Real Estate Investing
REAL ESTATE: 20 Ways To Find Off-Market Deals
As the market heats up, it becomes more and more fashionable to find off-market deals.
But, not all “off-market” deals are worth buying. In fact, a huge portion of off-market deals aren’t on the market because… you guessed it, they want more than the property is worth.
But, it’s also true that most on-market deals will sell at or above market value in today’s hot market. .
So it’s a catch-22. Most off-market deals want more than the property is worth, but if it goes on the market, it will definitely sell at full value. So what do you do?
Even if 90% of off-market deals are a waste of time, that other 10% of the deals might sell well below market value, whereas anything listed online will definitely sell at market value. So, there is still some opportunity for money to be made.
So, today we’ll cover different ways to find the coveted “off-market deal real estate.”
1. Pocket Listings
This is a deal that an agent or broker has but hasn’t brought it to market yet. This is more common in commercial deals and also residential deals that aren’t very marketable.
There are a few reasons why a seller may not want to openly market the deal. The biggest of which, is they do not want to spook the in-place management or tenants. If tenants are afraid their rents will jump, they will start to move which lowers the Net Operating Income of the property and makes it less marketable.
Here’s why:
It sells the deal almost immediately, the broker can probably get near the asking price (or they would put it on the market), and it sells virtually instantly which makes the broker look good.
So get to know some high-powered brokers and get on their buyer’s lists.
2. Direct Mail
Some people hate it while others swear by it. Essentially you buy a mailing list, write letters to the owners, mail it out, and hope to get a call.
The response rate is low, around 0.5%, but people who direct mail look at it another way – for every 1000 homes they mail to, they get 5 calls and probably close one deal.
That’s really not bad if you think about it.
I personally sent out a direct mail campaign this year and had a response rate of over 3%. I closed a 20%+ cash on cash deal and sent less than 1,000 letters. So, it’s totally possible to create a great campaign with great results!
3. Driving Neighbourhoods (and following up)
This works for both residential and commercial. Choose a market, drive around, and write down all the properties that appear to be in distress.
Then find the number of the owner and call them.
If the property is in distress, the owner is probably motivated to sell.
4. Cold Calling
This is related to #3, except you are just calling a list of properties instead of driving them first.
5. Property Management Companies
They will probably be the first ones to know when an owner wants to sell. They may be able to make an introduction between you and the owner.
6. Eviction Court
Look for houses with recent or pending evictions. For multifamily, look for a property with a large caseload of evictions which could signal a property in distress.
Owners with eviction problems are more likely to entertain an offer to sell.
7. Create a Website
People always take you more seriously if you have a professional looking website. In fact, it’s gotten to the point that lack of a website will actually hinder you from succeeding, even if it doesn’t generate much traffic or sales.
7a. Create Great Content for Owners
Having a website is a requirement, but if you want it to generate traffic, name recognition, and leads, you need to create content for your target audience.
People tend to talk to other people like themselves, and that’s true for how they write as well. That’s why accountant and attorney websites are usually so terrible because they are focused on impressing other attorneys and accountants!
Flip it around and focus your content on your target audience. If you want to buy single-family homes, create content for people who are trying to sell a single family. Same is true with multifamily.
8. Title Company
They probably know all the major groups that are buying/selling in your area. If you have a good connection here they might be able to make an introduction
9. Landlord or Apartment Association Meetings
You want to be the first to know when a current owner is selling. So, go to their professional meetings.
10. Real Estate Investing Meetings
If another investor knows about an off-market deal but doesn’t have the money to get it done, they may be willing to tell you about it.
11. Start a Podcast
Similar to creating a website, a podcast is a great way to meet other real estate professionals and start building those relationships.
12. Tax Delinquencies
If an owner can’t pay their taxes, they are probably motivated to sell.
13. LoopNet or MLS
A lot of people believe LoopNet or the MLS are terrible places to find deals. There will undoubtedly be a good deal here or there on these services, you can also use them to get to know some of the brokers in a new market.
Ask the brokers for references to good property managers then ask those managers for references to more brokers.
So, internet listing services are a good way to get a conversation going, even if you don’t ever close a deal from it.
14. Tradespeople/Vendors
They tend to get around and know all the major communities and property owners in the area. You could ask for some insights into different areas, which are full and which are vacant, and which ones have problems.
15. BiggerPockets
BiggerPockets is focused more on the single-family side, but may also be a great place to find other professionals.
16. Networking
Relationships rule everything in real estate. Do we really need to go into detail about why you need to be at every networking event in your city?
17. Create a YouTube Channel
YouTube is the #1 video search engine. People often search YouTube because it’s a lot easier to convey a message in video than in writing. So, if you are trying to reach a target audience, it’s a great idea to create video content for them.
18. Bankers and Brokers
Mortgage brokers and bankers may not know who wants to sell, but they will know all the major owners and sellers because they’ve probably worked with a lot of them.
19. Craigslist
Look for properties that are for rent. A listing means there is a vacancy. It’s usually just part of ordinary turnover, but if you see a property being listed a lot, there may be a problem.
20. Start a Meetup
People love networking. In addition to attending other networking events, you can create your own. Since it’s your event, you will have the stage which builds your name.
21. Find a Bird Dog
Take any one of the categories in this real estate investing tips and get another person to do it for you. In return, you’ll compensate them for every deal closed.
To know more about real estate hack, money tips, and building generational wealth, subscribe to Wealthlab and learn how to bust through the barriers preventing you from becoming a millionaire.
Featured image: Photo by Harmen Jelle van Mourik on Unsplash
By Sheryl Chapman
As we all know, the economy can be unpredictable at times. Recession is a common phenomenon that can affect the investments in your portfolio.
