How to Find Off Market Investment Opportunities

How to Find off Market Investment Opportunities

Investing in real estate affords multiple unique opportunities that can help you build a diverse portfolio. One opportunity that you should look into is the ability to invest in off-market properties. These homes are available for sale but aren’t listed directly on a multiple listing service (MLS).

Since these homes aren’t advertised in a public manner, investors have the potential to obtain lucrative deals in markets that are highly competitive. However, finding them is more challenging. This guide offers some suggestions on how to discover new off-market opportunities that you can profit from.

How to Find Off-market Investment Opportunities

There are several techniques you can employ to find off-market investment opportunities, which include everything from searching online to working alongside a real estate agent or broker.

Search for Off-market Investment Properties Online

Even though off-market properties aren’t listed on an MLS, there are numerous places where you can find these properties online. However, the internet has the largest pool of potential buyers for off-market properties. It makes it more challenging to identify a great deal as there is competition for these types of properties. The various websites you can use to keep track of off-market listings include:

  • Homeqt – $29.99 per month
  • House Cashin – Pay per lead for distressed listings
  • Zillow – FSBO listings for free
  • Roofstock – Can browse Roofstock Exclusives for free with a 0.5% fee upon purchase

Along with the sites mentioned above, Craigslist and the Facebook Marketplace are two additional solutions and potential places to find properties.

Network with Other Real Estate Investors

Another option is networking with other real estate investors who have had a lot of experience with off-market investments. Finding a successful deal requires searching through a large number of mediocre or bad deals. This search is easier if you have people you can talk to about investment properties.

It’s common for other real estate investors to be among the first people to learn about new off-market deals. If an investor in your network isn’t interested in the deal, they could recommend it to you. If someone in your network wants to put one of their own investment properties up for sale, you could have access to it before anyone else.

Attend Live Auctions

Even though auctions don’t always produce great investment properties, the properties that are put up for auction cannot be found anywhere else. A property auction involves homes that have already gone through probate or have been foreclosed on by lenders. While you can get a great deal at one of these auctions, there are some risks that apply. For one, you may need to purchase the home in “as-is” condition and solely with cash. You might not even have enough time to perform an inspection.

An auction can also be difficult to win if you’re not experienced. Before bidding on an investment property at an auction, it’s recommended that you attend one to gain a better understanding of what the process entails.

Hire a Reputable Real Estate Broker or Agent

While most realtors prefer MLS listings on the open market, there are also a significant percentage of brokers and agents who hear about non-listed properties that are currently up for sale. These properties are then reserved by the agents for the qualified buyers and investors they work with.

Private listings that agents know about are often times referred to as “pocket listings”, which are properties that they can exclusively sell but are unable to directly advertise. Many homeowners opt to sell privately because they want the deal to be kept incognito for multiple reasons.

Brokers and agents have built-in networks that make them well positioned to identify sound deals in the area you want to invest in. Before considering one of these properties, make sure that you let the agent know what type of property you’re looking for. By being more specific about your wants, the agent should be able to find a property that you’ll want to purchase.

With the right off-market investment, you can purchase a property that’s currently undervalued but easy to renovate and earn a profit on. Even though these properties can be difficult to find, the strategies mentioned above should guide you in your search.