While listings platforms and sales advertisements have their perks, the world of off-market property opens the door to unlimited commercial real estate potential. No matter your investment role or level of expertise, chances are, there’s an off-market property out there for you, just waiting to be discovered.

To help guide you through the world off-market property to find your next opportunity we’ll discuss the following:

Off-Market Properties for On-Target Deals

So, what exactly is off-market property and why does it matter? Here’s what you need to know…

Off-Market vs. On-Market

On-market listings are the properties that are actively being listed as “for sale.” Whether through a broker or by the property owner, these properties are being advertised to encourage buyers to make an offer.

Off-market properties are those that are not publicly listed for sale. Considering only a sliver of properties are ever listed for sale, the off-market pool is much larger. Access to the country’s entire supply of property and their corresponding decision makers expands a real estate professional’s entire scope of choices.

Why Off-Market Matters

Instead of limiting the number of property choices by focusing on those only listed as “for sale” through middlemen, searching for off-market allows commercial professionals to generate outcomes directly with property owners.

For buyers, developers, brokers, and other investors, conducting off-market deals enables the following:

  • Money saved on middlemen fees since they’re working directly with the owners and aren’t getting outpriced by other potential buyers.
  • Flexible financing opportunities from closely working with the owner and negotiating on a personal level.
  • Faster closing dates.

Flexibility, simplicity, and fewer fees spent on middlemen–these are all the perks of conducting off-market deals. But, how can you find them?

Luckily, off-market data can help expand your potential investment selection. Compared to the properties actively being advertised as “for sale,” access to the off-market sphere opens the door to a realm of possibility that may have been previously overlooked, or more likely, simply not known about.

 

How to Find Off-Market Properties

Although they aren’t actively listing their properties, you’d be surprised at how many owners may be actually interested in selling. From corporate owners with broad portfolios to local business owners, everyone has a price. By arming yourself with a robust off-market data platform, you can easily find the properties that interest you and the information you need to strike a better deal.

Finding Off-Market Properties Using Reonomy

With millions of commercial real estate properties throughout the nation, finding a place to start can be a daunting task. Thankfully, Reonomy OffMarket can help alleviate the challenges associated with the off-market property search.

Reonomy has information on 54 million properties across the United States. With a myriad of filter options on property details, users can run customized granular searches on each and every one of these assets and parcels of land.

To begin your off-market property hunt, consider the types of property you’re looking for; do you want to focus on a specific location? Maybe a certain industry, like retail or mixed-use? Think about what you’re looking for in a property, then use the below search filters to narrow your scope to your liking.

Location-Based Search

An easy way to kick off your off-market property search is via geography. Maybe you’re an investor who’s only interested in properties in Florida. With Reonomy OffMarket, you can either search for these using the map or with location-based filters.

Filtered Search

You can also use geographic filters in the Reonomy platform to run a location-based search. Find off-market property owners across the nation by state, city, county, zip code, or Opportunity Zone.

For example, maybe you want to focus on properties located in Florida’s Orange County. By typing in Orange County into Reonomy’s county field, you’ll be served up over 87,000 properties to further explore. You can refine this even more by adding more granular geographic filters, asset type, building characteristics, and sales/debt history.

Map Search

You can also search by the map. By integrating Google Maps, this user-friendly map makes it easy to scroll and zoom, and will automatically update with the commercial properties available in the location you focus on.

Asset-Based Search

You can also search for off-market property by asset type. From duplexes to farmland, Reonomy allows you to tailor your search based on different industries.

Maybe you’re interested in capitalizing on the industrial growth in the Orlando area, specifically in warehouses. Now that you’ve decided to hone in on these types of properties, you can deepen your search with the asset type. By clicking Asset Type in the search bar and choosing Industrial, you’ll have the option to serve up only the industrial properties in this area. Then, Reonomy allows you to get even more specific with your industrial search, with filter options like Warehouse, Facilities, and Public Storage.

