Finding off market properties?

Question

I keep hearing all about how the best deals are off market. But, obviously, they are hard to find by virtue of being off market. How do you all find good off market deals? Is there a way to efficiently learn about them or do I just ask brokers to send them to me? If you have an answer specific to multifamily and/or Los Angeles that would be great but I'd also love to hear your thoughts in general. Thanks!

Will Fraser · Answer

There are a lot of different avenues to take here, @Michael Egan.  In general off-market properties simply means everything that isn't already listed, but the trouble with that broad of an understanding is that "off market' has no "gathering points" or type-forms.  if you can't "stereotype" (the good version of this word, not the negative junk) a group then you can't approach the group.  So, getting a bit granular about what you're after can be helpful:

• Property managers, CPAs, and Estate attorneys can all be great sources for off-market properties from investors who have owned a while and looking to get out of the game
• Handymen and other contractors can be great sources for off-market properties from people that got in over their heads.
• Agents who own can be a great source of "off-market" listings, but normally you'd be paying close to retail price for their "off market" listings.
• Divorce attorneys can be a great source for pre-market properties, or the occasional rental property.

All of these are are possible because they have obvious "watering holes" or congregation points.

Food for thought :)

James Hamling · Answer

@Michael Egan as a person who does off-market deals on a nearly daily basis now, I'd love to help clarify a point I never found anyone share back when I tried "crack the code".

The secret to sourcing off-market deals is that it's a habit, not a "how to".

When we as humans think of "how do I", we conceptualize things as a 1 time "thing", if i just "figure it out" than I can have off-market deals. And that is why so many fail at it, it's not a 1 and done, nor 10 time, 20, 50, 100, it's an every day drip, drip, drip "thing". It's compounding effect of multiple strategies, multiple actions, repeated with regularity and persistence.

It is about building a pipeline BUT every foot of pipe laid requires regular maintenance or else it disintegrates into nothing and is gone. So it is part building, part maintaining, the more you build the more you must maintain.

Its when you speak to someone on a potential, it's asking whom they know that maybe you could help. It's meeting an auctioneer and asking if they deal with estates, and if there clients ever have distressed property problems. It's a lifestyle, building relationships, being "the" expert AND being of assistance, nobody likes getting sold but everyone appreciates a genuine assistance and help.

That is the secret ingredient, that there is no secret ingredient.

Shiva Bhaskar · Answer

Our team is closing soon on a 10 unit in LA (county, unincorporated) which we acquired directly from the seller. Took a lot of work, but it can be done. Happy to chat about this.

Jason N. · Answer

I talk to investors on a daily basis and most are going to Listsource or propstsream to a source the list of properties based on whatever their sweet spot or criteria are. They would then skip trace it to get the contact information for those owners. A good skip trace will produce quality numbers, emails, mailing addresses and other background information to determine if you should reach out to relatives.

From there you can text, call, mail, email, and/or social ads to get in front of these prospects.

Here's a good episode on someone who sources 75 off market deals by the age of 20 - https://www.biggerpockets.com/...

Jonathan Greene · Answer

Since they are off-market, brokers don't have access to them and most agents don't play in the off-market pool. You find off-market deals through wholesalers, other investors, and your own direct marketing and skip tracing. You can look for a specific subset of data that works for you, but it depends on how you are leveraged. If you are coming in all cash, you have an easier pitch. If you can only do seller financing, much more data needs to be looked at to see what might work and why.

Agents do carry some off-market (In CA, pocket listings), but those get blasted to lists of qualified investors they already know.

Stephen Keighery · Answer

@Michael Egan the short answer is you need to do marketing to generate leads of sellers who are motivated to sell off market. There are lots of different marketing strategies. If you want to lots of deals for a long time it might  make sense to invest in developing a system. If you don't want to do a lot of deals or just want to focus on the flip/BRRRR part of the project then get with some good wholesalers in your market and buy the deals from them.

Jim Owens · Answer

Hello @Michael Egan. I am looking for the same information that you posted about. Did you ever get it figured out about how to get a pipeline of off market deals going?

James Hamling · Answer

Sorry @Michael Egan, I tried to give you, and all others watching this post, a leg up by giving you exact direction for Step 1, the most critical step, in building a pipeline of off-market deals and some Moderator banned and removed my post saying I was "advertising my company" even though I don't own it, it's been mentioned about a bajillion times by thousands of others, but ok, apparently I can't mention them. Hell, I WISH I owned them, lol.

I will send step 1 to you directly, for everyone else, I guess you have to guess because I am not allowed to say, it's apparently top secret or something.

Finding off market properties?

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