{"id":175060,"date":"2024-07-08T13:34:47","date_gmt":"2024-07-08T19:34:47","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=175060"},"modified":"2024-07-28T06:28:01","modified_gmt":"2024-07-28T12:28:01","slug":"ways-to-find-off-market-deals-in-2024","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/ways-to-find-off-market-deals-in-2024","title":{"rendered":"5 Ways to Find Off-Market Real Estate Deals Like a Pro"},"content":{"rendered":"\n\n      <iframe loading=\"lazy\" frameborder=\"0\" height=\"200\" scrolling=\"no\" src=\"https:\/\/playlist.megaphone.fm\/?e=BIGPOC4066853207\" width=\"100%\"><\/iframe>\r\n  \n\n\n\n\n<p><em>This article is presented by&nbsp;<a href=\"https:\/\/www.propstream.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">PropStream<\/a>. Read our&nbsp;<a href=\"https:\/\/www.biggerpockets.com\/blog\/editorial-blog-guidelines\" target=\"_blank\" rel=\"noreferrer noopener\">editorial guidelines<\/a>&nbsp;for more information.<\/em><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">For any real estate investor, understanding current market conditions is crucial. Right now, most investors are finding themselves in an environment where great investment deals are more scarce while competition is high. In practice, this means that as a real estate investor, you will miss out on many deals on properties advertised on the open market.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">To <\/span><span data-preserver-spaces=\"true\">try and<\/span><span data-preserver-spaces=\"true\"> mitigate the effects of tough competition, you have two options: One is to <\/span><span data-preserver-spaces=\"true\">try and<\/span><span data-preserver-spaces=\"true\"> generate more leads and somehow react faster than your competition. The other\u2014much more feasibl<\/span><span data-preserver-spaces=\"true\">e\u2014<\/span><span data-preserver-spaces=\"true\">a<\/span><span data-preserver-spaces=\"true\">pproach<\/span><span data-preserver-spaces=\"true\"> is to look for off-market real estate deals instead.<\/span><span data-preserver-spaces=\"true\">&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Off-market deals are the real estate investor\u2019s holy grail right now. As getting good returns becomes harder, these deals offer you a chance to secure real estate at a discount while avoiding competition from other local investors.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Here, we\u2019ll <\/span><span data-preserver-spaces=\"true\">do<\/span><span data-preserver-spaces=\"true\"> an overview of the main ways to find off-market deals<\/span><span data-preserver-spaces=\"true\">\u2014both with the help of<\/span><span data-preserver-spaces=\"true\"> online tools and <\/span><span data-preserver-spaces=\"true\">by<\/span><span data-preserver-spaces=\"true\"> building your investor networking skills.<\/span><span data-preserver-spaces=\"true\">&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">1. Work With Wholesalers&nbsp;<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">Think of this as a way of casting a wider net in your search for deals<\/span><span data-preserver-spaces=\"true\">, a<\/span><span data-preserver-spaces=\"true\"> strategy <\/span><span data-preserver-spaces=\"true\">that\u2019s<\/span><span data-preserver-spaces=\"true\"> especially worthwhile when market conditions are tough, as they are right now.<\/span><span data-preserver-spaces=\"true\">&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">A wholesaler may <\/span><span data-preserver-spaces=\"true\">just<\/span><span data-preserver-spaces=\"true\"> present you with a deal on a property <\/span><span data-preserver-spaces=\"true\">that<\/span><span data-preserver-spaces=\"true\"> you wouldn\u2019t find on the MLS\/through your local agent.<\/span><span data-preserver-spaces=\"true\"> Wholesalers are particularly useful for finding investors distressed properties at great prices. By \u201cdistressed,\u201d we mean properties that need renovations.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">If you\u2019ve flipped homes before and have a contractor you trust <\/span><span data-preserver-spaces=\"true\">who is<\/span><span data-preserver-spaces=\"true\"> ready to embark on a house-flipping project with you, great! A wholesaler will often be a great bet for finding <\/span><span data-preserver-spaces=\"true\">you<\/span><span data-preserver-spaces=\"true\"> a property that\u2019s off the market and ready to be flipped.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">However, there are a couple of caveats to be aware of. You likely will have to act fast: Wholesalers need to close deals quickly, so be prepared for zero-day due diligence in some contracts, which means you\u2019ll have to buy the home as is. Also, be ready with the funds for an earnest money deposit (typically 1% to 3% of the total value of the property).&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Bear in mind that the wholesaler needs to make a profit, too, so while you\u2019ll be getting a below-market-value property, there will always be a markup to cover the wholesaler\u2019s profits.