Off Market Deal Sourcing Strategies
Investor · Phoenix, AZ · Member since 2017 · 261 posts · 143 votes
Off Market Deal Sourcing Strategies
Most Popular Reply
Wale LawalBusiness Member
Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votesFinding off-market commercial real estate deals is not fundamentally different from sourcing listed deals, but there are a few tactics you can follow to find more opportunities. Generally, investors must be diligent in their outreach and communications, keeping their ears to the ground for deals that fit their profile.
1. Build Strong Broker Relationships
Buyers can find off-market commercial real estate deals and avoid commissions altogether when the right listings pop up organically, but brokers can also be a strong source of unlisted deals. Due to their expansive transactional networks, brokers are constantly in touch with owners seeking to sell, as well as other brokers. Beyond relationships, a broker’s extensive digital tool set can also pinpoint opportunities that are not formally listed.
As your firm continues to grow and transact in the market, the relationships you forge can carry significant value. Proving that your firm is not only positioned for growth, but prepared to execute, can go a long way. Brokers are incentivized by sales, meaning they will work diligently to find properties for interested buyers.
2. Forge Strong Industry Relationships
Beyond brokers, other industry relationships can also play a meaningful role in sourcing off-market deals. From contacts at other firms, to contractors, title companies, property managers, and legal or environmental teams that might work with sellers, staying in touch can prove beneficial.
3. Property Websites & Area Building Databases
By definition, they won’t be publicly listed on the most popular listing services, but it’s possible to find off-market commercial real estate deals on other listing websites like Zillow. Even if properties are not designated as “for sale”, these databases might hold the most recent sale date, price, square footage, and other essential details. While not necessarily a scalable tactic for institutional investors, this is another way to find commercial real estate deals off-market.
4. Contacting Owners Directly
It’s not uncommon for real estate investors to notice appealing buildings, reach out to owners and make an offer. Depending on the markets you’re investing in, this may or may not be a viable strategy. Because this approach hinges on another’s approval, it might be more effective for owner/operators than institutional investors, who tend to be more calculated and systematic in their timing. Some owners might entertain the idea, but it’s also important to note that not all owners are in the market to sell, making rejections relatively likely.
5. Direct Mail
Unlike online research and cold calling, sending direct mail to properties owners whose buildings meet your criteria can cast a wider net. For this reason, direct mail is the most scalable of these three outreach strategies. Because marketing companies can shoulder the burden of printing and distributing these mail pieces, the hard work lies in building targeted lists.
All the best!
NETWORTH BUILDERS5236 Reviews
13 Replies
- Member since 2022 · 4 posts · 4 votes4y
Hey Josh, I am an active investor in the DFW Market and I strive heavily on sourcing off-market deals. I will find these deals by obtaining a list and text blasting the owners (Our bread and butter.) Or I will drive for dollars and call the owners directly. You have to target the right areas and motivated sellers to make a deal happen. Be persistent and personable with the sellers!
- Investor · Phoenix, AZ · Member since 2017 · 261 posts · 143 votes4yJeremy,
Quote from @Jeremy Green:
Hey Josh, I am an active investor in the DFW Market and I strive heavily on sourcing off-market deals. I will find these deals by obtaining a list and text blasting the owners (Our bread and butter.) Or I will drive for dollars and call the owners directly. You have to target the right areas and motivated sellers to make a deal happen. Be persistent and personable with the sellers!
Thank you for sharing.
Where are you obtaining lists? (Costar, brokers)
What is your process in contacting sellers? Are you speaking with them for months, taking them out for lunch etc?
My big question is how do you identify a motivated seller? - Investor · Atlanta, GA · Member since 2017 · 174 posts · 104 votes4y
Building and nurturing relationships with regional brokerages/brokers is another great way of being sent all offmarket deals they get. 7 out of 10 commercial properties we acquired in the last 15 months were received this way.
- 4yRonald RohdePro MemberAttorney · Dallas, TX · Member since 2016 · 5k+ posts · 2k+ votes
We make a list of every industrial property that fits our criteria. Then skip trace, mailers, flyers, phone calls, texts, and emails get the deal done.
- Investor · Tucson, AZ · Member since 2017 · 394 posts · 178 votes4y
@Josh Oaten I think it can be effective, but typically the owners of larger properties are more than likely going to use brokers. I have used mailers and cold calling but to date have really only had a semblance of success on smaller multi- 20 units and less. For larger multi (50 plus doors) I would recommend going through brokers, but I hope you prove me wrong! Good luck.
