Finding Off-Market Properties

[Mendez Garcia]

Real Estate newbie here! I aim to purchase my first multi-family unit in NJ and house hack it to the MAX! I'm getting pre-approved to see how much I can afford with my current income and savings funds. I'm curious about the different strategies to look for off-market properties in my area. Is it just knocking door to door and finding out if homeowners are interested in selling?

Thanks for the help in advance!

[Johann Villalvir]

Hey Mendez! As a data scientist, I've sold data to several of wholesalers before. Some of the potential sellers they market to:

-Probates

- Divorce

- Eviction

- Code violations

And all sort of combinations.

[Kevin Manafi]

Hey @Mendez Garcia,

Welcome to the BP community and congrats on your first post! It's great that you're starting out your investing and house-hacking journey.

In terms of searching for off-market properties, there are a lot of different strategies, not just limited to door-knocking. These include direct mail, cold calling/emailing, and driving for dollars, just to name a few. It's really a trial-and-error process over time of experimenting and seeing what works in your particular area.

[Abbey Humphreys]

It's definitely a combination of tenacity and luck- and knowing the right people! There are plenty of ways to meet people but realistically you have to be willing to put yourself out there over and over again. 

Given that you're preapproved and you have funds saved, you're set up far better than most. 

[Joey Banasihan]

Hey @Mendez Garcia, welcome!

You are taking the right steps for sure! Couple thoughts to be thinking of on your journey:

- Is the goal with off-market to get the best deal? Or is your goal to start the journey? It is easy to get hung up on whether a home breaks even or doesn't cover the entire mortgage, but sometimes just taking the step and getting started is more important.

- Are you open to SFH homes and house hacking? Pending on inventory and your luck with off-market, there may be an opportunity to do a room to room rental; this could be LTR or Mid-Term Rentals.

- Outside of the what folks have stated, utilizing Facebook Market Place and Craiglists could be another option. Whether they are selling or trying to rent a home, and possible avenue to begin conversations. 

Good luck and hopefully you are able to get into your first property soon!

[Mendez Garcia]

Quote from @Joey Banasihan:

Hey @Mendez Garcia, welcome!

You are taking the right steps for sure! Couple thoughts to be thinking of on your journey:

- Is the goal with off-market to get the best deal? Or is your goal to start the journey? It is easy to get hung up on whether a home breaks even or doesn't cover the entire mortgage, but sometimes just taking the step and getting started is more important.

- Are you open to SFH homes and house hacking? Pending on inventory and your luck with off-market, there may be an opportunity to do a room to room rental; this could be LTR or Mid-Term Rentals.

- Outside of the what folks have stated, utilizing Facebook Market Place and Craiglists could be another option. Whether they are selling or trying to rent a home, and possible avenue to begin conversations. 

Good luck and hopefully you are able to get into your first property soon!

 Hi @Joey Banasihan!

I'm mainly focused on getting started on my first property. I want to get my hands in the game to understand better what real estate investing entails. The idea of house hacking within a SFH has crossed my mind, but there would be limits to the number of rooms I'd rent out since it would be my fiance and I. However, I plan to rent a room to my sister-in-law when we purchase the multi-family house.

I appreciate your comment, Joey!

[Mendez Garcia]

Quote from @Abbey Humphreys:

It's definitely a combination of tenacity and luck- and knowing the right people! There are plenty of ways to meet people but realistically you have to be willing to put yourself out there over and over again. 

Given that you're preapproved and you have funds saved, you're set up far better than most. 

Thank you, Abbey! I want to make the most of the opportunities available to set myself up for the future. The value of talking to people about my plans who share similar values and interests and are like-minded has struck me more recently. I for sure need to just focus on putting myself out there.


 

[Mendez Garcia]

Hi, @Kevin Manafi! I appreciate the tips about the different strategies to find off-market properties. If you wouldn't mind, what exactly does driving for dollars mean?

[Kevin Manafi]

@Mendez Garcia Driving for Dollars is one of the easiest and most common real estate strategies for finding off-market properties--you just drive around different towns/neighborhoods looking out for homes that look distressed, vacant, abandoned, etc. (homes with overgrown lawns and weeds, mailboxes filled up, etc.)--you can then note the addresses and mail them, try to doorknock and/or cold call the owners and try to purchase the home.

[John McNeil]

Hi Mendez -

I am new to RE as well and am in a similar situation looking for off-market opportunities (Boston-area). A lot of people tell me that networking is key. If you can find an agent that specializes in finding off-market deals or a wholesaler that could work in your favor. If you want to find the deal yourself, driving for dollars is another good strategy. You can find owners contact information in your county's registry of deeds and start directly marketing to those people. Hope this helps!

John

[Lien Vuong]

I dont think that you should limit yourself to only off markets as there's plenty of opportunity on market. Its about expanding your search and looking to secure something that makes sense for you. The allure of off market sounds sexy but those deals are not so easy to come by!