What Are Off-Market Properties?
Off-market properties are exactly as they sound – they are properties not publicly listed for sale.
Why Do People Sell Off-Market?
Sellers opt for this route for a variety of reasons, such as privacy, the need for a quick sale, or the pursuit of exclusive negotiations.
Why Should You Care?
Off-market properties offer unique opportunities that are often less competitive than publicly listed properties. Speaking with the seller directly makes it a lot easier to negotiate thus increasing the chances of securing a below-market-value deal.
Before you start looking for off-market properties, it is important to:
- Set your goals and budget: Start by defining your investment objectives and determining the amount you can comfortably invest. This step will help you concentrate your efforts on properties that align with your investment plan.
- Specify your property requirements: Clarify your preferences for the type of property, its location, size, condition, and any other specific factors that matter to you. This will help streamline your search.
- Plan your finances: Ensure that your investment funds are readily available, whether from personal savings, loans (such as bridging loans), or potential partners (joint ventures). Being financially prepared will enable you to act swiftly when the right opportunity arises.
Here are 5 effective ways to find off-market properties:
- Estate Agents & Lettings Agents
Estate agents and lettings agents have access to a wide range of properties, including many that are not publicly listed. Build trusting relationships with these agents by attending local property events and staying in regular contact. They are more likely to notify you about properties before they hit the open market if they know you’re a serious buyer.
Approach lettings agents and offer to maintain the business with them, or compensate them for lost rental income (finders fee) from the properties you buy. This encourages them to help you find off-market deals and ensures a steady rental income stream.
Pro tip: Focus on independent agents. In my experience, independent agents are more likely to go the extra mile for their clients and are more open to negotiating deals.
- Paid Advertising
Paid advertising is a great way to reach a lot of people and tell them what you’re looking for. When picking the right platform, make sure your marketing efforts align with your target audience.
For example, if you’re targeting motivated sellers, you might consider using Facebook ads. However, it’s important to conduct thorough market research to identify your ideal audience’s demographics and interests.
Pro tip: Make your ad look like content to increase the likelihood of people watching it. For example, you could create a video ad that provides value to viewers, such as tips on how to sell a house quickly.
- Online Groups
Joining groups on sites such as Facebook, LinkedIn, and WhatsApp can be a great way to find off-market properties. There are two types of groups you can join:
- Property investment groups: Participate actively in these groups to build credibility and trust. As others get to know you and your goals, they may share off-market leads or opportunities with you.
- Local groups: Explore local online groups in your investment area where people occasionally post properties for sale or know someone looking to sell. Look to connect with some people in these groups as they are in your target area and can keep an eye out for properties for you.
- Content Creation
Creating content about your property investment journey is a great way to establish yourself as a credible investor. Potential sellers are more likely to approach you with off-market opportunities if they know you’re knowledgeable and experienced.
Consider creating video content showcasing properties you’re interested in or have recently acquired. This gives potential sellers a glimpse of your investment style and helps them understand what you’re looking for.
Pro tip: If you’re unsure what kind of content to create, start by sharing your experiences and insights. You could also write blog posts, share photos, or create on topics such as property investment trends, market analysis, and renovation tips.
- Networking
Networking events attract various professionals, including tradesmen, deal packagers, estate agents, lettings agents, mortgage brokers, landlords, and so on.
Going to these events opens doors to valuable contacts who might know about off-market opportunities. However, when attending these events, focus on building genuine relationships rather than just seeking deals.
A good way to start is by simply saying, “Hey ____, I’m looking to invest in (insert property type) in (insert area). If you happen to come across something that fits this criteria, it would be a massive help if you let me know. I’m more than happy to use your services for the project as a thank you.”
This will help build a long, trusted relationship, and also encourage them to bring you more properties.
However, before you do that, make sure you know they’re good at what they do, and the numbers still work. Because if they charge too much and you use their services, and it eats up all of your profit, then it would be pointless from the get-go.
Conclusion
Finding off-market properties can be a challenging task, but it is possible with the right approach. By following the tips in this blog post, you can increase your chances of finding the perfect investment property at a below-market-value price.
Remember, the key to finding off-market properties is to build relationships with people who have access to these types of deals. This includes estate agents, lettings agents, property investors, tradesmen, family, friends, etc.
With hard work and perseverance, you can find off-market properties that will help you build your investment portfolio and achieve your financial goals.
I would also add that it is important to be patient when looking for off-market properties. It may take some time to find the right deal, but it will be worth it in the end.
About the Author
Scott Macpherson is the co-founder and Property Acquisitions Director of Think Property, a company that helps busy professionals invest in property without having to do any of the hard work involved. Think Property’s services include property sourcing, renovation, and tenant placement. This saves clients time, money, and energy, allowing them to focus on their careers and other priorities.
Scott is also a passionate educator and regularly shares his knowledge of property investment through his YouTube channel, where he posts educational videos every week!
