Real Estate Agent · Tucson, AZ · Member since 2020 · 103 posts · 64 votes
Hello to all fellow BPer's! I hope everyone is doing well and staying safe.
I wanted to create a post specifically about off market deals. Is this a system you have used before? How did you go about creating this system to find those off market deals? Do you find that off market deals become more profitable then traditional listings?
The reason I ask is because I am finding that all my ON market properties are way overpriced and would be a waste of time if I was to submit offers 100k less than asking (100k less than asking is an example of a duplex I just researched). I am still looking for my first property and would love to hear yall's stories on how you utilized off market deals and the systems you've created to help you find them.
Let me know if you are located in the Tucson area, I'd love to network.
Any and all comments are welcomed! Thanks for taking the time to comment and share.
Rental Property Investor · Smyrna, GA · Member since 2018 · 974 posts · 645 votes
5y
Hi @Cade Olof, we've utilized direct mail, cold calling and via current property managers to find off-market deals. There are deals on the MLS, but you need to make the offer and think creatively - for example: If you can change a 2BR to a 3BR or finish out a basement to make it a duplex. You could also keep track of expired listings and making offers on those via the MLS. The "system" we use in one market is to quarterly mail every multifamily owner in town - that has resulted in over a 25% response rate. This was with a very targeted list.
Rental Property Investor · Smyrna, GA · Member since 2018 · 974 posts · 645 votes
5y
Hi @Cade Olof, we've utilized direct mail, cold calling and via current property managers to find off-market deals. There are deals on the MLS, but you need to make the offer and think creatively - for example: If you can change a 2BR to a 3BR or finish out a basement to make it a duplex. You could also keep track of expired listings and making offers on those via the MLS. The "system" we use in one market is to quarterly mail every multifamily owner in town - that has resulted in over a 25% response rate. This was with a very targeted list.
The market in Tucson is very competitive right now. Most listings on the MLS are going at the asking price or higher. Joseph explained to you some ways to find off market deals. I have found some for my clients in the recent months, but it's been rare. Even in those deals, the buyers had to have to in the deal knowing that it is a sellers market and they can't be very demanding.
Real Estate Agent · Tucson, AZ · Member since 2020 · 103 posts · 64 votes
5y
Thank you both for your replies. I will take both into consideration moving forward. Joseph, is there a platform you use to actually make and send the mailers? If you could go into more detail I would appreciate it! @Joseph Firmin
Rental Property Investor · Smyrna, GA · Member since 2018 · 974 posts · 645 votes
5y
Sure. For small sets, we just do it by hand and enlist the kids to lick the envelopes. For larger sets there are MANY you could use such as Lob (my current preference). Google "best direct mail service" and you'll find plenty to vet and interview.
Despite the fact that there is a bit of scarcity in Tucson, but always think out of box. Focus on what will increases your productivity. Yes, the sellers in Pima County are becoming Greedier than ever, but the circumstances changes on daily bases which will dictate sellers to be more flexible. Look at Pima County Rural area, Manufactured Homes, Multifamily opportunities, FSBO over 90 days, Expired listings, and the best yet Drive4Dollar.
Thank you for your comments and advice. FSBO and expired listings are categories I have not done much research in yet. Do you Ari have a system you use specifically when you drive4dollars?
That all depends on your budget and how much time you want to spend on your marketing channels.
I recommend people first starting out (this includes myself) to start out Driving for dollars and cold calling or just knock on their door a speak with them. I recommend this for a few reasons first this will help you learn the area your working and you will get the best list of potential leads (because no one will have the same list as you and they all will have some kind of distress). Deal Machine and Batch Driven are both great driving for dollars apps you can use.
For cold calling You can manually dial after you skip trace the to get you numbers to dial would be the cheapest way or there are many different dialers you can use I use Mojo but I'm looking into others now. Keep in mind skip tracing and the Dialer can start to add up very fast depended on how many properties you skip trace.
So if you're tight on a budget when you first start I recommend Driving for dollars (with or without an app at first) then just knock on the door and talk to them leave a note if they don't answer.
If you got a good budget starting out there is a lot of different channels you can go. I live in Tucson as well if I can help you in any way please let me know
Thank you both for your comments... I believe that will be my next step. Cracking down on my desired neighborhood and drive4dollars. Thanks again for your comments. @Saxxon Rybski I would be interested in connecting. Like meeting local investors!