Off-market property deals are a great chance to grow your investment portfolio as they offer a number of benefits that make them stand out from the rest of the investment opportunities on the Houston MLS; here are just some:
Less Competition For Buyers
Off-market deals allow buyers to find properties that are not open to the public. This creates a situation with limited to no competition making offers to purchase the home. Less competition means one thing, lower prices. This can lead to getting a better deal, more negotiating power, and a better price overall.
Adjustable Transaction Times
You may find that sellers aren't in a hurry when it comes to off-market real estate sales. So, as a potential buyer, you can take your time and be cautious before bidding. At this stage, you should call a trusted contractor to give you a quote to repair the property. We have provided hundreds of investors with a detailed scope of work, enabling them to make an impact with the sell-side, and helping them negotiate better deals.
If you have a property you would like to receive an estimate on, give us a call at (832) 767-1581.
It is important to note that certain transactions, such as foreclosures and short sales, may require a faster completion process. In these cases, a more significant discount on the purchase price can often compensate for the lack of time.
Creative Opportunities
Some off-market real estate listings may be due to unfortunate circumstances on behalf of the seller. There may be financial distress or just an owner who wants to quickly (quietly) vacate the property. These situations benefit buyers and sellers, offering investors attractive contractual benefits and profit margins.
Drawbacks Of Off Market Properties
There are so many benefits to off-market trading that it can be difficult to think about anything else. However, there are a few downsides to off-market real estate to keep in mind:
Lack Of Availability: The number of pocket listings bought and sold has decreased significantly in light of the NAR's new guidance. This doesn't mean that availability is a thing of the past. You will, however, have to remain patient for an opportunity to come your way.
Hard To Find: Given the changes in availability, investors should ensure that they are not just relying on a single lead generation technique and are instead utilizing multiple lead generation techniques simultaneously. This will make it easier for them to trade at the pace they want and provide them with a wide range of strategies that can be applied to any given situation.
Inexperienced Sellers: One of the exceptions to MLS Statement 8.0 relates to Property Sale by Owner(FSBO). These do not have to be marketed like other offers; however, investors may find it more difficult to channel FSBO transactions depending on the circumstances.
Summary
Overall, off-market real estate sales can offer various benefits to investors who know what they're doing. With less competition and flexible negotiation, off-market real estate can provide investors with substantial profit margins. While not listed on the MLS, there are several strategies investors can employ when learning to find off-market real estate deals. I often advise investors to use more than one strategy at a time.
Are you ready to seize the current Houston real estate market opportunities?
Whether you’re brand new to investing or have closed a few deals, we are happy to manage the entire renovation process for you. This allows you to spend more time focused on finding your next deal. You can put your mind at ease knowing your property is in the hands of an experienced contractor and fellow investor. We understand what investors want with their properties because we also invest in the robust Houston market.
If you have a property you would like to receive an estimate on, call us at (832) 767-1581.