How are you finding off-market distressed properties before they hit public records?

Question

Lately, I’ve been diving deep into how investors find distressed properties before they officially go into pre-foreclosure. It seems like once a foreclosure hits public records, there’s already a flood of competition.

I know some people use direct mail, driving for dollars, or MLS alerts, but I’m curious—has anyone had success finding these deals before they go public?

Some angles I’ve been looking into:- Tracking tax liens and utility delinquencies to spot struggling homeowners.- Checking divorce, bankruptcy, and probate filings for motivated sellers.- Identifying absentee landlords who are behind on mortgage payments but haven’t listed yet.

What’s working for you right now? Are you seeing more competition, or is there still room to find good deals early?

Stephen Morales · Answer

Hey @Daniel GeneralovClosed on plenty of those, with pulling list of them and cold calling. You can pull a list of tax liens and pre-foreclosures for free if you look in the right spots. Here's the other issue you have though, everyone else is targeting those same list. So even if you get them through preliminary means...you're still not the first bird to try and get that worm. It's all about working the numbers. Other than creating stack signals for existing lead types I think you have a pretty good hold on how to get ahead of the pack.

Daniel Generalov · Answer

Love your approach—totally agree that triangulating multiple signals is the key. Relying on just one data source, like tax liens or pre-foreclosure filings, often means being too late.

Lately, I’ve been experimenting with layering different distress signals to catch properties earlier in the cycle. Combining mortgage delinquencies with local economic shifts, like tracking layoff surges, has been revealing some interesting trends. I’ve also been looking at utility shutoffs alongside absentee landlord distress patterns, as well as identifying code violations before they trigger official public records. It’s been an interesting process refining what actually works versus what just creates noise.

What’s been the most predictive early-stage signal in your experience? Are there any overlooked indicators you’ve found to be reliable? Always looking to sharpen the process and exchange insights with others deep in the space.

Andres Montbrun · Answer

I’ve refined my approach by building a network of local insiders and using early-stage data feeds that tap into preliminary county info before it hits mainstream records. It’s less about relying on one indicator and more about triangulating subtle signals from different sources—both tech and on-the-ground intel—to identify the right opportunities early. Curious, what’s been your secret sauce for sussing out these leads?

How are you finding off-market distressed properties before they hit public records?

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