Hello, this is Shuo.
So what is an off-market sale? Off-market sale is a term used to define property that is selling without any public advertising, transactioning, or not on the market. Buyers source off-market deals often through relationships or direct-mail campaigns. Benefits of it will be less-competing offers, maybe more flexible closing dates, smaller deposits, longer escrow, etc.
However, off-market deals often are mom and pop shops so it’s smaller units, 60-below usually, some more sophisticated property sellers would much rather go through the normal leasing process unless they received a really high rate. So in this case, a party buying an off-market deal does not necessarily mean they’re getting a good deal.
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Patrick Grimes is a design engineer and CEO and Founder of Invest on Main Street, LLC. His real estate holdings include general partner ownership of a multifamily and single-family real estate portfolio valued over $146M, including 1,950+ units across the southeastern United States and Texas.
He has been active in real estate investment since 2007, including purchasing land and distressed assets, renovating them, and stabilizing them for long-term cash flow. To scale his real estate portfolio, Patrick moved from single-family to multifamily investing and founded Invest on Main Street, a private equity firm specializing in multifamily value-add projects in emerging markets.