How to Find off Market Real Estate Deals and Listings
With Ed Rogan, Co-Founder
The very first deals we got were off market that way, where we where we had a list. We had access to a database that allowed to call the owners directly. A lot of times you got big firms where you had to go through gatekeepers but every once in a while you got like a small mom and pop owner who directly owned the property was the decision maker. And those calls were actually a bit easier than calls to try to sell something or raise money because those people will always be interested until you get to the point where you start talking price because they always want to know if, is this guy some guy who's willing to pay some exorbitant amount of money for my property? Now, the beautiful part of real estate is because it's a private market asset and because there is no general marketplace where real estate trades and it is a liquid you have owners of properties who have owned for maybe 15, 20 years, and they may have bought the property back in 1995 for, five thousand dollars a door at the time, which might have been market price to them.
And, this owner, this hypothetical owner may not have any debt currently on the property. So the rents are depressed and the rents aren't depressed because they're not doing a good job it's just because they have no debt service that they're paying, their properties are occupied and they can keep the rents low because they keep the place occupied and they're cash flowing like crazy. So they have no incentive to do it to, shake the apple cart. And the good thing about those opportunities to them, you might they might think you're offering some exorbitant crazy amount because you're offering to pay fifty five or sixty five thousand dollars or were they paid back in 1995, five thousand, But in reality you're fifty five thousand a door, sixty thousand a door today, is below market by fifteen or twenty thousand dollars. So in reality you're actually getting a great deal. They think they're getting the steal.
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