Off-market deals utilizing financing and inspection

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I'm preparing to start my search for my first off market deal. I plan to use some strategies outlined in Anson Young's book "Finding and Funding Great Deals", including getting a list of target deals utilizing ListSource.com and direct marketing to these properties through both cold calling and direct mail. It appears that most investors that use this strategy tend to offer all cash and not require an inspection. However, I'll be using financing, and since I'm still a new to the game I want an inspection to ensure I'm not buying a total money pit that has cracks in the foundation or other worst case scenarios.

To those of you out there with experience in direct marketing for off market deals, do you see this as an issue to me achieving success? I was thinking I would pay all closing costs and purchase the property as-is to still make the deal sound sweeter. Either way I plan on giving it a shot.

Originally posted by @Shawn DiMartile :

I'm preparing to start my search for my first off market deal. I plan to use some strategies outlined in Anson Young's book "Finding and Funding Great Deals", including getting a list of target deals utilizing ListSource.com and direct marketing to these properties through both cold calling and direct mail. It appears that most investors that use this strategy tend to offer all cash and not require an inspection. However, I'll be using financing, and since I'm still a new to the game I want an inspection to ensure I'm not buying a total money pit that has cracks in the foundation or other worst case scenarios.  

To those of you out there with experience in direct marketing for off market deals, do you see this as an issue to me achieving success? I was thinking I would pay all closing costs and purchase the property as-is to still make the deal sound sweeter. Either way I plan on giving it a shot.

 If you want something off market, chances are it's off market for a reason. You need to find out this reason and the craft your approach so that your offer becomes valuable to that person. Think of it like this.... if this property was in good shape and an educated seller, why wouldn't they just put it on the market?


Answer: Probably because they want too much, it's in bad shape and won't pass inspection (for financing), or they don't want to sell it at this time (for whatever reason).

You don't bring much in terms of value to your offer if you're using a bank (slow) and doing inspections... so you're probably going to have to make up with it either in luck or price.

Matt makes good points. I believe there is always a way You can look for homes that are older, out of date, that a lender would finance (windows that close, running water). Knock on doors, make relationships, build trust, and land one. Buy the home, make the necessary updates as cost efficiently as possible, and flip it. Start small and roll that into the next rehab. Look at company structures and the tax implications as well. Also look into every possibility as far as financing goes. Scratch and claw and you will find your way