 

Sales-Based Search

While owners of off-market properties might not be actively listing their property as “for sale,” it doesn’t mean it’s off the table. Searching by sales history and data can help you determine off-market properties that may have a higher chance of selling. For instance, owners that have owned their properties for 10+ years might be more interested in an off-market deal than new owners.

Reonomy allows you to search for properties by sale date, using either a custom or preset time range.

Debt-Based Search

Similarly, you can narrow your off-market property pool by searching via debt history. Owners who may be coming to terms on their loans may be more eager to sell compared to those who just took out a mortgage. You can also use debt information to identify properties in distress, furthering your chances of finding an owner likely to sell.

To find these properties, Reonomy allows you to filter using debt characteristics, like maturation and origination date. Let’s return to our original Florida example. You could refine your search for Orlando-based warehouses further by filtering out for properties with a maturity date in the next 90 days. From there, you’ll be served up all the properties with upcoming maturity dates, enabling you to handpick the properties you want to explore further.

Owner-Based Search

If you already know the name of the owner you’d like to see properties associated with, conduct a property owner lookup. This serves up the associated contact information, as well as the entire owner portfolio.

To run a property owner lookup, simply search via the owner information you already have. This can be done using either the name of the individual owner, the LLC, or the mailing address.  From there, access and explore the different properties to reference during your pitch.

 

Identifying Off-Market Opportunities  

Once you’ve narrowed your property pool to match the credentials you’re interested in, take a deeper dive into the property deals to identify which might be potential opportunities. Here’s how:

What to Consider  

There are a number of ways to pinpoint a potential seller. With Reonomy, you can explore a property’s specific details to determine whether or not the asset you’re interested in might be worth pursuing.

Sales History

To reiterate, sales history can help uncover specific details about an owner to help you determine if they may be in the market to sell. Each property in the Reonomy platform includes respective sales history to explore and learn more about. By clicking on your desired property’s Sales tab, you’ll be served up a list of recorded last sales, the associated buyer, the associated seller, and respective sales prices.

Beyond date of the last sale, leverage recent sales prices in conjunction with other data to determine the value of the property. If you believe the property is more valuable than the most recent sales price, you may be inclined to reach out and strike a deal.  

Debt History

Rich, granular debt history can also be beneficial in identifying off-market opportunities. Similar to Reonomy’s sales history, each property in the platform also provides ample debt history. Using this, you can compare properties and see which might be in need of refinancing sooner than others.

Owner Portfolio

Finally, you can decide whether or not a property may be a potential deal by exploring an owner’s portfolio. By clicking on the owner’s name in a property page, you’ll be taken to their entire asset portfolio and can see the other properties they own.

Seeing comparable properties under the same owner can help bolster your deal-making abilities when it comes time to reach out. Maybe there’s an opportunity to sell multiple properties opposed to just one. Additionally, check the owner portfolio to see if they’ve sold any other properties recently. Owners who have sold recently might be interested in selling again.

Unlocking Contact Information

Successful off-market prospecting strategies are contingent on the accuracy and availability of ownership information. Since these properties aren’t being listed on a platform or via a broker, it’s imperative users have the information they need to get to to the decision maker. Reonomy TrueOwner lets users retrieve these details in seconds.

Each property in the platform allows investors to see the names of owners associated with properties, then view their corresponding contact information. From there, users can negotiate directly with owners and ultimately unlock ‘deal making’. This eradicates hours spent digging through physical property records and county files, giving users time back in their day to nail their pitch. It also allows investors and developers to surpass the competition and create stronger off-market deals before others do.

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Reonomy also makes it easy to “pierce” the LLC. When properties are listed under an LLC, or Limited Liability Corporation, it makes it difficult to uncover true owners and decision makers. Reonomy users have the ability to go beyond the LLC to unearth individual owner names and their corresponding contact information, like phone numbers and mailing addresses.  

The opportunities in finding off-market properties are virtually endless. Thankfully, commercial estate data and powerful technology can help simplify your search from start to finish. Gone are the days of manual sourcing–the right real estate data platform can streamline your search so you can focus on unlocking stronger off-market deals.

Ready to take your next deal off-market? Start your free trial with Reonomy today.

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