10 Underrated Places to Find Your Next Real Estate Investment
Strategies for complete beginners and seasoned investors looking to scale their portfolio in any economy
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Now onto today’s real estate guide.
In the multifamily real estate game, I’m always looking for great deals.
The MLS listings have their place. But sometimes the best deals are hidden away, waiting for the smart money to find them.
Here are 10 unconventional places to find your next multifamily investment deal.
1. Estate Sales
Emotional circumstances can prompt families to opt for quick property sales.
How it works:
Attend estate sales in your desired area.
Foster relationships and show genuine interest in the property.
Example: You might land a duplex valued at $500,000 for just $450,000, given the family's wish for a quick transaction.
2. Retiring Landlords
Aging landlords often want an easy exit from the rental hustle.
How it works:
Network at local real estate events.
Build relationships and propose a hassle-free solution.
Example: A tired landlord might offload a fourplex, worth $700,000, for $650,000 to avoid the lengthy listing process.
3. Divorce Homes
Splitting assets can lead couples to liquidate properties.
How it works:
Network with divorce attorneys.
Approach both parties with a respectful offer.
Example: A couple might be keen to divest a triplex worth $600,000 for $550,000 to swiftly finalize their proceedings.
4. Abandoned Properties
Neglected multifamily homes often hint at eager sellers.
How it works:
Scour neighborhoods for signs of neglect.
Use local records to trace and contact the owners.
Example: I did this with an abandoned car dealership in North Dakota and made $900K profit with close to zero taxes.
5. Online Communities like LinkedIn
Before properties hit the broad market, they often surface in niche circles.
How it works:
Be active on LinkedIn and Instagram in the real estate niche (best for me)
Build genuine relationships and express your buying intent.
Example: I’ve had multiple profitable deals land in my DMs by simply being active on LinkedIn and Instagram.
6. Auctions
Distressed properties or those in foreclosure often end up at auctions.
How it works:
Research upcoming auctions in your region.
Set a budget and stick to it.
Example: A multifamily unit, valued at $500,000, might be won at an auction for a mere $420,000.
7. Drive Your Neighborhoods
Physical scouting can reveal overlooked opportunities.
How it works:
Systematically drive through target areas.
Note down potential multifamily homes showing signs of sale or neglect.
Example: Spotting an unmaintained quadplex might lead to an off-market deal below its actual value.
8. Local Builders and Contractors
Our crew at MAK Construction gets to see all kinds of properties ripe for transition.
How it works:
Regularly check in with local contractors.
Offer them incentives for leads on potential deals.
Example: A builder might tip you off about a client wanting to sell a duplex, presenting a prime opportunity before it hits the market.
9. Wholesale Deals
Wholesalers can offer properties at significant discounts.
How it works:
Cultivate connections with reputable wholesalers in your area.
Regularly discuss the kind of properties you're looking for.
Example: Partnering with a wholesaler might get you a triplex worth $650,000 for only $590,000.
10. Property Management Companies
Landlords thinking of exiting often convey their intentions to their managers first.
How it works:
Forge alliances with property management firms.
Express your interest in potential listings before they go public.
Example: A property manager might clue you in on a quadplex their client is contemplating selling, allowing you to make a preemptive offer.
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