The popularity of property flipping has rapidly increased due to numerous features in the media over the last few decades. Home design channels, magazines, and real estate influencers have transitioned flipping single and multi-family homes into its own sector within the real estate industry. As time continues and the real estate market changes, property investors are continuing to build their portfolios with different investment properties that they can buy, flip, and re-sell for a hopeful profit, depending on what goes into the project.
For investors, finding the right property is critical and not always conventional. Experienced investors know the right property may take a while to find, and they’re always prepared to take the necessary steps to find it and maximize their return. Off-market deals are usually a hot commodity for property investors and flippers due to low competition and the potential for a quick sale. While these “hidden” gems aren’t technically active listings featured on the local Multiple Listing Service (MLS), there are plenty of ways for investors to go about finding them.
Like any form of business, networking is a fantastic way for investors to find solid property leads. Estate attorneys, local real estate agents, wholesalers, and builders can help investors seek out different opportunities that they may not be aware of. Builders and contractors, for example, can be a fantastic resource in finding unfinished projects that can quickly be picked up where they left off and turned into a profit.
Auctions are the home of foreclosures, short sales, and bank-owned properties. For property investors, auctions can provide a wide variety of off-market options that are perfect for flipping. Investors can choose to participate in physical auctions or utilize online auction websites. Remember, investors need to conduct the necessary research before moving forward with a purchase. Location, auction status, and bidding procedure are important aspects for an investor to consider.
A more traditional way of finding the right off-market property is direct marketing. Property investors use different marketing channels to advertise what their goals are. Local newspaper ads, postcards, and “snail mail” are common ways for investors to put their goals in front of the potential seller and hopefully generate business.