Finding Off Market Deals - NOW WHAT?

Question

Hello,

Can someone point me to some educational material on executing off-market deals? Most of the content I find speaks to FINDING deals but little on next steps once you've got a willing person on the other side of the deal?

We're very close to actionable next steps towards our first multifamily owner occupied. West of Cleveland Ohio. Lakewood, Rocky River to be specific. Been stacking dry powder and ramping up education where possible.

Hypothetically, after successful skip tracing, door knocking, and cold "calls", once we find a potential deal. Can someone walk me though getting the deal done?

I do have a close friend who is a realtor if that would be a lever to pull on to help simplify...

Appreciate any guidance.

Brian

Andrew Weiner · Answer

Do you want to whole sale the deal or buy it outright? If you are buying it directly you can send a purchase agreement, I’m sure you can find out online, and then get started with a title company. This is a bit over simplified but if you have a friend who is a realtor they can probably recommend a title agency. If you are financing then there are a few more steps but the lender should tell you what you need to do.

If you want to wholesale it then I have to say I’ve never done it personally but I think it’s not so far off, just you need to make sure you have the right to assign your purchase agreement. I’m sure someone has some documents posted online.

Nicholas Misch · Answer

As previously stated, if you are going to be holding this property as a rental your agent friend (as long as they are licensed in the state) can help run the deal through the brokerage which will give you legal protections (I am not a lawyer) and also the title work with their title company. Just make sure you agent has investment multifamily experience or at a minimum has helped clients with multi-family as many things can come up an experienced agent can guide you with.

If you are looking to wholesale you just need to make sure you have a good contract (I always suggest its been looked over by a lawyer) and a title company who works with investors and off market properties.

Bjorn Ahlblad · Answer

@Brian Waller Welcome to BP! You could be referring to FSBO? Or a larger property where tha seller does not want to disturb the tenants and has hired a broker to sell the property quietly. Either way if it were me I would hire the realtor friend and offer him/her as a buyer's broker and pay them 2-3% of the deal. I would expect them to do a lot of the work. LOI, arrange for documents, leases, financials, Estoppel certs, inspections, closing docs etc. Or you can do it all yourself and hope for the best!

Finding Off Market Deals - NOW WHAT?

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