Analyzing Off Market Deals

9 Replies

Originally posted by @Reginald A. Shelby II :

Analyzing off market deals, if I’m correct, requires me to find the information or have the resources to find pertinent information to analyze the deal right?

Whoever gives you the deal must provide you the details 

 

@Reginald A. Shelby II sometimes your local realtor network will have tools available you can use for independent value analysis. In my market we have SABOR. SAN ANTONIO BOARD OF REALTORS. Gives a "lite" access to MLS in our area. I've used it before for my deal evaluation starting out. There's also free software available redfin, realtor.com, zillow, trulia as well.

@Reginald A. Shelby II If you're working with any kind of reputable wholesaler they will provide you with comps and detailed property information. On your end, definitely utilize your local MLS for comps if you can get access to it. Zillow, Redfin, Realtor.com, etc. are OK starting points but don't use them exclusively to evaluate deals.

Wholesaling (assuming this is the off market deal source we are referring to) is unregulated (at least in our market)

So this means they aren't bound to any sort of "code of ethics". As much as I believe all people are inherently good, you still really shouldn't believe anything you are told. Most of the time the "comps" and "ARVs" provided are fluffed up. They don't want inspections because the seller doesn't know they're not the actual buyer, etc. 

- Sometimes, you will get a really good wholesaler who provides great deals, and honest valuations, etc. However, you need to have the knowledge or resources to verify and spot this when you see it.

At minimum: Need to thoroughly check out the property, run your own comps, ARVs, rehab estimates, and get a Warranty Deed.


To answer your question as directly as possible: 

For MLS deals: Buyer/Seller agents help walk through due diligence.

For "off market": You're on your own (don't trust the seller for everything), or get a buyer agent to help you.