Do you prefer on or off-market homes and why?

[Katlynn Teague]

Good morning BP,

This may be a stupid question but I am curious, do you prefer on or off-market homes when purchasing a property to flip?

The reason for this question is that after my last post asking how most investors are currently finding their deals, a majority said off of the MLS. Which kind of made my head spin a little bit, most times when a property is active on the market it is listed at the as-is value. That as-is value is typically a higher price point than what most investors are willing to pay when they are looking to flip.

As a wholesaler and agent, our off-market properties are deeper discounted and priced at a number that makes sense. So when the time comes to sell the investor already has 20% equity in the property and is able to make a greater return. 

What are your thoughts? 

[Kyle Spearin]

@Katlynn Teague that's a great question! I think it depends on the person's strategy-- it could be that a lot of house hackers or other people new to real estate use the MLS because it's more straightforward.

I've personally never purchased anything off-market, but see tremendous value in it because of everything you mentioned. I think it's just a matter of learning how to acquire off-market deals through marketing, working with wholesalers, etc. For many people, this adds a level of effort/decreases the amount of comfort. Any recommendations on getting over this hump?