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Even with these caveats, the convenience of having an off-market deal brought directly to you means a relationship with a local wholesaler can be well worth it for experienced house flippers.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">2. Contact Homeowners With Vacant Properties<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">A vacant property is almost always beneficial to a potential investor; so much so<\/span><span data-preserver-spaces=\"true\">, in fact,<\/span><span data-preserver-spaces=\"true\"> that some investors specialize exclusively in buying vacant properties. <\/span><span data-preserver-spaces=\"true\">These <\/span><span data-preserver-spaces=\"true\">do come with a lot of<\/span><span data-preserver-spaces=\"true\"> advantages, and the biggest one is that the owner of a vacant home is much more likely to be motivated to sell than a regular seller.<\/span><span data-preserver-spaces=\"true\"> That can mean a great deal for an investor ready to relieve the seller of a property they\u2019re keen to get rid of. After all, it\u2019s not making them any money, and they\u2019re not benefiting from living in it.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">The difficult part can be finding vacant homes<\/span><span data-preserver-spaces=\"true\">.<\/span> <span data-preserver-spaces=\"true\">In some cases<\/span><span data-preserver-spaces=\"true\">, the seller gave up and took the <\/span><span data-preserver-spaces=\"true\">home<\/span><span data-preserver-spaces=\"true\"> off the market. They may have moved away from the area and don\u2019t have any more time or resources to devote to trying to sell the property.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">This<\/span><span data-preserver-spaces=\"true\"> is where you come in, preferably equipped with a dedicated search tool like <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.propstream.com\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">PropStream<\/span><\/a><span data-preserver-spaces=\"true\">. PropStream lets you search specifically for vacant homes in your target area using thousands of public records. <\/span><span data-preserver-spaces=\"true\">You can also filter your search by <\/span><span data-preserver-spaces=\"true\">vacant homes that are high-equity<\/span><span data-preserver-spaces=\"true\">, which typically will give you an even better deal.<\/span><span data-preserver-spaces=\"true\"> And you can do all that from your phone by using PropStream\u2019s convenient mobile app&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">3. Find Homeowners With Pre-Foreclosures<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">Something some investors find off-putting about vacant homes is that<\/span><span data-preserver-spaces=\"true\"> they typically need at least some work. <\/span><span data-preserver-spaces=\"true\">And<\/span><span data-preserver-spaces=\"true\"> some homes will need a lot of work<\/span><span data-preserver-spaces=\"true\">, depending on how long they\u2019ve been vacant<\/span><span data-preserver-spaces=\"true\">.<\/span><span data-preserver-spaces=\"true\">&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">For<\/span><span data-preserver-spaces=\"true\"> those not into house flipping who want a discounted property in good condition<\/span><span data-preserver-spaces=\"true\">, pre-foreclosure is always a great option<\/span><span data-preserver-spaces=\"true\">.<\/span> <span data-preserver-spaces=\"true\">Pre-foreclosures will typically <\/span><span data-preserver-spaces=\"true\">be occupied<\/span><span data-preserver-spaces=\"true\">, <\/span><span data-preserver-spaces=\"true\">which means<\/span><span data-preserver-spaces=\"true\"> they will be well-maintained, but the owner-occupier may have a burning deadline to sell <\/span><span data-preserver-spaces=\"true\">in order to<\/span><span data-preserver-spaces=\"true\"> avoid full foreclosure.<\/span><span data-preserver-spaces=\"true\"> That is usually the case with pre-foreclosure homes that have <\/span><span data-preserver-spaces=\"true\">been put<\/span><span data-preserver-spaces=\"true\"> on the market. The pre-foreclosure time window is your golden opportunity as an investor.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Some pre-foreclosure homes will <\/span><span data-preserver-spaces=\"true\">be listed<\/span><span data-preserver-spaces=\"true\"> for sale in the usual way on Zillow, and other similar listing sites will <\/span><span data-preserver-spaces=\"true\">be marked<\/span><span data-preserver-spaces=\"true\"> as pre-foreclosure. Others may be available through your local real estate agent or <\/span><span data-preserver-spaces=\"true\">real estate<\/span><span data-preserver-spaces=\"true\"> auction house. But here\u2019s the thing: Those properties are on the market, and you can bet you\u2019ll <\/span><span data-preserver-spaces=\"true\">be facing<\/span><span data-preserver-spaces=\"true\"> stiff competition from other investors.