Why are off-market usually the most preferred properties among real estate investors?
There are varied reasons why many investors prefer off-market deals such as competitive edge, having more time to look over the properties and flexible negotiations. In this article, I will be providing the ultimate steps that had helped me succeed in obtaining off-market deals. All the apartments I’ve purchased have been direct to owner. Hopefully, this will help you learn, and it would be easier for you to get great off-market deals.
Determining Buying Criteria
Buying criteria means determining first what market you are interested in investing and getting narrow by deciding the kind of neighborhood you want to focus on. To narrow down further, for example, you can target an apartment between 75 to 200 units that are in neighborhoods from C to B and the year they built. You may also determine the rent as well as the working-class neighborhood with blue-collar as tenant-based.
If you can’t find the criteria you are looking for within the neighborhood, you may need to venture around to other cities/markets. Driving for dollars approach is one effective way of finding properties that are in distress condition that meet your criteria.
Having the buying criteria is very effective to assure that you can contact the right owner instead of focusing in many directions. This will help you save time and concentrate on certain properties. I believe in the sniper approach instead of the shotgun approach as they are a more efficient method.
Pulling a List
The second approach is going to a listsource.com or costar(if you have access). Listsource will allow you to sort specific criteria like owners with 100 percent equity in their house versus someone who has 10 percent equity that can cost you more at the end.
To find these properties, it would be best to have specific parameters that you can put in list sources like the city or owners in a specific area or zip code with a100 percent equity. Doing this will help you locate the right off-market properties.
Skip tracing is another effective approach. Now that you have the criteria and lists, you can now pull that detective mode out. You may need the help of a virtual assistant who will do the skip tracing process to help you save time and focus more on higher-value activity. In skip tracing, you’ll need important information such as the owner’s contact information. Don’t forget to use GOOGLE to get this information. There are also great sources out there, such as beenverified.com and white pages that can help you get the owner details.
Make a Call
Once you have the criteria, lists, and information, it is now time to take action, which is to contact them to offer a deal. Making a call is more valuable in sending them emails. Make sure to be prepared like having a script or sales pitch that is convincing enough. You need to be prepared for numerous rejections and objections too, and this can be prevented by preparing a rebuttal response or script too. If you have a real estate agent, it is best to give them the best training and role-playing. Don’t forget the importance of doing a follow-up too. Cold calling is an effective means to reach out and make that deal. You also need to be extra creative on how you can succeed.
Finding great off-market deal is easy as long as you have all the right information, tools, and people. Knowing what you want, such as the criteria for the market, pulling lists or driving for dollars, skip tracing and contacting them through calls. Of course, you have to be persistent and the proper mindset to make that goal possible.
Do you have a hard time finding great off-market property deals? Don’t hesitate to reach out to me.
I’m giving away a copy of my book “From Zero to 400 Units”. Grab your FREE copy here. Also, I am hosting an Intensive Real Estate Investing Training. Will Take You By The Hand To Show You Exactly How This Works— Absolutely FREE! Book your COMPLIMENTARY Seat here.I am putting up an elite group for real estate entrepreneurs like yourself. If you wish to be part of the “The Real Estate Mastermind Group” take the free self-assessment test to see fit.