How to Find and Close Off-Market Deals in Your Area
Although real estate investing is an excellent path to wealth and long-term success, one of the challenges is its fierce competition. There are only so many properties, and with up-and-coming markets, you have to be proactive and fast to get the best deals. Finding off-market deals are going to be one of your best options for closing sales.
The fact is that everyone is looking at on-market properties, such as those listed on the MLS. Off-market listings are so much better because you may be the only one looking at it (or one of a select few). This exclusivity allows you to make better offers and have more flexibility.
Even then, though, you need to know where to look for off-market listings and how to approach them.
In this article, we’re going to discuss the best options for marketing to these properties so that you can corner your local market and achieve better success in real estate.
How to Find Off-Market Real Estate Deals
Before we can outline the ideal strategies for marketing to these owners, you need to know where to look.
Here are a few suggestions that could help you locate unlisted real estate for sale. Also, you need to be innovative and creative, so let this list inspire you as well.
In many cases, families either can’t or don’t want to deal with property left behind by a loved one. Estate attorneys can give you insight into these situations so that you can make a move. Proceed with care, though, as you don’t want to give the wrong impression to the grieving family.
Home renovations are always a good investment, but sometimes projects can hit a snag and wind up with an indefinite finishing date. Homeowners that can’t complete renovations due to financial issues may be looking to liquidate.
Then you can move in, finish the job, and then resell for a profit. Networking with contractors can give you the inside track on these disasters waiting to happen.
Tax Delinquencies and Foreclosure Listings
Public records can be a little tricky, depending on your market. Some counties make you jump through hoops, and chances are that other investors are looking here as well.
However, you can get some excellent leads, as well as find motivated sellers. In those situations, you can make a killing on your real estate deals.
5 Tips to Market to Off-Market Properties
Off-market deals can be some of the most lucrative in this industry, which is why you need to be both aggressive and creative with your marketing tactics.
Now that you know where to look for unlisted houses for sale, here are five proven techniques that can close these deals, so all you have to do is follow along.
1. Direct Mail Marketing
Since we live in the digital age, it’s easy to assume that traditional print advertising like direct mail is dead. However, direct mail will be your bread and butter for closing leads.
That being said, you need to be patient and persistent, so don’t get discouraged if your direct mailers are not getting hits immediately. It’s a numbers game.
Here are a few pointers to make this marketing tactic work better.
Plan for a Three to Four-Month Cycle
In many cases, sellers aren’t ready to make a deal as soon as you put your name out there. Also, they may be trying to get more money. However, patience is the best option.
Usually, you can close within about three to four months after starting a new campaign. Building a relationship and rapport with your customer is key here.
Be Diligent With Follow-Ups
Direct mail is never a “one and done” strategy. You need to be persistent so that when your seller is ready, you’re the first person that comes to mind. Also, persistence ensures that you can stand out from any competition in your market.
Scalable and Repeatable
One of the primary benefits of direct mail marketing is that you can adjust it as necessary. Thanks to tools offered by the Postal Service, you can get all kinds of details on property owners, which can help dictate how you approach them.
Overall, direct mail is one of the best tactics, and real estate investors are consistently making seven figures around the country with it.
2. Outbound Text Messaging
These days, people don’t want to talk on the phone. Text marketing is a growing field, particularly in the world of real estate. Currently, this practice is incredibly rare among investors, so now is the perfect time to take advantage.
That being said, you need to have the right tools in place to make it work efficiently. Here are some considerations before you get started.
Make sure that you have a dedicated person fielding these texts and responding. Also, have an inside sales agent (ISA) to screen calls and set up appointments. Trying to add it to your to-do list will be impossible.
Build the Right List
Unsolicited texts can sometimes have the opposite effect, so you need to create your lists the right way. Also, you need a system that can manage numbers, particularly if and when they become obsolete.
Monitor Local Laws
With so many robocalls happening every minute, legislation regarding texts is always in flux. While this method is golden right now, it could become null and void in the future.
As a real estate investor, you may not like the idea of cold-calling. In fact, most business people don’t.
However, if you want to capitalize on off-market deals, you need to get better about this type of marketing.
Cold-calling works similarly to text messaging. You’ll need an ISA to be making calls consistently.
On average, a single salesperson can run through about 5,000 numbers a month, which can yield about one or two deals. That isn’t much, which is why it’s imperative to keep your salespeople busy.
If you’re going to have a system to manage phone numbers for texting, you can use one for cold calling as well. Build lists of potential sellers and hit the phones. It can sometimes seem like thankless work, but the effort is well worth it.
4. Ringless Voicemail
Getting hung up on while cold calling can make the process even more of a grind. This is part of the reason why so many people don’t like doing it.
Ringless voicemail is a similar approach, all without the sting of having a call cut short by an irritated seller.
There are pros and cons to ringless voicemail. Here is a brief breakdown.
- Send more messages in less time
- Easier for salespeople, less stress
- Offers a more personal approach to sellers than a text message
- Requires sellers to call back, which may be ineffective
- A salesperson can’t interact with the seller and move the needle immediately
Overall, this method is okay, but it’s not going to be your go-to for closing off-market deals.
Instead, it should be a continuation of the other methods – one extra lead funnel that can help grow your business.
5. Use Your Personal Sphere of Influence
Networking is one of the most powerful tools in real estate (or any business). If you want to stand out from the competition, people need to get to know you and what you have to offer.
Unfortunately, many real estate investors don’t recognize the potential of reaching out to personal contacts, which can wind up leaving a lot of money on the table.
As you can imagine, sellers are more likely to trust a referral than a stranger. Even if a “friend of a friend” recommends you, it’s better than finding a random investor elsewhere.
Here are a couple of pointers to get this strategy right.
Develop a Pitch
You should always be networking, even when you’re not “on the clock.” Having a quick pitch can endear people to your business, and it will be easier to remember when they refer you.
Everyone is a Referral
Don’t just focus on professional colleagues or acquaintances. Chances are that you can find an excellent off-market deal from a longtime family friend. Don’t discriminate.
Reviewing these marketing tactics may seem a bit overwhelming. After all, if you’re still new to the world of real estate investing, how can you get inside sales agents for cold calling, texting, and ringless voicemail?
Fortunately, REIvault has everything you need. We offer all of these marketing techniques to our clients. All you need to do is close the deals and build your business. We’ll handle the details; you bring the passion and investment.