I have made a few offers on MLS, but at my purchase price, I am limited in my choice of the market and in a competitive pricepoint. I know ways to explore off-market deals, but my question is how is the financing taken care of? I am looking to take advantage of 5% conventional loan while I have a W2 which I plan to leave soon. Is this just a conversation I need to have with my agent? Any feedback or resources would be helpful, thank you.
Realtor · Cleveland, OH · Member since 2021 · 1k+ posts · 1k+ votes
4y
You can finance the deal the same either way, and in some cases an off market deal will provide you the option of seller financing which isn't very common for a market listing. Finding a consistent stream of off market deals yourself is difficult and finding someone or a business who is already experienced in that will be well worth your time.
I would advise finding an investor friendly realtor. You really want someone that invests in their market themselves and understands the numbers. They should be able to determine the COC, annualized return, estimated ARV of a BRRRR, accurate rent comps and more. The valuation and market value of a multi family property differs from a single family and you want someone that understands the distinctions if you go that route. If they just represent first time single family home buyers and aren't constantly finding off market properties and reviewing deals, you'll find a better investment through someone else.
Rental Property Investor · Brooklyn, NY · Member since 2014 · 722 posts · 1k+ votes
4y
The financing doesn't change depending on how you source the deal (i.e., on-market or off-market). You will have the same options available to you or not available to you regardless of whether the deal was marketed by a broker or not.
Realtor · Cleveland, OH · Member since 2021 · 1k+ posts · 1k+ votes
4y
You can finance the deal the same either way, and in some cases an off market deal will provide you the option of seller financing which isn't very common for a market listing. Finding a consistent stream of off market deals yourself is difficult and finding someone or a business who is already experienced in that will be well worth your time.
I would advise finding an investor friendly realtor. You really want someone that invests in their market themselves and understands the numbers. They should be able to determine the COC, annualized return, estimated ARV of a BRRRR, accurate rent comps and more. The valuation and market value of a multi family property differs from a single family and you want someone that understands the distinctions if you go that route. If they just represent first time single family home buyers and aren't constantly finding off market properties and reviewing deals, you'll find a better investment through someone else.
Lender · Tampa, FL · Member since 2020 · 182 posts · 90 votes
4y
You can absolutely finance off market deals with a conventional loan. So long as you qualify and the home meets the minimum property requirements, you shouldn't have any issue.