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Off-market pre-foreclosure properties <\/span><span data-preserver-spaces=\"true\">are owned<\/span><span data-preserver-spaces=\"true\"> by people who have received a foreclosure notice<\/span><span data-preserver-spaces=\"true\">, <\/span><span data-preserver-spaces=\"true\">but <\/span><span data-preserver-spaces=\"true\">they<\/span><span data-preserver-spaces=\"true\"> may <\/span><span data-preserver-spaces=\"true\">not have decided<\/span><span data-preserver-spaces=\"true\"> what to do.<\/span><span data-preserver-spaces=\"true\"> They may still be working with their bank to try and stave off a full foreclosure, or they may be trying to choose the best way to sell their house as fast as <\/span><span data-preserver-spaces=\"true\">they can<\/span><span data-preserver-spaces=\"true\">.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">It\u2019s the latter category you should <\/span><span data-preserver-spaces=\"true\">be trying<\/span><span data-preserver-spaces=\"true\"> to reach out to as an investor, as you could offer a fast solution to their dilemma. <\/span><span data-preserver-spaces=\"true\">Some pre-foreclosure owners <\/span><span data-preserver-spaces=\"true\">just<\/span><span data-preserver-spaces=\"true\"> need the right offer to decide to sell immediately.<\/span><span data-preserver-spaces=\"true\">&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">You can find off-market pre-foreclosure homes by browsing your local county records or <\/span><span data-preserver-spaces=\"true\">even through<\/span><span data-preserver-spaces=\"true\"> local newspapers. <\/span><span data-preserver-spaces=\"true\">Obviously,<\/span><span data-preserver-spaces=\"true\"> poring over <\/span><span data-preserver-spaces=\"true\">records<\/span><span data-preserver-spaces=\"true\"> and newspapers isn\u2019t something everyone has time for. An online tool like PropStream <\/span><span data-preserver-spaces=\"true\">comes in<\/span><span data-preserver-spaces=\"true\"> very useful here: You can search for local pre-foreclosure homes by accessing the same local pre-foreclosure data within seconds.&nbsp;&nbsp;&nbsp;&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">4. Join an Investment Community<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">We\u2019ve mentioned heavy competition as the reality of real estate investing today. But that\u2019s only one side of sharing the market with other investors. <\/span><span data-preserver-spaces=\"true\">You might be surprised by how often investors will help others by sharing opportunities they <\/span><span data-preserver-spaces=\"true\">themselves<\/span><span data-preserver-spaces=\"true\"> don\u2019t have the bandwidth for or <\/span><span data-preserver-spaces=\"true\">that <\/span><span data-preserver-spaces=\"true\">simply<\/span><span data-preserver-spaces=\"true\"> aren\u2019t in the <\/span><span data-preserver-spaces=\"true\">right<\/span><span data-preserver-spaces=\"true\"> category for their investment strategy.<\/span><span data-preserver-spaces=\"true\">&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">This<\/span><span data-preserver-spaces=\"true\"> means <\/span><span data-preserver-spaces=\"true\">it\u2019s<\/span><span data-preserver-spaces=\"true\"> always a good idea <\/span><span data-preserver-spaces=\"true\">to join a local investment community<\/span><span data-preserver-spaces=\"true\">.<\/span><span data-preserver-spaces=\"true\"> You could end up landing a deal or two that you wouldn\u2019t have found yourself\u2014and get valuable advice <\/span><span data-preserver-spaces=\"true\">in the process<\/span><span data-preserver-spaces=\"true\">. A group like PropStream\u2019s Facebook user community connects real estate investors who share their experiences, top tips, and off-market investment opportunities.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Social media <\/span><span data-preserver-spaces=\"true\">generally is<\/span><span data-preserver-spaces=\"true\"> a great place to start building your network of fellow investors, although platforms like Meetup can also be a valuable resource, especially if you like meeting <\/span><span data-preserver-spaces=\"true\">with people in real life<\/span><span data-preserver-spaces=\"true\">.<\/span><span data-preserver-spaces=\"true\">&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">5. Network With Real Estate Professionals<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">This<\/span><span data-preserver-spaces=\"true\"> brings us to our final point: No one builds their success <\/span><span data-preserver-spaces=\"true\">completely<\/span><span data-preserver-spaces=\"true\"> alone. The more you can learn from others <\/span><span data-preserver-spaces=\"true\">who are<\/span><span data-preserver-spaces=\"true\"> on the same journey, the better. Someone <\/span><span data-preserver-spaces=\"true\">who\u2019s just<\/span><span data-preserver-spaces=\"true\"> starting <\/span><span data-preserver-spaces=\"true\">out<\/span><span data-preserver-spaces=\"true\"> today could be the next investor success story in a few <\/span><span data-preserver-spaces=\"true\">years\u2019 time<\/span><span data-preserver-spaces=\"true\">. You might even find a business partner in the future.