Found Deals Off Market - Here's How
Here is a big pro tip:
Stop buying on the MLS. It’s too expensive! There is a process called "Buying Off Market". Where do you think all of those properties on the MLS come from? They were "off market" until they were "discovered by an agent" and put on the MLS. Think of it this way, someone decides to sell their property, so they call a realtor who takes 6% (so they can get paid) and lists it on the MLS. When you find the property before it goes on the MLS, you can buy for 6% less. On a $400,000 house that's about a $24,000 savings. I do this all of the time.
Then I use “Subject To”, which runs $15,000 to $20,000 to buy a property instead of putting 20% down ($80,000 on a $400,000 property), and a similar process called “Seller Financing” that gives way more than 1% monthly income.
There are other ways called “SEO” and “Pay Per Click” and “Yard Signs” and so on to find properties.
That’s right, you can buy 3 properties for $50,000 “Off Market”. Yes, you get depreciation and tax write offs. And it can be done out of state. These are decent homes in decent neighborhoods. Don’t try this in cheap neighborhoods. It’s too much work.
For instance, This property was bought for $5,000 (Five Thousand Dollars).
Click on images to enlarge Purchase & Sale Agreement (many more examples available).
and this one was bought for $5,000 (Five Thousand Dollars).
There are hundreds of people doing these every day around the country.
My experience is the best place to focus on these are the typical places. Dallas, Atlanta, Indianapolis, Columbus. Places where investors are welcome and prices are reasonable.
We’ve had success in WA, AZ, TX, AL, GA.
Oh, I’d not tried in Socal yet, because of the high price point and unfriendly landlord/tenant laws. If someone is buying “off market” in California, please comment.
Isn’t it amazing to see what can be done with investment dollars. Instead of the bank making the money, the investor does. What a thought. A certain amount of people are willing to sell on Creative Finance, like Subject To, (Subto), Wraps & Seller Finance for various reasons.
It's usually under $15,000 or so in "up front" money, so make sure you have some capital. No need for credit, no need for financing. These properties can be used for a rental, fix & flip, STR, Lease Option, 1031 whatever crosses your mind.