How do you find off-market deals?

Question

I'm really interested in the steps people go through to find off-market multifamily deals. If you were starting off in a brand new market completely from scratch, with no relationships with brokers and no knowledge of the market whatsoever, what would you do to find an off-market deal?

My assumptions are:

1. Capital is not a constraint - you have some money saved up and a rich uncle who can invest as an LP.

2. You don't have CoStar or any software that would allow you to search properties or look up owner info.

What would be your approach, step-by-step? Any insight would be a huge help!

Account Closed · Answer

@Marc Rutzen

We Currently Prospect for off market deals a variety of ways.

1. Cold Calling- Using the Mojo Dialing System- We enter Pre-Foreclosure, Absentee Owners and tax delinquent.

2. Direct Mail - using same lists above, Remine in MLS, public records, and/or buy a list

3. B2B Partnership Program with Wholesalers - We work with many local wholesalers to provide win/win partnerships. One thing I do is provide many wholesalers Free CMA's for leads their working on or verify their comps for them in return for 1st crack at their deals and dead leads

4. Driving for Dollars- We had an agent/investor on our team just last week buy a vacant looking property the other day where she drove by the home, looked it up on the county accessor site, found owner, knocked on their door, offered them cash for house, followed up 6 months later after originally offer was declined and bought it.

5. General Networking- Make sure everyone you know. KNOWS your looking for investment properties. The next time they hear someone saying I just really need to sell my home I am going through financial trouble. YOU want to be the person they say can help that person.

Michael G. · Answer

Depends on what you're looking for. Although take my words with a grain of salt as I'm just starting out. As for me i'm looking for smaller deals to get my feet wet. Driving for dollars is every wholesalers start I think. Getting boots on the ground and finding the houses that are vacant. Then locating the owner through skip tracing services and cold calling them to see if they want to sell. Also going to the county recorders office and finding homes that are pre-foreclosure, which is free. Probates can usually be found through local obituaries.

Tim Yusubov · Answer

Hello @Marc Rutzen. I believe I am one of those people that you are acquiring about. I would be more than happy to share my process (good or bad for you to decide) but I definitely have the answers you are looking for.

Sam Shueh · Answer

Pay for leads. Often the off the market deals the asking price way over the market.

Mitchell Luban · Answer

@Marc Rutzen It has been my experience that just like anything else it is who you know not what you know. I have found that being consistent in attending meet up events and networking events has been a great way to find off market deals. Along with finding good wholesalers who don't suck all the profit from the deals (which in my market we don't have any "good" wholesalers.)

Also being intentional about networking with some of the agents in your area that do a fair amount of business in the investment space. If they are good at what they do they will probably have some off market deals or at least be able to send them along when they do get them. My top two performing properties were purchased from other agents before hitting the market.

Ed Emmons · Answer

Since you are a broker serving multiple markets, what specifically don’t you already know or is this a hypothetical question?

How do you find off-market deals?

How do you find off-market deals?

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