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Fellow investors aren\u2019t the only people you should network with, either. <\/span><span data-preserver-spaces=\"true\">Get to<\/span><span data-preserver-spaces=\"true\"> know your local brokers, real estate agents, and property managers. Again, the purpose here is twofold.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">On the one hand, the better your relationship with local real estate professionals is, the more likely they are to contact you about potential off-market opportunities. On the other, deal or no deal, you will gain access to valuable industry insights that will help you approach potential leads with better strategy and confidence, manage your <\/span><span data-preserver-spaces=\"true\">own<\/span><span data-preserver-spaces=\"true\"> properties more effectively, and get an overall better sense of direction with your investments.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Final Thoughts<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">Armed with these essential strategies, you can <\/span><span data-preserver-spaces=\"true\">gain access to<\/span><span data-preserver-spaces=\"true\"> those coveted off-market real estate deals. Remember: To be successful as an investor, you <\/span><span data-preserver-spaces=\"true\">need to try out<\/span><span data-preserver-spaces=\"true\"> multiple approaches to see what works. You also need to know what you\u2019re looking for\u2014for example, an off-market deal may involve a property that <\/span><span data-preserver-spaces=\"true\">needs<\/span><span data-preserver-spaces=\"true\"> a lot of work, and you, as the investor, must always know whether you can take on the challenge.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">With the help of the right tools, like PropStream\u2019s real estate data platform, you can fine-tune your off-market property search so that you can focus on opportunities that will best align with your strategy and goals.<\/span><\/p>\n\n\n\n<div class=\"wp-block-group border border-gray-200 p-6 rounded-md has-slate-50-background-color has-background\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n    \n  <div \n    id=\"segemnt-view-event-block_624f52525847f\" \n    class=\"  \"\n    x-intersect:enter.once=\"\n      analytics.track('DoorLoop Blog Sponsor View', {\n        referrer: 'https:\/\/www.biggerpockets.com\/blog\/ways-to-find-off-market-deals-in-2024',\n              })\n    \">\n    \n  <\/div>\n  \n\n\n<h3 class=\"wp-block-heading has-text-align-left mt-0\"><strong>This article is presented by PropStream<\/strong><\/h3>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/08\/PS-Stacked-FullColorStandard-1024x565.png\" alt=\"\" class=\"wp-image-156988\" style=\"width:512px;height:283px\" width=\"512\" height=\"283\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/08\/PS-Stacked-FullColorStandard-1024x565.png 1024w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/08\/PS-Stacked-FullColorStandard-300x166.png 300w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/08\/PS-Stacked-FullColorStandard-768x424.png 768w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/08\/PS-Stacked-FullColorStandard-1536x848.png 1536w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2023\/08\/PS-Stacked-FullColorStandard-2048x1130.png 2048w\" sizes=\"auto, (max-width: 512px) 100vw, 512px\" \/><\/figure>\n\n\n\n<p>Use our robust, multi-sourced data to find off-market properties, save marketing lists, and close your next deal.<\/p>\n\n\n\n<p>Try a 7-day free trial today!<\/p>\n\n\n\n<div id=button-custom-event-block_63c9a33918e17 class='button-custom-event'>\n      <a href=\"https:\/\/www.propstream.com\/?utm_source=bpblog&#038;utm_medium=link&#038;utm_campaign=BP\" x-on:click=\"window.analytics.track(&#039;Sponsored Blog CTA Click&#039;, {\n      referrer: &#039;https:\/\/www.biggerpockets.com\/blog\/ways-to-find-off-market-deals-in-2024&#039;,\n    });\" class=\" btn-shape inline-block no-underline has-background has-theme-blue-background-color has-text-color has-white-color\" target=\"_blank\" rel=\"noopener\">Learn More About PropStream<\/a>\n  <\/div>\n\n\n\n<div class=\"wp-block-buttons is-layout-flex wp-block-buttons-is-layout-flex\"><\/div>\n<\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Off-market deals can be a huge source of great deals, if you can find them.<\/p>\n","protected":false},"author":613690,"featured_media":175064,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[4252],"tags":[],"class_list":["post-175060","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-deal-analysis"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/175060","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/613690"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=175060"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/175060\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/175064"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=175060"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=175060"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=175060"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}