- 4yWale LawalBusiness MemberReal Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
Finding off-market commercial real estate deals is not fundamentally different from sourcing listed deals, but there are a few tactics you can follow to find more opportunities. Generally, investors must be diligent in their outreach and communications, keeping their ears to the ground for deals that fit their profile.
1. Build Strong Broker Relationships
Buyers can find off-market commercial real estate deals and avoid commissions altogether when the right listings pop up organically, but brokers can also be a strong source of unlisted deals. Due to their expansive transactional networks, brokers are constantly in touch with owners seeking to sell, as well as other brokers. Beyond relationships, a broker’s extensive digital tool set can also pinpoint opportunities that are not formally listed.
As your firm continues to grow and transact in the market, the relationships you forge can carry significant value. Proving that your firm is not only positioned for growth, but prepared to execute, can go a long way. Brokers are incentivized by sales, meaning they will work diligently to find properties for interested buyers.
2. Forge Strong Industry Relationships
Beyond brokers, other industry relationships can also play a meaningful role in sourcing off-market deals. From contacts at other firms, to contractors, title companies, property managers, and legal or environmental teams that might work with sellers, staying in touch can prove beneficial.
3. Property Websites & Area Building Databases
By definition, they won’t be publicly listed on the most popular listing services, but it’s possible to find off-market commercial real estate deals on other listing websites like Zillow. Even if properties are not designated as “for sale”, these databases might hold the most recent sale date, price, square footage, and other essential details. While not necessarily a scalable tactic for institutional investors, this is another way to find commercial real estate deals off-market.
4. Contacting Owners Directly
It’s not uncommon for real estate investors to notice appealing buildings, reach out to owners and make an offer. Depending on the markets you’re investing in, this may or may not be a viable strategy. Because this approach hinges on another’s approval, it might be more effective for owner/operators than institutional investors, who tend to be more calculated and systematic in their timing. Some owners might entertain the idea, but it’s also important to note that not all owners are in the market to sell, making rejections relatively likely.
5. Direct Mail
Unlike online research and cold calling, sending direct mail to properties owners whose buildings meet your criteria can cast a wider net. For this reason, direct mail is the most scalable of these three outreach strategies. Because marketing companies can shoulder the burden of printing and distributing these mail pieces, the hard work lies in building targeted lists.
All the best!
NETWORTH BUILDERS5236 Reviews - Real Estate Consultant · Lawrence, MA · Member since 2020 · 216 posts · 157 votes4y
Real Penned Letters have been a staple of our clients who market to larger MFR and commercial properties. Followed up with a Professional style letter
- Investor · Phoenix, AZ · Member since 2017 · 261 posts · 143 votes4yOn market or pocket listings?
Quote from @Account Closed:
Building and nurturing relationships with regional brokerages/brokers is another great way of being sent all offmarket deals they get. 7 out of 10 commercial properties we acquired in the last 15 months were received this way.
What are you doing exactly to build and ‘nurture’ your relationships?
- Investor · Phoenix, AZ · Member since 2017 · 261 posts · 143 votes4yRonald,
Quote from @Ronald Rohde:
We make a list of every industrial property that fits our criteria. Then skip trace, mailers, flyers, phone calls, texts, and emails get the deal done.
Is there a method out of these you find works best? - Investor · Phoenix, AZ · Member since 2017 · 261 posts · 143 votes4yColby,
Quote from @Colby Fryar:
@Josh Oaten I think it can be effective, but typically the owners of larger properties are more than likely going to use brokers. I have used mailers and cold calling but to date have really only had a semblance of success on smaller multi- 20 units and less. For larger multi (50 plus doors) I would recommend going through brokers, but I hope you prove me wrong! Good luck.
Thank you for your insight. How is your traction going in Tucson. Is the market getting difficult as Phoenix is? - Investor · Phoenix, AZ · Member since 2017 · 261 posts · 143 votes4yWale,
Quote from @Wale Lawal:
Finding off-market commercial real estate deals is not fundamentally different from sourcing listed deals, but there are a few tactics you can follow to find more opportunities. Generally, investors must be diligent in their outreach and communications, keeping their ears to the ground for deals that fit their profile.
1. Build Strong Broker Relationships
Buyers can find off-market commercial real estate deals and avoid commissions altogether when the right listings pop up organically, but brokers can also be a strong source of unlisted deals. Due to their expansive transactional networks, brokers are constantly in touch with owners seeking to sell, as well as other brokers. Beyond relationships, a broker’s extensive digital tool set can also pinpoint opportunities that are not formally listed.
As your firm continues to grow and transact in the market, the relationships you forge can carry significant value. Proving that your firm is not only positioned for growth, but prepared to execute, can go a long way. Brokers are incentivized by sales, meaning they will work diligently to find properties for interested buyers.
