The Elusive Off-Market Property: How do I find one?

The BIG NEWS from our last blog (Why should I visit my market before I get a deal?) was that we were brought our first “off market property!” This is a huge step for an investor because it signifies agents/brokers trust you enough to bring you a deal before others. It signifies the positive develop of relationships in your market. Most off all, it gives you the investor, an opportunity to analyze and potentially make an offer before your competition.

We want to share with you our lessons learned and how to acquire off market properties.

The key to finding off market properties is simple, yet not easy: you must spend the time networking and building relationships, particularly with agents and brokers. Agents and brokers have connections to sellers in the market and will bring those “pocket listings” to potential buyers before formally listing them on the Multiple Listing Service (MLS).

Sustained networking and relationship building over time. Receiving off market deals requires sustained effort over time. It took us close to 9 months in the Birmingham market to receive our first off market deal. Brokers/agents must get to know you and trust you before they will bring you a a pocket listing-this takes time and effort.

Character & competence are the elements of trust. As we discuss on our website and as part of our business investment philosophy, character and competence build trust. Brokers and agents must get to know and approve of your character before they will trust you with an off market deal. Your character, however, is necessary but insufficient in and of itself; you must also demonstrate competence. Brokers and agents must know that you have the appropriate investment knowledge, team members and skillsets to close a deal.

Communicate your criteria. After brokers have faith and confidence in your character and competence, they must know your investment criteria. Agents must know the specifics of the type of asset you seek acquire. The criteria you provide should include (but is not limited to): the asset class, number of units, neighborhood, purchase price or price per door, and what your strategy for the asset will be going into the acquisition (turn-key, value-add, etc.). Not all investors have the similar criteria; in order to not waste your agents or your time, clearly communicate what you are looking for.

In person interaction. It was only after our in-person meeting with the agent, after 6months of discussion (calls and emails) that the off market property was brought to us. In-person interaction with agents and brokers is critical.

In summary, to get a pocket listing or off market deals requires one thing: networking and building relationships with agents and brokers. The components of building relationships are: sustained engagement, exemplifying character and competence, communicating your criteria, and meeting agents and brokers in person.

In our next blog, we will discuss success, failures and lessons learned from this first off market property. Become a member via our website to automatically receive this and other future content!