New York, NY · Member since 2016 · 27 posts · 4 votes
Hello all,
I just started considering real estate investment (rental income) as my future. I have a question that might sound pretty simple for most of you here. Yesterday I was watching "Flip or Flop" and they were interested in purchasing (all cash) a property that was "off market" before it go to the public sale on the next day. How does that work? Where/Who has access to "off market" properties? Are they always cash transactions?
Real Estate Agent · Orlando, FL · Member since 2015 · 127 posts · 39 votes
10y
Send "yellow" letters to addresses you have identified as an interest to you. Check out my recent forum post - I asked the same question and got some helpful responses! :)
Real Estate Agent · Orlando, FL · Member since 2015 · 127 posts · 39 votes
10y
Send "yellow" letters to addresses you have identified as an interest to you. Check out my recent forum post - I asked the same question and got some helpful responses! :)
Investor · Coplay, PA · Member since 2015 · 404 posts · 315 votes
10y
I do not have any of my properties listed for sale. I would sell any of them at any time. Make an offer and if I accept, how you bring the money to the table is no concern of mine.
Unless I was expecting the property to sell for more then the listing price, which day it sold on, does not matter.
Send "yellow" letters to addresses you have identified as an interest to you. Check out my recent forum post - I asked the same question and got some helpful responses! :)
Investor · Big Spring, TX · Member since 2016 · 140 posts · 59 votes
10y
The couple on that show are both real estate agents so they do have an advantage. The only difference between off market and on market is that the seller hasn't advertised it yet. If you want to buy an off market property, I would suggest making yourself known to the agents in the area that you want to buy. Also, you could send out yellow letters. But I would use the networking approach first. It doesn't cost you anything to introduce yourself to people.
The couple on that show are both real estate agents so they do have an advantage. The only difference between off market and on market is that the seller hasn't advertised it yet. If you want to buy an off market property, I would suggest making yourself known to the agents in the area that you want to buy. Also, you could send out yellow letters. But I would use the networking approach first. It doesn't cost you anything to introduce yourself to people.
Thank you so much for your response, very informative. I recently got my NY real estate license, but I work only with rentals, because that's how new agents start in the city. However I will definitely start networking with RE agents outside the city for this purpose.
The couple on that show are both real estate agents so they do have an advantage. The only difference between off market and on market is that the seller hasn't advertised it yet. If you want to buy an off market property, I would suggest making yourself known to the agents in the area that you want to buy. Also, you could send out yellow letters. But I would use the networking approach first. It doesn't cost you anything to introduce yourself to people.
Thank you so much for your response, very informative. I recently got my NY real estate license, but I work only with rentals, because that's how new agents start in the city. However I will definitely start networking with RE agents outside the city for this purpose.
How does that work? You only work with rentals? They are also a good source of off-market supply. You may have the potential to buy from a landlord.
Yes, I only work with rentals because the process to rent in the city is very complex and it is in high volume. My license allows me to sale or rent, like any other state, but here it is suggested to start with rentals to learn the market and neighborhoods.
Do you think houses listed on Trulia and other popular websites as "rehab" are good for a start?
Investor · Big Spring, TX · Member since 2016 · 140 posts · 59 votes
10y
I don't like using Trulia in Texas. The information is never correct. Zillow isn't much better either. But if your trying to stay off-market you don't need to use the real estate apps. When you set up a rental, ask the landlord if he has any properties that he wants to sell. Easy question that most people are afraid to ask.
You are right, that make sense... My main concern is that I might need a loan, because I don't have cash to present "cash offers". I even thought about FHA loan and hold the property for at least 1 year... (not sure how right or wrong this is). Also thought about hard money loans, but since I have no experience, the rehab could take longer than planned and I would end with massive interest...
Thank you so much for your help and participation so far.
I will start a new forum regarding this concern. My doubts can be other newbies' doubts too.
Investor · Big Spring, TX · Member since 2016 · 140 posts · 59 votes
10y
Some questions you need answers to are as follows;
What is your credit score?
How much money do you have available through 401k, or collateral?
Do you know anyone that you can ask for the money? Friends or family that may have the money sitting in their 401k. How bad would you feel if you couldn't recoup all of the funds from the flip? Also, would you give up and say it's not for you if you lose money, or would you get another property and try to get some of the money back you lost on the first deal.
As far as getting money, you can do a FHA if it's going to be your primary residence (multi-unit) or a 203K which is also FHA but gives you funds for rehab. You should be able to find a bank that would lend you up to 80% LTV at around 6% interest which as a realtor you should be able to run comps on the properties you are interested in.
You will also need to find a handyman or contractor, depending on the scope of the work, that can get the work done quick so you don't have to pay to much in interest.