The real estate industry is quite complex that amidst low supply and high demand, the MLS doesn’t account for every property available for sale. You’d be shocked that many properties are sold weekly without ever being listed on the MLS. These types of real estate deals are called off-market wholesale properties, also known as pocket listings. They are a significant lead to real estate success for investors who know how to find them.
Because of the unconventional way these deals require, we have compiled few tips to help you navigate how to find off-market wholesale real estate with maximum benefits.
What is Off-Market Wholesale Real Estate?
Off-market wholesale real estate refers to investment properties that are for sale; however, they cannot be found through the traditional way most people are familiar with. Off-market wholesale real estate means that the seller didn’t put up the property for advertisement on the MLS or any alternative platforms. This investment strategy sounds exhausting, right? Follow our tips, and you’ll get yourself on the great path of finding quality off-market deals.
Smart Ways to Find Off Market Wholesale Real Estate
Off-market wholesale real estate deals can provide several benefits to investors, making them highly sought after. However, due to their discreet nature, many investors often have a hard time finding them. There are diverse ways to identify off-market deals; however, we recommend that investors should pursue more than one strategy at a time to get maximum results.
Wholesalers: Wholesalers are great partners to have if you’re an investor interested in off-market properties. This is because that is precisely what wholesalers specialize on – real estate wholesaling
Direct Mail: One of the smartest ways to find off-market wholesale real estate properties is through direct mail marketing. You need to define your target, send out postcards, or any other ads that express your interest. Sometimes you might be helping a homeowner to realize they are ready to sell.
Builders & Contractors: Builders and contractors are great friends to have as an investor interested in high rewarding off-market wholesale real estate. They are usually conversant with the environment and have real-time information about most homeowners and builders.
Networking: Networking is one of the best lead generation strategies in the real estate industry, which also holds for off-market wholesale real estate. Networking becomes comfortable when you partner with the right people.
Public Record: It is good to keep an eye on public records when seeking profitable off-market wholesale property deals. These public records, like newspapers, often feature pre-foreclosures or short sale properties, which are highly rewarding for a real estate investor.
Auctions: Real estate auctions are suitable for investors because they always have a steady stream of off-market properties to choose from. Browse through several auction websites to find auction properties with excellent potential.
Word Of Mouth: Real estate investing is a people business. Anyone you encounter or relate with should know who you are and what you do. The more you do this, the more people will remember you when they come in contact with an off-market wholesale real estate property.
Advantages of Buying off Market Wholesale real estate
There are diverse reasons why investors are often drawn to off-market wholesale real estate. Here are some of the reasons to consider:
Minimum Competition: Off-market deals provide buyers a competitive edge because these deals are not open to many other buyers. Investors tend to compete with three or four other investors at most, which helps prevent bidding wars, which leads to ridiculous prices and losing out on deals altogether.
Lower Prices: Minimum competition in real estate business means lower sale price.
Polished Negotiations: Off-market deals often go unnoticed by many investors, which gives the seller and the buyer the opportunity for informal negotiation.
Flexible Transaction Period: Sellers are often not in a rush when dealing with off-market deals, which gives the buyer enough time to carry out due diligence and generate the funds needed for sale.
As a whole, off-market sales provide a variety of benefits for investors who know what they are doing. Are you interested in adding off-market wholesale real estate properties to your investment portfolio? Contact us at InvestWay now to get you started.