Best way to target off market deals?

18 Replies

Hey I am an agent that works with numerous investors. I look through the MLS for deals but there isn't a lot out there. What would be the best way to find off market deals? I'd be open to hiring someone to convert for me or use FB ads. I know off market is a huge pipeline and would benefit my clients a lot. Any feedback or advice is appreciated, thanks!

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Best way to find motivated sellers is to purchase lists and compile lists for high equity, absentee owners, 60-90-120 days late on mortgage, pre-foreclosure, delinquent taxes, water cutoff, code violation, evictions, probate, divorce, etc. and mail or cold call.

Other methods are driving for dollars, door knocking, wholesalers, craigslist, Realtors, FSBO sites, expired listings, put out bandit signs, billboards, newspapers, other offline publications.

You can use pay per click/adwords, facebook, Linkedin, Youtube, and other forms of online and social media marketing.

@Caleb Brown Look for “for rent” signs or rental ads and call them. Let them know you’re an investor and you’re curious if they’ve considered selling. We bought a 4 plex this way a couple months ago. There are lots of landlords that want to get out of the game, and vacancies are high stress times when they might just want to offload the problem. In our situation with the 4 plex, the owner is close to retirement and wants to start selling them off. It works!

@Matt Pastier

That’s a brilliant idea! I’ll give a call to some tomorrow. What if they have property management?

@Caleb Brown You could look up the address on the auditors website and see who owns it. From there, you could send them a letter, try to find them on Facebook, etc. You could also let the PM know you are interested in buying and see if they’ll connect you with the owner or relay the message for you. If they won’t just move on to the next one.

@Caleb Brown Mail has been effective for many investors. You do however need to be careful that the list you choose isn't the same one that everyone else is mailing to. Consider working with a list broker who can make suggestions. Many brokers can also add phones and emails to a list - whether you already have it or get it from them.

Some lists to consider in addition to the usual Absentee Owner with Equity are; Seniors with Long-Time Ownership and Owners with Low Financial Stability Scores. These have the advantage of being new and not over-mailed as of yet.

As for the message. Keep it about the seller and the benefits do you bring to the table. Maybe start with "Selling your home may be easier than you expect" then list out why you are better than the traditional listing with a realtor. "No open houses with strangers traipsing through your home" can be a big one. I wrote a blog on letters that focus on Seniors, but can really apply to others as well.  Ideas for benefits driven letters

@May Emery

Great advice. I know someone recommended DataZipp, you can select different categories and pick people who are struggling others their mortgage.

@Caleb Brown all of that information is free from your local title company. Tell them your precise criteria or sort yourself in excel. I find I’d rather have too much info in my lists and sort through what I want. This helps tailor a very specific mailer.

Get in touch with other brokers who deal in the property type your investors are looking. If you have a buyer, and they dig up a seller, off market deals for clients gives you the “edge up” and raises your value in the clients eyes.

Depending on what I’m focusing on in a given day I find clients by personalized mailers using a mail merge off my excel list. This allows each letter that prints off to have the actual owners name and address so it’s more personal. When I send a letter saying, “Hello XXx, I am a local investment real estate broker and have a client who has identified your property at XXxXxX as of interest. If you have any interest in seller or determine the value of your property please reach out.”

If I can make it any more personal without being overbearing I will. My last one referred to “my client is looking for a duplex to house their elderly mother and are ready to write.” In actuality I have three buyers for the property type and I’ve been writing offers all week to dig up a good value. If it doesn’t work for one client, I make sure to keep good rapport with sellers and to circle back around with another.

As someone else mentioned, I cold call owners who have comfortable equity positions and quantify things for them real time. It’s taken a lot of practice to be quick on the phone but I find my knowledge and ability to elaborate and do quick math keeps potential sellers on the phone.

@Caleb Brown you should try out listsource. Purchase list from them and start sending direct mails. If you're limited on budget, try to skip trace the contact numbers and start cold calling. For skiptracing, I use BatchSkipTracing.

Listsource might get a little confusing with all the options. Here's the list criteria I use for my direct mail campaign and it's working really great.