How To Take Advantage of Your Off Market Deals
Coronavirus made a huge impact on the global economy. Several real estate businesses are struggling because of the comprehensive implementation of social distancing and quarantine in the United States. In result, finding deals in the market can be a lot difficult because most people are just shifting to work-from-home set up.
In relation to this, let’s now talk about the different ways that you can do to find the best deals in the market. Real Estate IQ made a huge step to continuously provide every investor an opportunity to learn even if they are at home. One of many things that you can learn from REIQ’s online classes is improving your skills when it comes to off market deal finding. Let’s discover how you can still make profits while at home.
Off Market Deal
For starters, off market deals are leads that are not listed on the MLS (Multiple Listing Service), where the real estate agents usually get a list of properties that are for sale. So if you do not see the property that you are targeting on the MLS, then it is an off market deal.
Why do you have to look for off market deals?
Basically, since it is not listed on the MLS, you have a higher chance of closing the deal because you have less competition. Another reason is, you can get bigger discounts. You can ask up to 30- 40% off. Because lastly, you can have a direct negotiation with the seller himself. Thus, you need to have comprehensive skills and be diligent in finding these kinds of deals, because you might encounter some instances that the clients may not yet be ready to sell the house.
Finding Off Market Deals
Since you can not find off market deals easily, here are three (3) ways that you can do:
- Market for the sellers to contact you
Place ads, banners, and post on different platforms that you are looking for off market deals.
- Find the potential motivated sellers
For example, a pre-foreclosure list, properties with liens, homeowners in probate, etc.
- Buy from a Wholesaler
Let someone else do the groundwork. On the other hand, you will be paying their wholesale fee on top of the possible income you could get from the house. If it’s a good deal, then why not?
Strategies for finding off market deals
- Bandit signs
You may see it a lot of times, handwritten or printed. But usually, the handwritten ones tend to get a higher response than the commercial looking ones.
- Direct Mail
So from the list of potential motivated sellers, you can send them flyers, postcards, banners, or whatsoever. But you have to be diligent in sending messages and update them consistently.
- For Sale By Owner (FSBO)
Now for this one, some owners don’t want to put their property on MLS probably because there are some repairs that need to be done or they don’t want to give a commission to realtors. So what you can possibly do is to go to certains websites for this one like Zillow Craigslist or FSBO.com.
Closing Off Market Deals
Finding off market deals are hard to find, but closing a deal is a much more difficult task. Just imagine yourself as a seller. You have to prove to your customer that you and your product are effective and trustworthy. So how will you get the trust of the customer? That is when building a relationship with your prospective seller comes in. It takes a lot of effort to build a deeper connection with them. But once you earn their trust, that’s when everything becomes so much easier.
Disclaimer: The blog articles are intended for educational and informational purposes only. Nothing in the content is intended as legal or financial advice.