There are some property investment strategies that only the savviest of investors know about and practice. These are insider tips that make them money almost every single time.
I have been investing in property for a very long time. And ever since my daughter got into the business, she has made and lost money in almost equal measure. One of her biggest lessons came about when she went against my advice and bought an off market property without inspecting it first and doing her due diligence.
Suffice it to say, she took a complete bath on that one and now listens to every word I say about common property investing mistakes, how to get a bank loan, property investing tips and so on.
Investing in off-market properties
As a seasoned investor, I am always looking for new, innovative and less risky ways to make money in real estate. One of the most reliable ways that I have come to discover is investing in off-market properties. With the right research, offer and sale value, you could make a great deal on money here without getting the ulcers that come with the fluctuation of the market.
What is an off-market property?
The simplest way to explain this is to say that these are the kind of properties that you will not typically find in your local listings. When someone wants to sell their property, they can either go the traditional way and hire an agent who will then put that listing up on the local MLS (Multiple Listing Service), or they could choose to make this entire process private.
Off-market properties are the kinds that aren’t advertised to the public. They are either:
- Owned by extremely private sellers
- An exclusive piece of property that might attract a lot of unwanted attention
- Pre-foreclosure property that hasn’t been advertised yet
- One that the owner is considering selling but hasn’t made the decision public yet
The definition varies greatly but one thing is constant, there is great value and less competition in finding and investing in these properties.
But….If these properties are so secretly sold, how then can you find these highly lucrative yet hidden opportunities? I personally recommend any one or all of the following methods:
Directly market to the homeowners
You have seen the signs that say, ‘WE BUY HOMES FOR CASH’. These are investors looking for off-market deals. Having signs up like this one is a surprisingly effective strategy to attract sellers – provided your contact info is easy to read, even from afar.
A lot of those that attended Rick Otton’s Intensive course use this strategy to get leads. If that type of signage marketing works for them, they may also work for you.
Network with local estate attorneys
Estates can be tricky. There may be debts that need clearing or the beneficiaries may simply want nothing to do with it and thus choose to sell. The reason why doesn’t really matter. What you want is to have an inside man/woman who can give you a head’s up when a certain property is about to come into the market. Estate attorneys are best placed for this purpose.
Network with local builders
These are the people who handle all the building work within your community. You have probably heard of or seen people who have invested in some property but unfortunately could not see the whole thing through due to lack of funds or some other unfortunate occurrence. Local builders have the information on all these kind of properties. A savvy investor like yourself could simply swoop in, offer to buy the half-developed property, finish it off and turn a wonderful profit.
You could also visit your local auctions and examine the local public records for anything that is on pre-foreclosure or that is coming to the market. There are several ways to get your hands on lucrative off-market properties. It takes patience, a discerning eye and thorough research skills.