What does "off the markets" mean

4 Replies

A (agent/friend of the seller) I have been communicating with is requesting LOI & POF when I start asking specifics about his property. My question was why his rent roll didnt add up.

He says he needs those forms because he is not listed on the market and doesn't want to bother the seller with non-serious buyers.

I don't have the personal funds or enough investors on board to finance outright.  I was thinking an MLO might work nice. They are asking 3.7mil with a monthly net income $35540

What do you think BP. What does it mean to be "off market"

@Jarrod Gregory

Off Market simply means a property is not listed on the MLS or other comparable type listing service. That isn't uncommon for a commercial property. Most of them are not listed.

It is also not uncommon for agents listing high value (> $1mm) properties to ask for POF up front. (LOI tends to be more geared towards commercial properties, whereas the POF request will apply to both residential and commercial.) It weeds out the tire kickers and the people who just want to see the property out of curiosity, without even the intention of noticing whether or not it has tires.

As for your comment about "thinking an MLO might work nice", I have no idea what you're referring to with that acronym.  The only MLO I'm familiar with is a Mortgage Loan Originator.  However, you said you can't finance it outright, so what does a mortgage loan originator buy you?

Originally posted by @Jarrod Gregory :

A (agent/friend of the seller) I have been communicating with is requesting LOI & POF when I start asking specifics about his property. My question was why his rent roll didnt add up.

He says he needs those forms because he is not listed on the market and doesn't want to bother the seller with non-serious buyers.

I don't have the personal funds or enough investors on board to finance outright.  I was thinking an MLO might work nice. They are asking 3.7mil with a monthly net income $35540

What do you think BP. What does it mean to be "off market"

An "off market" listing means that the property subject to sale is not on the MLS. Its sometimes called a "pocket listing". He probably did this so as to avoid payng higher commission fees to a Broker and is likely giving his agent friend less than he would have to normally pay. If he's a serious seller then he should be providing answers to prospective buyers.

Regarding the rent roll, it probably didn't add up because he did not want to report a higher passive income over the years, in order to pay less taxes OR probably just wants to make the deal sound more appealing than it is. 

One rule that I go by is NEVER EVER believe the Seller's numbers until they are completely verified. 

Best of Luck.

As an agent , I'm not getting too involved with a"buyer" for a $3.7m property that can't show the ability to buy, and the seller definitely doesn't want to be bothered with them.  And a master lease option (suggested by guru types for people without the proper resources)might sound good to you, since you don't have the money or the credit, but to most owners it will be "huh, are you serious?....GTFO".

That makes sense. I don't want to waste anybody's time. I will be there someday soon.  

Thanks for your time BP