How to find off market deals

Question

Hey guys,

I am a long time reader first time poster. I currently invest in the St. Louis, and Columbia MO area and

Im really looking to increase my footprint over the next 12-18 months. I'm sure this topic has probably been hammered to death, but how does one go about finding new deals, especially ones not on the MLS? I've heard about wholesalers and marketing with flyers, but have yet to run across a wholesaler in STL (very open to working with some if possible). Any and all advice welcome.

Thanks,

Daniel A. · Answer

Hello Orvil,

If you want to find those deals, get out there and market yourself. Anyone can hop on Zillow and look at those spiced up pictures and decide the asking price is within a respectable range. But if you want to find those off market deals, there's one of two ways that will get you further along if you keep at it.

Way One: Tell everyone that you are a real estate investor. Plain and simple. Let your friends and family know. Let your neighbors know. Let the mailman know. Let them know that you are actively searching for properties in the X area. If you have a specific type of property (i.e., multifamily, single family, condo), tell them that that is what you are looking for. Someone you talk to might know someone who is just so happening to sell what it is that you're looking for. I would even go so far as to have some business cards printed up. It might seem a little pretentious, but how would anyone get in contact with you otherwise? It would also show that you're serious, and not just blabbing your mouth about wanting to get into real estate.

Way Two: Place ads. You ever hop on Craigslist and see listings saying "I buy any home!"? It might seem cheap and corny, and it is to a certain degree, but if you're gunning for deals, you don't want to let some prospects slide by. Place a respectable ad saying something to the effect of, "I'm looking to buy your house!" Plain and simple. Then craft up a description and see what happens.

I will also say how you go about marketing depends largely upon your business model. Are you looking to invest in turn-key? Or are you leaning toward flipping? Are you looking to keep the properties as rentals, or sell them off to other investors? If you're looking to buy turn-key, then trying the Craigslist route might not be your best option, whereas if you're looking for a beat up property that you can get cheap, Craigslist might do you well.

What I will say is this: Let the world know that you're a real estate investor. If someone knows you, if someone likes you, and hears that you're in the market for a property and their friend's grandma is looking to sell, they just might bring that deal to you before they hoof it to the realty office down the street. Some of the best offers come by word of mouth.

Keep pressing onward and reading up on how to find those properties. Hope I provided some level of guidance. The best of luck to you.

Kahnica Cole · Answer

Great post! And such good true information @Daniel A. and @Joanne Eriaku. Sending letters to potential Sellers is a good idea too. Try a websites that can give you a list of those potential Owners/Sellers. You have to pay a small fee, but it will get you some leads that way too. Try to target "out of state owners". And also, "in all your ways acknowledge God, and He will direct your paths.."

Joanne Eriaku · Answer

Everything that @Daniel A. said plus. Drive for dollars, be on the lookout for any signs of distress- unkempt yard etc. Also consider Probate Notices in the local newspaper, befriend Probate attorneys or such like, at-times they are stuck with property in a state of disrepair.

Daniel A. · Answer

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Hello Orvil,

The way I see it is that if you plan on getting the horse, then you're not putting the cart before the horse by any means. It's all in how you bring the components together once you have everything. You know that you're going to need these components at some point to enhance your business, and if you've got one or the other in front of you, jump on it.

And look at it like this: A website is a means of advertising yourself. If you craft a website that is simple, succinct, and to the point, then people will know who you are, what you do, and what you want. If they have what you want and want what you have (your business or your money for their product), then they'll have a way to reach out to you. In many ways I see the website and your professional image as the road upon which the horse and the cart travel. If you give yourself a professional image and conduct business in a professional manner, the road will be smoother.

Let me toss out an example of the importance of marketing yourself. I have a friend who has decided to breed and sell a certain breed of dogs. He has the dog but the breeding stage has not yet commenced. However, he has already posted information about it online and has already received multiple expressions of interest. He took the same route when he was working on a tiny rental property. He had multiple people lined up before it was even ready. I, on the other hand, usually like to have everything set in stone and ready to go before I start marketing, but I'll tell you this, my friend gets ten times the amount of interest in whatever it is that he's doing by doing his method. It's a motivator when you see that X amount of people are interested.

It seems like you are already on this track, but I'll toss out some ideas just for the fun of it. Get your website up and going. Get some business cards. But before you get the business cards, do yourself and your business a solid: get a professional email. Don't have a great business card with an @gmail.com ending. You will stand above others if you get the @[your business name].com. It exudes professionalism. You might even want to get some t-shirts with your logo. Maybe some nice polos. I am inclined to recommend getting some pens with your logo and number printed on them. I have seen a few people draw blanks on a company name only to pull out a pen and recite the information on it. But then to complicate things, I also want to recommend that you don't overdo it. If you're giving everyone you meet a pen, a business card, a magnet, and a bumper sticker while you're wearing a branded t-shirt and a branded hat, you're going to look a bit corny.

Kahnica Cole · Answer

@Orvil S. I mean Listsourse.com LOL!

Caleb Brown · Answer

The top ways I find deals....

1)Cold calling/texting

2)SOI

3)Whoelsalers

4)MLS

Orvil S. · Answer

@Alina Trigub thanks for the link. Your article was a great read and really hit home. I especially liked your search criteria list. A great reminder that failing to plan is planning to fail.  Great website as well.

@Judith Summers thanks for joining. I wish you luck on your journey.

Alina Trigub · Answer

@Orvil S.

As you said it yourself, this topic has been hammered to death numerous times on BP. I also answered this question a bunch of times until I decided that it's easier to put my response together via a post: https://www.biggerpockets.com/blog/how-to-find-off-market-multifamily-deals

Judith Summers · Answer

Thanks, Orvil for the question, and Daniel and Eriaku for the response it was quite helpful.

Orvil S. · Answer

Wow. All great information. I can say enough, just how intelligent and giving this community is. Time to get to work!

How to find off market deals

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