In the media. Commonwealth. Property investors lose hundreds of thousands of dollars through unregulated real estate advice Even though residential real
Are there any creative ways of sourcing real estate deals that are off-market?
The market for multi-family properties is incredibly competitive right now. Finding an off market deal will be very challenging. Most of my business is done is off market transactions.
There are two ways to source off market deals in my experience:
1) Source the deals by developing solid relationships with lenders. If the deal is off market chances are that the owner is financially troubled and is working behind the scenes to work out a deal with the lender. I have clients that do this with some success, but it can sometimes backfire and just piss off the lender and expedite the foreclosure process. Either way making good with lending institutions is a great way to get an inside track into certain deals.
2) This one is my favorite because it’s so under the radar, and I’m letting the cat out of the bad a bit by posting this, but hey not that many people will read it. I’m not sure how this works in other states but here in Colorado we source deals by tracking properties that are delinquent in their property taxes. Every September each county in Colorado publishes a list of properties for which they are trying to sell the tax liens on the property. Take a look at that list, find the properties that you are interested in and call the owners. Chances are that if they are not paying their taxes then they are financially distressed. Sometimes those properties are already listed but you’ll be amazed at how many people do not pay their property taxes and how many properties are potentially available.