Off Market Properties, An Overlooked Fix & Flip Advantage
By Keran Smith | Category: Uncategorized
Off Market Properties
Ready to take the leap and start building your personal wealth with real estate, but don’t know where to start? One of the most important things about flipping houses is not only finding that perfect property with the most potential but finding it at the right price point. We all know that getting a great deal on a property will yield a better return in the long-run, but where do you find properties like this? Here’s a hint- let’s explore off market properties.
What Are Off Market Properties?
Off market properties are those that are currently being sold without being listed on the multiple listing services (MLS). These properties generally need immediate sale due to a variety of issues including foreclosure, foundation issues and the like where the main priority is usually the sale of the property, not the sale price. Since they are generally being sold below market value, purchasing off market properties gives buyers a better chance at increasing their bottom line on the flip.
MLS vs. Off Market
If you decide to hunt for your next flip through the MLS, the properties may be easier to find, but you will be competing against everyone in the market for a home. Accompanied with this competitive atmosphere, buyers are also likely to find that prices are inflated due to bidding wars and excessive agent fees. Additionally, a great deal of the homes listed on the MLS are already in mint condition and have little to no need for improvements.
On the other hand, there are many up-sides if you choose to investigate purchasing off market properties for your flipping ventures. With this strategy, you will generally find a more desirable price point, less competition for the purchase and a quicker purchase process. One common reason that these properties aren’t on the MLS is due to underlying issues with the property that make them ineligible for traditional financing. These issues are generally the reason for the lower sale price, making them the perfect candidate for a flip.
Finding Off Market Properties
There are many ways to find off market properties, but it usually requires a pretty extensive search. You can comb through websites, talk to real estate agents, guerilla market to homeowners of the properties you’re interested in, network with contractors and the list goes on. In theory, these methods to find off market properties may work, however, they can not only be extremely time consuming, but it can also be an immense hassle to find the property with the most potential.
Instead of wasting your time searching for the right off market properties to fall into your lap, savvy buyers like you can partner with established real estate experts who are dedicated to hunting down the best deals off the market. These experts are trained to have a distinct eye to find distressed properties with the most potential, just aching to have their true value unlocked by driven buyers.
Talk to your local NetWorth specialist today for exclusive access to our off-market inventory!