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HMW #159: How to Find Off-Market Real Estate Deals

alan corey closing deal finding evaluate a property off-market realtors Jun 27, 2024

Read Time: 5.75 minutes

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Is the MLS full of deals you can't make work? Money is made when you buy, so how can you be the first to find those deals of the century that no one knows about?

Don't worry, I (Alan) am going to walk you through the 3 step process so that you get first look at off-market deals. This is something I have figured out over twenty years of investing in real estate so instead of me hunting for them, those juicy off-market deals come find me!

You ready for this juice?

 

 

Perfect. Vibe checked.

 

Step 1: Know what you want

 

Be the first person someone thinks of for a certain product type (multi-family, single family, beach rental, etc.) and/or location (zip code, school district, town).

This only works when you know what you want. If you tell everyone you like strip malls, fixer uppers, empty lots, and duplexes well that's a lot of noise when your competition is just saying, "I buy triplexes in 30317 zip code."

When someone finds a triplex off-market because a grandma passed away or their friend from kickball wants to move to Portugal, they will probably think of your competition before they think of you. 

Your competition's message is much cleaner and simpler to keep front of mind. Also that clear messaging brands them as more of an expert than you (whether it's true or not).

Don't be a jack of all trades and master of none. The riches are in the niches and you need to figure out and own your niche! The best three-point shooter makes the team over the best all-around player. The heart doctor makes more than a general practice doctor. Focus on being the best at one thing and you will attract the most of that one thing.

You do this by letting the world know on social media, at cocktail parties, school functions, birthday parties, cookouts, etc. They need to know to call you first when they find [your niche]. It's really that simple.

Are you ready to start?

  

 

Oh great, you are already nailing step 1 then! Let's move along.

 

Step 2: Make quick decisions

 

If you reputation is an expert in your desired niche, then the deal that comes your way should be quick and easy for you to evaluate.

The person coming to you knows they have gold: an off-market deal. They know you are the first person to call when they have this deal. But they also want a quick reply or they are going to start shopping it to someone else.

So, you must recognize a deal immediately. This is what this looks like on my end when I get these organic inbound off-market deals:

  • Thanks for thinking of me for this multifamily on your street. I know by the bedroom count and location the most I could probably pay for it is $600,000.  Let me look it up on Google Maps to confirm, I'll call you back in 15 minutes.
  • Yes, this is my go-to investment, but I just closed on one last week so need to recoup funds. If they could 3 months to close I'm interested. If not, I can give you some other investors that would probably pounce on it.
  • You are awesome for reaching out. I only invest in small-multifamily in Atlanta but I know a few Airbnb hosts in Florida that would know if this a good deal or not.
  • Wow, yes, I would love this property. But if they are asking $1M I know that doesn't work for me as it's vastly overpriced. It's probably worth $700k but I would pay $600k site unseen.

 

 

Yes, quick decision making reinforces your reputation. It makes your expertise shine. And it keeps the deals coming your way when people just "want to bounce a deal off you." It's great to say, "if you don't buy it, I will." 

Which leads us to step 3.

 

Step 3: Close early and often

 

Real estate agents, investors, and my larger network tell me they bring me off-market deals because when I say I will buy something, I will actually see it to closing. Nothing will sully your chance at getting the first look at deals when:

  • You never buy anything in your niche. The calls will dry up. You aren't really a buyer. You're more of a shopper.
  • You go under contract and become a hard ass and difficult. You didn't make it easy.
  • Go under contract and back out.  You aren't a closer. You are a time waster.

You need to live your brand. Be a person of your word. And make the other person feel good about bringing your the off-market lead. This is business 101.

 

 

 

Good, it should! Start now on these steps and just like everything in real estate, the results pay much better dividends the longer and the more you do it. Eventually you never need to look for deals again.  I'm living proof of this, as they all come find me now!

 

In other words:

  • Share your niche early and often to everyone
  • Act quickly when given the opportunity to evaluate a deal
  • Your reputation in your niche grows exponentially with each closing

Are you a newer investor looking for some guidance?

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