Off market properties?

Question

I see that the residential side of real estate has a lot of websites (Zillow, Trulia,etc) but is there a website or app that you could see off market commercial properties or properties that will be coming to the market soon?

John K. · Answer

As most said on here, networking is key. You just never know when you get that email, text or phone call with a deal that puts a smile on your face.

Here are some other strategies that I use to locate properties, not just commercial.

1. Driving For Dollars - This is the tried and true way of finding ALL the off market properties. When it comes to commercial properties, specifically apartments, I change up my procedures quite a bit.

a. Look for the usual markers.  Building(s) in disrepair, overgrown grass and empty parking lots.

I use the daylight hours to locate and the evening hours to do my detective work.

For example: If I know the property has 24 units, I will visit that property usually 4-5x in a week, late at night. I want an idea of how many cars are parked there, to tell me what the occupancy might currently be like. It's certainly not 100% accurate, but it will get you close, once you have established the pattern. This also alerts me to potential problems, if there is a lot of "traffic".

2. Open Records. If you live in a full disclosure city, request records to help you identify potential hardships.

a. Citations issued for routine maintenance. While may not be a hardship, it certainly could be a frustration factor.
b. Request electricity turn off/on requests over the past 18 months. This list can be reverse engineered to help identify the following: High turnover, long term tenant(s) or empty units.

c. Request police responses over a 12 month period.  This list will speak for itself and can give you an excellent picture of the property. If the property is 90% occupied, that's great! However, if the 50% of those tenants know the police on a first name basis, probably not so great.

3. Taxes. As mentioned above, any of these that are delinquent in taxes.

4. Researching owners. Locate owners that are near the age of retirement. Maybe the right offer can set them free and allow them to retire.

5. Craigslist/FB:  Don't use these in the traditional manner, dig deep into what is being shared with all these "RENT ME" ads. I would personally automate this. Develop a spreadsheet that tracks the number of ads placed on any website that promotes rentals, over a 12 month period. Then look at the numbers to tell you if there is an occupancy problem. This is a bit out there, but once you set this up, you only have to look at the data.

6. Public Records:  Divorces, Bankruptcies, Law Suits, IRS Liens, Probate, other Judgements

I'm sure there are other ways, but I use most of these daily and produce more than enough properties, to keep me busy.

Good Luck!

John

Bob Langworthy · Answer

Consider changing your perspective: every commercial building without a for sale sign in front of it is off-market and potentially available to the right buyer for the right price. Think about your own house. It's probably not for sale right now, but if someone approached you with the right offer, you would consider selling it. @Theo Hicks has a series of Syndication School podcasts as part of the Joe Fairless podcast and in JF1618 he goes through 10 ways to find off-market properties. It's worth listening to a couple times.

Hope this helps,

Mike Dymski · Answer

You ain't gonna find off-market properties on the market.  The best way to get pocket listings is through relationships (networking, persistence, analyzing offerings and communicating with brokers, doing deals, being a closer). Commercial brokers have a long list of potential buyers and the only fast track to the top of the list is closing deals.

Greg Dickerson · Answer

There are usually some posted on craigslist but the best way to find off market deals is to download a list from the tax database in your city and sort by type then start calling or mailing.

Darius Anderson · Answer

its millions of off market properties go to facebook and type in wholesalers and cash buyers all the groups will pop up get in network ive made so many moves from there and through the people i met apt buildings commercial RE everything

Theo Hicks · Answer

@Bob Langworthy Thanks for the shout out! And you are correct. Look at every property (with or without a for sale sign) as a property for sale!

Parker Fairfield · Answer

I'd heard of Loopnet.com, but not the other websites. Great info! Loopnet is cool because I've a way to use Google to search it.... Check out the link if you'd like to learn how to use Google to show you its listings www.bit.ly/LoopnetInstructions

Parker Fairfield · Answer

Darius that looks like a great suggestion!

Oleg Shalumov · Answer

@Angel Pedroza Loopnet and crexi are the 2 websites I know of, but those usually are the deals that been shopped around and found no takers (unless the broker is new - which is very rear).

Find the brokers in the area you are targeting, and provide them you cafeterias. Very important to respond to them when something is sent to you - so they can see that you are serious. Once you build the relationship, and they see that you are looking and analyzing the deals, they will send you more.

Brian Metz · Answer

Hi Angel,

I'd agree with everyone above in that relationships and networking are key. When I'm researching a market, I'll utilize listings to identify the brokers that seem to be making the most deals (in addition to Google research of course). Calling them up and making introductions is a start. I usually get on their distro list for new listings as well. While these aren't off-market deals I find it helpful to gauge what's moving and at what prices/caps. While I never trust them fully, offering memorandums are a great place to start. Additionally, you noted residential websites - take a look at LoopNet if you haven't - they're not off-market deals, but it's the Zillow of the commercial side.

Cheers,

Brian

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