2. Forge Strong Industry Relationships
Beyond brokers, other industry relationships can also play a meaningful role in sourcing off-market deals. From contacts at other firms, to contractors, title companies, property managers, and legal or environmental teams that might work with sellers, staying in touch can prove beneficial.
3. Property Websites & Area Building Databases
By definition, they won’t be publicly listed on the most popular listing services, but it’s possible to find off-market commercial real estate deals on other listing websites like Zillow. Even if properties are not designated as “for sale”, these databases might hold the most recent sale date, price, square footage, and other essential details. While not necessarily a scalable tactic for institutional investors, this is another way to find commercial real estate deals off-market.
4. Contacting Owners Directly
It’s not uncommon for real estate investors to notice appealing buildings, reach out to owners and make an offer. Depending on the markets you’re investing in, this may or may not be a viable strategy. Because this approach hinges on another’s approval, it might be more effective for owner/operators than institutional investors, who tend to be more calculated and systematic in their timing. Some owners might entertain the idea, but it’s also important to note that not all owners are in the market to sell, making rejections relatively likely.
5. Direct Mail
Unlike online research and cold calling, sending direct mail to properties owners whose buildings meet your criteria can cast a wider net. For this reason, direct mail is the most scalable of these three outreach strategies. Because marketing companies can shoulder the burden of printing and distributing these mail pieces, the hard work lies in building targeted lists.
All the best!
Thank you for your insight and tips!! - 4yWale LawalBusiness MemberReal Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
Quote from @Josh Oaten:
Wale,Quote from @Wale Lawal:
Finding off-market commercial real estate deals is not fundamentally different from sourcing listed deals, but there are a few tactics you can follow to find more opportunities. Generally, investors must be diligent in their outreach and communications, keeping their ears to the ground for deals that fit their profile.
1. Build Strong Broker Relationships
Buyers can find off-market commercial real estate deals and avoid commissions altogether when the right listings pop up organically, but brokers can also be a strong source of unlisted deals. Due to their expansive transactional networks, brokers are constantly in touch with owners seeking to sell, as well as other brokers. Beyond relationships, a broker’s extensive digital tool set can also pinpoint opportunities that are not formally listed.
As your firm continues to grow and transact in the market, the relationships you forge can carry significant value. Proving that your firm is not only positioned for growth, but prepared to execute, can go a long way. Brokers are incentivized by sales, meaning they will work diligently to find properties for interested buyers.
2. Forge Strong Industry Relationships
Beyond brokers, other industry relationships can also play a meaningful role in sourcing off-market deals. From contacts at other firms, to contractors, title companies, property managers, and legal or environmental teams that might work with sellers, staying in touch can prove beneficial.
3. Property Websites & Area Building Databases
By definition, they won’t be publicly listed on the most popular listing services, but it’s possible to find off-market commercial real estate deals on other listing websites like Zillow. Even if properties are not designated as “for sale”, these databases might hold the most recent sale date, price, square footage, and other essential details. While not necessarily a scalable tactic for institutional investors, this is another way to find commercial real estate deals off-market.
4. Contacting Owners Directly
It’s not uncommon for real estate investors to notice appealing buildings, reach out to owners and make an offer. Depending on the markets you’re investing in, this may or may not be a viable strategy. Because this approach hinges on another’s approval, it might be more effective for owner/operators than institutional investors, who tend to be more calculated and systematic in their timing. Some owners might entertain the idea, but it’s also important to note that not all owners are in the market to sell, making rejections relatively likely.
5. Direct Mail
Unlike online research and cold calling, sending direct mail to properties owners whose buildings meet your criteria can cast a wider net. For this reason, direct mail is the most scalable of these three outreach strategies. Because marketing companies can shoulder the burden of printing and distributing these mail pieces, the hard work lies in building targeted lists.
All the best!
Thank you for your insight and tips!!Most welcome!
NETWORTH BUILDERS5236 Reviews - 4yRonald RohdePro MemberAttorney · Dallas, TX · Member since 2016 · 5k+ posts · 2k+ votes
Quote from @Josh Oaten:
Colby,Quote from @Colby Fryar:
@Josh Oaten I think it can be effective, but typically the owners of larger properties are more than likely going to use brokers. I have used mailers and cold calling but to date have really only had a semblance of success on smaller multi- 20 units and less. For larger multi (50 plus doors) I would recommend going through brokers, but I hope you prove me wrong! Good luck.
Thank you for your insight. How is your traction going in Tucson. Is the market getting difficult as Phoenix is?All of them, seriously. You attack from all angles to stay top of mind...
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