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REAL ESTATE: 20 Ways To Find Off-Market Deals

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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.

Photo by Antenna on Unsplash

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

Real Estate Investing

How to Invest In Real Estate Through Your IRA

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Investing in real estate can be a great way to grow your wealth, but did you know that you can use your IRA to invest in real estate? An IRA (Individual Retirement Account) is an investment account funded with pre-tax dollars and can be used to purchase investments such as stocks, bonds, or even real estate. Here’s what you need to know about using your IRA to invest in real estate. 

Rules & Regulations 

First and foremost, specific rules and regulations must be followed when using an IRA to invest in real estate. You must adhere to IRS guidelines regarding the types of investments allowed and how much you can contribute each year. 

The most important rule is that you cannot use the funds for personal benefit; any money used for personal benefit will be subject to tax penalties. 

Additionally, it’s important to note that the money in your IRA must be invested into a qualified trust company or custodian before it can be used for any investment, including real estate. 

Benefits of Using an IRA To Invest In Real Estate 

One of the major benefits of investing in real estate through an IRA is that all profits from the investment are tax-free until retirement age.

This means any profits gained from rental income or appreciation won’t have to be reported on taxes until you withdraw them at retirement (typically 59 ½ years old). Additionally, since a traditional or Roth IRA allows for up to $5000/year ($6000/year if over 50) contributions without triggering taxes on those amounts, this could provide more capital than if investing with after-tax dollars alone. 

This could give you more buying power when looking for a piece of property and create larger returns down the road with compounding interest. 

Drawbacks of Using an IRA To Invest In Real Estate

There are some drawbacks associated with investing in real estate through an IRA, such as using the money after retirement without incurring taxes and penalties on withdrawals before then.

Additionally, IRAs typically have higher fees than other investments because they require custodians or trustees who charge annual fees for managing the accounts. Also, since IRAs can’t borrow money against their assets or partner with outside investors, acquiring larger properties is challenging due to the limited capital resources available through an IRA account alone.

With proper research and planning, investing in real estate through your IRA may help increase your wealth while avoiding taxes on those profits until retirement age making it a potentially attractive option for many investors who want access to capital without being taxed prematurely.

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Business

How Big Real Estate Moguls Avoid Taxes (And How You Can, Too) 👀

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I was looking around Google for an old article on tax strategies and this five-year old video of myself happened to pop up.

I’m interviewing a tax expert about how real estate investors avoid paying taxes in perpetuity—AND how everyday citizens can do the same thing.

(Real estate—our TEMPLE I and TEMPLE II projects included—has a number of tax benefits savvy investors have capitalized on for years, including Opportunity Zone breaks and 10-year tax abatements.)

There’s the 1031 exchange, of course, which I’ve shared with you guys before. 

Just to refresh your memory, the 1031 Exchange allows you to roll over gains from your last project into a new property TAX FREE—as long as said property is worth the same or more.

But there’s ANOTHER TAX LOOPHOLE that can take your portfolio to an entirely new level by splitting your capital gains into MULTIPLE properties.

So I thought I’d share it with you guys. 💎

You can check it out here.

Let me know what you think. 😎

PS: In our next update, I’m going to break down how real estate moguls get paid from their properties…tax free. 👀
PPS: If you want to learn how to implement generational wealth strategies like this one, you can join our NYCE wealth academy (TRIBE U) here.

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Business

How I run a $300M+ business from the beach…(and how you can TOO!)

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Yes, you read that right.

If there’s anything the pandemic taught us, it’s that the paradigm of “office” and “workspace” has been shaken to its CORE.

Universities are teaching via Zoom, court dates are done virtually, FULLY REMOTE businesses are valued at $1B+, and legitimate Inc. 5000 startups are run from…wherever. 📲

This is my office for the day…

I am actually running our business from the beach, typing this from here.

It’s 4:28 pm CET, which means it’s 10:28 am EST and I am CRUSHING my to-do list.

(And the team will continue to crush it while I’m asleep. That’s the 🗝)

So how did we get here? 

We launched NYCE and our mission to create 100,000 millionaires in March, 2020…just as the global COVID-19 lockdown happened. 😳

As a result, we shut down our main office and set EVERYTHING up to run remotely…

SMOOTHLY! And a system that allows us to outperform competition by 200%. (You can build this system, too. More on this in a second.)

Here’s what we were able to do since then:

  • Gained 6M+ followers across all platforms 📈
  • Add 1500+ new apartments to the portfolio 🤑
  • Grow to $300M in real estate 🚀
  • 105% investor returns 🎉
  • 700K+ community members 🤝

And here’s the best part…

Having team members in all the main time zones gives us a 24-hour work cycle vs. 9-5/eight-hour on-the-clock performance.

This means we get 3x the productivity of a similar company. 🔥

Let me repeat that…3x PRODUCTIVITY vs. our competitors.

Meanwhile our project management software grants us 24-hour TEAM-WIDE connectivity that tracks all tasks and lets us know if productivity dips even a little bit.

There is ALWAYS someone senior awake. It could be Martin in Barcelona…Nat in New York…Vineet & Arif in New Delhi.

All the while giving YOU GUYS wealth hacks and daily content. 🔥

OK, so how can you do it?!

Well, the first step is to have an actual side hustle you’re launching. Not just an idea, a validated business.

MAJOR KEY: Do NOT spend money until you’ve made your FIRST DOLLAR! 🗝🗝🗝🗝

(You can catch a replay Business Launch masterclass here and see TRIBE member Nessa launched her business on the spot and got her first $45K client shortly after.)

One of the easiest ways to start is with Airbnb—you can start that in 10 minutes. Literally. (Here’s a guide if you need it.)

Once you have your business, you build a virtual infrastructure (you really just need two softwares, which are FREE), manage the team accordingly and run the business from there.

I’m gonna put together a step-by-step video breakdown this weekend inside the new TRIBE U on the FIVE key things you need to do this for YOURSELF. 💵 💎

From what software to use, how to build a team, how to keep.

In the meantime, drop a comment if you’re ready to build some wealth and any questions if you want more…

Let’s get to work. 🙌

PS: If you can’t be bothered with video and just wanna get to work, we’re hosting a TRIBE U workshop that will help you get this process started on the spot. It’s $479 $49. 🔥

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