How to Find and Buy Off Market Properties In 2023
As a potential real estate investor, you will want to stay ahead.
In Singapore and Malaysia, most investors are familiar with investing in new developments.
Builder magazine says newly-built homes are typically about 15% more expensive than existing ones.
Financing the cost of building a home vs. buying an existing home requires a similar process.
If a condo in your home city, Singapore, costs S$1.0m (USD 735,781.0), a 20% down payment would be USD 147,156.
The construction timeline for a newly launched condo in Singapore is 36 months.
If you buy a property in Singapore, you must wait three years or more before making a rental income.
Using the same investment amount and investing in a US property, you can start immediately with Airbnb or traditional income.
All it takes is to set up some paperwork, close the property, and get it furnished and listed on Airbnb.
Should A Property Investor Focus On Profit Or Cash Flow?
A steady, positive Cash Flow is always a far superior strategy than waiting for future profits from a launch condo purchase.
The more cash you put toward buying a property, the better the interest rate you could get in Singapore.
A low down payment increases the lifetime cost of your mortgage.
In the USA, you can easily buy an investment property with cash.
This means you are not affected by the US interest rate hikes.
Noble Sky International can help you achieve consistent above-market returns at 20% per annum.
You can get US Real Estate Investment Properties in the populous cities with the most job opportunities.
How To Find And Buy Off Market Properties?
As a potential homebuyer, you want to buy when plenty of deals and inventory are available.
When demand exceeds supply, bidding wars become common in “hot” neighborhoods.
There are homes that you may not find through traditional multiple-listing services.
Good properties are sometimes sold privately.
Off-market listings may sound counterintuitive, but not all sellers are the same.
Secret listings are sellers’ attempts to hide their homes from unqualified buyers who need to apply for mortgages etc.
How Do You—The Investor—Find Them?
For example, NSI found a beautiful property through a wholesaler in Houston, Texas.
The owner inherited the property when an elderly relative passed on and wanted a quick cash sale.
We could purchase it immediately with a group of cash investors, and the property was immediately put on Airbnb, hosted by our Project Manager, Twinity.
Advantages For Sellers
Some home sellers opt for an off-market offer to test the waters and determine their property’s value.
Others want a private sales process or the ability to negotiate a lower sales commission because only one agent is involved.
Still, other sellers prefer to deal with a wholesaler and pocket the price they want without paying commissions.
Wholesalers operate as middlemen between a homeowner and investors.
A wholesaler puts a seller’s home under contract at an agreed price.
Then he finds an interested investor to buy it.
A wholesaler assigns their rights in the contract to a buyer at a higher price than the price contracted with the seller.
He gets to pocket the difference.
Potential buyers will make low offers for a live listing if the home is on the market for more than 30 days.
How Investors Win With Off Market Properties!
For property investors, the benefits of finding an off-market home listing are twofold.
For starters, you get access to inventory that fellow homebuyers don’t get to see.
If you are buying in a hot market, these pocket listings may be the only way to purchase a home.
You may get a deal in regular market climates partly because the seller’s commission is lower.
Not all homebuyers are searching for a primary residence.
Investors primarily look for investment property or homes to buy and flip for a profit.
So an off-market listing in a good school district and safe neighborhood can be an excellent way to accomplish your investment goal.
Contact Real Estate Agents
Once you’ve found the area you want to buy in, you’ll need to make a list of the best real estate agents and approach them about exclusive off-market listings that they might have.
You will need to do a bit of legwork and networking if you want to get hold of a traditional, exclusive home for sale that is not listed on the market.
Can You Find Off Market Property Online?
In addition to contacting real estate agents directly, nowadays, buyers have ready online tools to find non-MLS listings that include For Sale by Owner (FSBO), newspaper classifieds, or even Craigslist.
Other popular websites for US real estate listings are:
Homes for Heroes
The online website Zillow is comprehensive and has several off-market programs available to potential sellers and buyers.
One of the strategies that NSI employ is to use the option to check in with homeowners directly.
Even if you can find a lead by knocking on doors or sending out direct mail – that will cost you time and money with no guarantee of success.
While the chance that one person will respond is there, unsolicited offers are a blessing to both sellers and buyers.
You can consider neglected and run-down properties, especially if you’re interested in House Flipping.
Think of the ugliest house on the prettiest street, and you get the idea.
Sometimes you could find a homeowner overwhelmed with maintenance costs but doesn’t have the means to connect to a real estate agent to get it listed.
And some who have been waiting to sell but could not find a buyer.
One of the things with properties is you never know until you ask.
Know The Process
Finding an off-market deal is only half the battle.
In the end, it’s all about getting a deal done.
It’s always a challenge for buyers when the asking price is higher, which in turn means a higher commission for the agent.
When you buy in a market with low inventory, you may not get the best offer, but as long as you get the house – it is well worth the effort.
The Bottom Line
Real estate is hyperlocal, and in many US counties, there may be more demand than inventory.
It is easy to be frustrated as many buyers have been bid out on potential homes that “everybody” seems to want to buy.
You can find some decent properties a little above your budget on some listings.
If you find those listed for over 30 days and are unsold, there’s a good chance you can negotiate for a lower price.
Some listings show homes that seem to fly off the moment they are listed.
Whatever the case, at NSI, we do our homework and mitigate the risks for the best investment returns.
Finding the next investment through Off Market Properties can be worth the effort.
DISCLAIMER: Any information or advice available on the Noble Sky International website is only intended for educational and general guidance. Noble Sky Core LLC and Noble Sky Institute Pte. Ltd. shall not be liable for any direct, incidental, consequential, indirect, or punitive damages arising from accessing or using any of the content available on this channel. Consult a financial advisor or other wealth management professional before you make investments of any kind.