Real estate investors have to strive to be one step ahead of other homebuyers, so they could get the best houses possible. This is one of the reasons they should always try to find off-market properties in Milwaukee.
Real estate investors love finding off-market properties because of the numerous advantages they might bring. First off, when you’re looking to buy an off-market property, you will face little to no competition. Properties listed on the MLS are likely listed on several other sites such as Realtor.com and Zillow.com, which means that many people can see it and try to demand it. The rise in demand leads to the rise in the price. Off-market properties can often be high in quality, and you could make a nice profit on them. The key problem is how to locate them.
Here are several tactics you can use when searching for off-market properties.
1. Direct Mail Marketing
Direct mail marketing includes a real estate investor sending a targeted mail to the owner, hoping that they will agree to sell their property. Direct mail marketing is a great way to get off-market properties that no one else discovered. In fact, there is a high chance that the owner never even considered selling before receiving your mail. As a result, you’ll be the only one bidding for the house and you can get a deal that is great for you.
2. Roofstock or Mashvisor
Roofstock is a useful site many real estate investors use to find off-market properties. Some properties can get listed with the “Roofstock Exclusive” tag, which means no one except Roofstock users can discover them. This means they won’t be available to the general public and you’ll have less competition.
In order for properties to get this tag, they have to undergo a rigorous selection process. This includes inspection reports, neighborhood ratings, as well as financial pro-formas. Also, this will allow you to select a property you like using these criteria. Another good side of using sites such as these is that you don’t have to use middlemen to submit an offer. This will allow you to buy a house fast, as the sellers typically won’t wait a certain date to review all offers.
Similar goes for Mashvisor, a site that also has a list of exclusive off-market houses that aren’t public knowledge. Sites like these are an easy way to find a lot of unlisted properties at one place.
Contractors work directly with property owners, not only when it comes to the physical aspect, but they’re also there to gather information. If you are in a good relationship with a contractor, he or she may share with you when their clients are planning on selling a property. This can enable you to get in contact with the buyer before they list the property. It isn’t rare of a buyer to ask a contractor to find them a good buyer, as well. Keeping a great working relationship with a contractor has many benefits and can help you find off-market properties located in Milwaukee.
4. Working with Other Investors
Having a good relationship with other real estate investors is also beneficial, especially if you are looking for off-market properties. You can buy properties from them, as a lot of investors will be willing to sell to people from their own industry, especially if they realized they don’t know what to do with the property they’ve bought. At the same time, most investors won’t buy all properties that are offered to them. This means they will know where to find properties for sale, even if those properties aren’t listed on the MLS.
5. Working with Wholesalers
Wholesalers buy properties, just so they can resell them for a bit of a higher price. They will typically have a lot of houses under the contract, and as a result they have a great knowledge about unlisted houses. If you are friendly with a wholesaler, they might be ready to put you on the contract for a property that is off-market.
Keep in mind that wholesalers are typically after run-down houses, which means you’ll be required to invest some money into repairing the property. Before making this kind of deal with a wholesaler, be sure you have the finances for all the additional maintenance.
6. Working with Real Estate Agent
Even though real estate agents and real estate investors are often seen as rivals, they can work together to create fruitful deals. Real estate agents have a list of houses for sale, typically even before those properties are listed on the MLS. If you have a good working relationship with a reputable agent, they might put you on the list of buyers to which they market their off-market real estate deals. This is a slow process, as agents won’t work with everyone, especially not if you are just starting investing. However, as you get more reputable, you can find good off-market properties this way.
Driving-for-dollars literally means you drive across the neighborhood looking for houses that you might be interested in. Once you find a property that has what you are looking for, you will write it down and later try to get in contact with the owner. If you don’t mind buying distressed properties, this can be a great tactic. A lot of people have unwanted properties they hesitate putting on a sale. Once they hear there is a potential buyer, they might make their decision earlier – especially if they hear you are buying in cash.
If you wonder how you can find the owner of the property that sparked your interest, try looking into public records, as there should be the name and the address of all house owners in Wisconsin.
Real estate auctions can, on some occasions, be a good tactic to get those off-market properties. Typically, homes that have taxes owed on are placed on auctions, and sometimes you may buy a property for the price of that debt only. However, a competition can get high during the auctions, and these properties will usually require a lot of repairs.
9. Various Sites
Just because a property isn’t listed on the market, that doesn’t mean it isn’t for sale. Sometimes, people list their properties on unofficial real estate selling websites, such as Craigslist. Sometimes, Zillow.com will also allow off-market properties to be listed on their website. A lot of these online locations will allow you to set notifications, so you can know as soon as someone posts an off-market house you may be interested in.
Keep in mind that sites like these are where many real estate fraudsters go to find victims for their scams. Before you decide to buy a property, do your homework well and ensure you are certain the listing is real and the property is as shown on the site.