Real Estate Wholesaling: How Can I Buy Off Market Properties?

How can investors wholesaling properties find and buy off market homes to overcome challenges of tight housing inventory?

Some wholesalers around the country are finding that they are facing tighter inventory levels and more competition, or at least are letting the media create the fear that they may face these issues soon. Of course, many may find the solution in simply looking to new areas where foreclosures are rising or where there is more growth, or just looking for new niches locally.

Still, those wholesaling properties constantly crave more homes and better discounts, which can be found in off market homes.

There are still plenty of homes that are vacant and in default or in which sellers need to or ought to sell now. Sometimes they just need prompting, some need to be made aware of the advantages and benefits of selling now versus the perils of waiting, or perhaps they just need to know how much they can get for their homes and that there is a serious buyer interested.

So how do you find these off market houses and condos and contact the owners if they are not being advertised for sale?

Tuning into non-performing mortgages notes and shadow inventory is one wholesaling strategy to consider and can be tapped into with software programs, by contacting banks, and through using social media, as well as networking.

Driving neighborhoods and ‘farm’ areas is another strategy. This can be a good move on weekends when you may also discover more for sale by owner signs out and open houses to get into, and can be done with your family in tow. Leave notes, look up contact information online, send mailers or go armed with contracts and knock on doors to make offers on the spot.

For those that aren’t as socially inclined, turn to looking up records or acquiring lead lists of prime prospects and calling, mailing or visiting them. There is a huge variety of ways to hone in on those that may be ripe for selling from those in distress to moving signals and simply going for those with the most equity and potential room for profits.

Referrals are another great option and attorneys, real estate agents, counselors, financial planners, mortgage loan officers and others can all be great resources for off market homes with motivated sellers.

However, make sure you give equal thought to dealing with responses, phones, filtering leads, and building a database to cultivate and follow up on those that don’t accept offers right away.

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