you enjoyed this episode and we will catch you in the next one.
Resources:
Get clear on your Buy-Box
Listen to our Guide to Rental Arbitrage
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