But don’t worry, there are some sectors that are likely to perform well—even during a recession. Here are five recession-proof investments that you can consider adding to your portfolio.
(Editor’s note***********:************ If you wanna learn how to start investing for retirement, check out the free lessons inside the academy! 📺)*
1. Consumer staples
Consumer staples are products that are essential to our daily lives, such as food, household goods, and personal care items.
These products are in constant demand, regardless of the economic climate. Companies that produce these items, such as Procter & Gamble and Coca-Cola, are considered recession-proof investments.
These companies have a stable revenue stream that can weather economic downturns.
2. Utilities
Utilities are another recession-resistant investment. People need electricity, gas, and water, regardless of the state of the economy.
Utility companies, such as Duke Energy and American Electric Power, have a steady stream of revenue and provide investors with a reliable source of income.
3. Healthcare
The healthcare industry is recession-proof because it provides essential services that people cannot do without. Companies that provide healthcare services or products, such as Johnson & Johnson and UnitedHealth Group, are likely to remain profitable during a recession.
4. Gold
Gold is a safe-haven investment that many investors turn to during times of economic uncertainty. Gold prices tend to rise during recessions because it is seen as a store of value. Investors can buy physical gold, gold ETFs, or invest in gold mining stocks.
GUIDE: 3 Ways To Invest In Gold In 3 Minutes Or Less 🔑📲
5. Treasury bonds
Treasury bonds are considered to be one of the safest investments during a recession.
These bonds are issued by the US government and are backed by the full faith and credit of the government. Treasury bonds provide a fixed income and are considered to be a low-risk investment.
In conclusion, these five investments are considered to be recession-proof because they provide essential products or services that people cannot do without.
Adding these investments to your portfolio can provide stability during times of economic uncertainty.
Airbnb has revolutionized the travel industry by providing an affordable and unique way for travelers to experience different destinations.
With over 7 million listings worldwide, it’s safe to say that Airbnb has become one of the most popular ways for travelers to find lodging.
However, as a host, one of the most challenging decisions you’ll face is determining the right price for your listing.
Pricing your Airbnb listing correctly is critical to your success as a host, as it can make or break your profitability.
Here are some tips to help you price your Airbnb listing for maximum profit:
Know Your Market
Before you set your price, it’s essential to research the market in your area. Look at other listings in your neighborhood, paying attention to the size of the property, amenities, and location. Check the availability of your competitors and the average price they charge. This information will help you determine your pricing strategy and ensure that your listing is competitive.
Consider Seasonal Demand
Seasonal demand plays a significant role in the pricing of your Airbnb listing. During peak seasons, such as holidays, festivals, and major events, you can charge higher rates. Conversely, during low seasons, you’ll need to lower your prices to attract guests. Keep track of events happening in your area and adjust your prices accordingly.
Offer Discounts
Offering discounts is an effective way to attract guests and increase your occupancy rate. Consider offering discounts for extended stays, early bookings, or last-minute reservations. You can also offer discounts to guests who leave a positive review or refer new guests to your listing.
Calculate Your Costs
To ensure that your pricing strategy is profitable, you need to calculate your costs. Take into account expenses such as cleaning fees, utilities, maintenance, and taxes. Factor in your time and effort as well. Your goal is to set a price that will cover all your costs while still allowing you to make a profit.
Be Flexible
Finally, be flexible with your pricing strategy. Test different prices and see how they affect your occupancy rate and profitability. Monitor your competition regularly and adjust your prices accordingly. Remember that the market is constantly changing, and your pricing strategy needs to adapt to stay competitive.
In conclusion, pricing your Airbnb listing for maximum profit is a crucial aspect of your success as a host. By researching your market, considering seasonal demand, offering discounts, calculating your costs, and being flexible, you can set the right price for your listing and maximize your profitability.
Happy hosting!
Are you looking for a way to earn some extra cash? Have you considered turning your spare room into a money-making Airbnb business?
With just a few simple steps, you can create a cozy and welcoming space that guests will love. In this article, we’ll explore three ways to get started on your journey to becoming an Airbnb host.
Here are three steps to get started TODAY.☕️🏠💰
1. Prepare Your Space: Before you start accepting guests, you need to make sure your space is guest-ready. This means cleaning thoroughly, providing fresh linens and towels, and decluttering the space.
PRO TIP: You may also want to consider adding personal touches like fresh flowers or a welcome basket to make guests feel at home.
Here’s a growth hack from the Airbnb lecture inside the academy: “A nice personal touch like a letter or a note can go a LONG way.”
Oh, by the way…he makes $500K/month from his Airbnb side hustle. (Watch it for free here.)
2. Create Your Listing: Once your space is ready, it’s time to create your Airbnb listing. (Here’s a guide on how to do this in 10 minutes. AND it pays you $25.)
This is where you’ll showcase your space and attract potential guests. Make sure to include high-quality photos, a detailed description of your space and amenities, and accurate pricing information.
You may also want to consider offering discounts for longer stays or adding extra perks like free breakfast or use of a pool.
3. Manage Your Guests: Once your listing is live, you’ll start receiving inquiries and bookings. It’s important to communicate promptly and clearly with guests to ensure a positive experience for everyone.
Make sure to answer any questions they may have and provide detailed check-in instructions.
During their stay, make sure to be available to address any issues that may arise and provide recommendations for local attractions and restaurants.
With these steps, you can turn your spare room into a profitable Airbnb listing and start earning extra income. Happy hosting!
Editor’s Note: If you want a step-by-step coaching session on how to set up your own $100K+ Airbnb side hustle, you can do so here. $49. Limited time only.
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