How to Find Wholesale Properties (And 4 Other Strong Off-Market Investment Methods)
The real estate market is hot right now. With properties frequently coming on and off the market in a matter of days, it can be hard to find the perfect home or investment property before someone snatches it up first. So, many smart investors have taken to a variety of tried-and-true methods of buying a property before it goes public.
This is a seller’s market. For those looking to sell their homes and properties right now, there are constant benefits such as high demand, increased property values and a strong sense of leverage. However, that means that buyers are left scrambling to the MLS and their realtors trying to get their offers in during the rapid closing windows that come with the current market pressure. With this time crunch, there is no time for investors to wait for properties to come onto the MLS.
If you have not looked into it before, the idea of buying a property off-market can sound confusing. If a property is not listed for sale, how are you supposed to find it, let alone buy it. However, it is not as strange as it may sound, as investors have been utilizing the following tactics to secure off-market investments for many years.
However, before we dive into all of the tips and tricks you can use to find off-market deals and learn how to find wholesale properties, we would like to offer you a free strategy call with our team.
Since many lenders rely on MLS listings as part of their approval process, off-market properties often require specific programs through dedicated lenders, and we want to make sure you are getting the financing you need whenever you are working out how to find wholesale properties and other off-market opportunities.
To book your call today, all you need to do is click the link below and schedule your time.
Leveraging Inside Information
If you are looking to find properties before the public has been made aware of them, you are often going to want some inside information. Fortunately for you, one of the best sources of inside information on off-market deals and properties that have not hit the MLS yet is none other than your realtor.
Realtors often have the inside scoop on properties that are being prepared for listing and in many cases may be able to turn you onto those property early. This is increasingly common if the seller is wanting the property sold very quickly instead of waiting for multiple offers to come in.
As well, your fellow investors can also have the inside information on properties that have not hit the market yet. This includes properties that investors are selling to buy something new or cash out on and enjoy their profits. By communicating with other investors, you might be able to get a good deal directly from them.
Make the Sellers Come to You Through Mass Mailing
For many off-market investors, mass mailing is the name of the game. Investors frequently will know the area they are looking to buy into, but just need to secure a deal to get into the market. So, they will send out letters to all of the homeowners in that area expressing their interest in buying their homes.
Approximately 95 per cent of the time, this will yield zero result and of the remaining five per cent, most of them will not be interested. However, in real estate you do not need every single property owner to be willing to sell to you, you just need a good one, especially if you are a new investor.
This method of finding deals is not free, you will need to spend time and money writing, designing, and sending the letters to prospective sellers. However, there are much more expensive options available.
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Look For Signs of Neglect
One of the best ways to find a home that you can potentially buy off-market is to physically go out and look for one. If you see a home that has obvious visible signs of neglect and disrepair, the homeowner may be overwhelmed and willing to part with the property.
It is important you approach these potential sellers with caution because you do not want to offend them by insulting their home.
Hunting For Real Estate Through Public Records
Public records are a great way to find potential deals that may be passed over by people who only refer to the MLS. By checking recent property sales, ownership, and previous listings you can find and eliminate properties and narrow down the best options. If you see a house has been recently purchased, you can safely assume they are not going to sell in most circumstances, and if a person has owned their home for 20+ years it may also be hard to convince them to move.
However, if a home has been owned for a moderate amount of time or has been listed and taken off of the market, there is potential for a sale that otherwise would not have been available at all.
This is a popular tactic amongst wholesalers who are trying to find overlooked deals while working out how to find wholesale properties.
How to Find Wholesale Properties
One of the most reliable ways to find off-market deals is to learn how to find wholesale properties.
Wholesalers are people who go out looking for deals on homes for sale to put under contract. These individuals often are utilizing the same tactics as other off-market investors without the intent to keep the property for themselves, instead opting for an immediate profit. These people can be an excellent resource for investors who have busy lives and schedules and cannot take the time from their days to complete some of the more hands-on methods of finding these properties on their own.
Just make sure you take the time to inspect the property for any needed repairs, updates, or renovations. Many wholesalers have been known to downplay these problems to make a property appear more attractive to buyers.
While turning to a wholesaler is one of the easiest methods of figuring out how to find wholesale properties, the truth is that most wholesalers employ the previous strategies on this list to find their deals. So, if you want to learn how to find wholesale properties so that you can become a wholesaler yourself, here are some additional tips.
How to Find Distressed Properties to Wholesale
When you are working out how to find wholesale properties, your first challenge is going to be finding motivated sellers, these are individuals who are going to be far more likely to sell their properties - even if they have not listed them yet.
For many, the key for how to find wholesale properties and motivated sellers is looking for distressed real estate. This means driving around and hunting for the signs of neglect that you would look for when pursuing your own off-market deals.
How to Find Wholesale Properties Online
Another key tool when working out how to find wholesale properties is the internet. However, in this case we are not trying to learn how to find wholesale properties on the MLS, after all those sellers have already gone to a realtor and are likely beyond the point of wholesale.
Instead, I am going to tell you how to find properties to wholesale on social media.
Often, when people inherit a property they cannot care for, or are looking to see whether it might be a good time to sell, the first place they are going to go is Facebook. There, you can approach these potential sellers and make an offer.
Facebook is just one method for working out how to find wholesale properties online, the truth is that if you know where to look, you could probably work out how to find wholesale properties on nearly any platform.
Financing Off-Market Purchases
When you are looking to secure a mortgage for an off-market purchase, the process is usually similar to buying a property listed on the MLS. However, some of the paperwork will differ.
For example, for an off-market deal you do not have the price on the MLS listing in place to help you get approved for your mortgage, so you will need to find provide another form of proof for the sale price on the property. As well, lenders will often charge higher interest rates on off-market properties as opposed to publicly listed ones.
To make sure you have everything you need in place to make your purchase, talk to your realtor and mortgage agent and let them walk you through the process. As well, if you have not started the process, you can book a consultation at LendCity for a full breakdown of everything you will need. To get started visit us at LendCity.ca or call 519-960-0370. Alternatively, you can book a free strategy call with our team by clicking the link below.