Real Estate Rookie Podcast Summary

Episode: The BEST Ways to Find “Rare” Off-Market Real Estate Deals in 2025 (Rookie Reply)
Release Date: January 10, 2025
Hosts: Ashley Kehr and Tony J Robinson
Description: Hosts Ashley Kehr and Tony J Robinson delve into effective strategies for discovering off-market real estate deals, addressing common rookie challenges, and providing actionable insights for budding real estate investors.

1. Introduction to Off-Market Deals

The episode kicks off with Ashley and Tony introducing the topic of off-market real estate deals, emphasizing their importance in a constrained supply market. They highlight the value of the BiggerPockets forums as a resource for new investors to seek advice and strategies from experienced members of the community.

2. Understanding Off-Market Deals

Tony shares his experience, revealing that approximately 50% of his single-family home acquisitions come from off-market transactions. He explains the various sources of these deals, including direct mail campaigns, relationships with wholesalers, and connections with agents and builders who present properties not listed on the MLS.

Tony J. Robinson [02:10]: "Probably close to 50% somewhere in that ballpark... some from wholesalers that we've built relationships with and others from agents that we've built relationships with where the properties never listed."

Ashley adds that her portfolio consists of about 35-40% off-market deals, primarily through pocket listings and properties not immediately visible on the MLS.

Ashley Kerr [02:48]: "Probably 35 to 40% off market... mostly have been on market deals."

3. Strategies to Find Off-Market Deals

a. Leveraging Wholesalers and Online Communities Ashley suggests several methods beyond "driving for dollars" to find off-market properties:

• Google Searches: Using terms like "sell my house fast" to identify wholesalers actively seeking buyers. Contacting these wholesalers directly with your buy box can lead to exclusive deals.

  Ashley Kerr [04:40]: "Another way is to actually Google 'sell my house fast' and 'we are going to be wholesalers looking for leads.'"

• BiggerPockets Forums and Meetups: Engaging in online forums and attending physical meetups can help investors connect with local wholesalers. Networking events often provide opportunities to state your investment criteria and find suitable leads.

b. Direct Sourcing and Marketing Tony elaborates on sourcing deals independently through:

• Direct Mail Campaigns: Sending postcards to property owners can yield results, as demonstrated by his experience where a single postcard drop led to an off-market deal after multiple touches.

  Tony J. Robinson [12:19]: "The first phone call that we got from the very first ever postcard drop... became our first off market deal."

• Expiring Listings and Stagnant Properties: Targeting properties that have been listed but remain unsold can be a fertile ground for negotiations. Tony emphasizes submitting multiple offers, often below the listing price, to increase the chances of success.

  Tony J. Robinson [06:34]: "The listing prices are often just a suggestion and you should in no way, shape, or form treat the listing price as the end all, be all."

c. Utilizing Technology and Tools Ashley recommends using platforms like PropStream and Privy Pro to filter properties based on specific criteria (e.g., mentioning keywords like "TLC," "cash," "investor") and streamline the deal-finding process.

Tony J. Robinson [07:38]: "Privy Pro is very similar to PropStream but with a more updated UI and easier comparison tools."

4. Approaching Seller's Agents Directly

Ashley and Tony discuss the benefits of directly contacting seller's agents rather than going through your own agent, which can sometimes lead to frustration due to repeated lowball offers. Tony shares his straightforward email approach to streamlining communications:

Tony J. Robinson [09:48]: "I keep it simple, just hey, here's my price, here are my terms, here's when I can close."

This method reduces the back-and-forth with buyer's agents and increases the efficiency of the negotiation process.

5. Importance of Relationship Building

Both hosts stress the significance of building strong relationships with a few key wholesalers or agents rather than having a vast but shallow network. A few reliable contacts can consistently provide a steady flow of off-market deals.

Tony J. Robinson [03:44]: "You only need a couple of really good relationships to be able to feed you enough volume of deals that you're looking to add to your portfolio."

6. Direct Analysis and Due Diligence

Ashley emphasizes the necessity of performing your own deal analysis, regardless of the sourcing method. Relying solely on wholesalers or agents can lead to misinformation about property values and repair costs. Conducting independent research ensures accurate assessment of investment opportunities.

Ashley Kerr [12:19]: "No matter how you're sourcing your deals... you're doing your own deal analysis... make sure you're doing your own homework."

7. Market Research Before Investing

In response to a listener's question, Ashley and Tony outline critical indicators to consider before investing in a property, especially in high-cost markets like Seattle:

• Personal Goals and Motivations: Understanding why you’re investing—whether for cash flow, appreciation, or tax benefits—guides your investment strategy.

  Tony J. Robinson [16:33]: "Establish and understand your own goals and your own motivations."

• Budget and Purchasing Power: Determining how much you can afford, including down payments and loan pre-approval, helps narrow down suitable markets and properties.

  Ashley Kerr [18:31]: "Setting your budget... get a pre-approval to see what that would be."

• Market Analysis Tools: Utilizing resources like Neighborhood Scout and Bright Investor to evaluate neighborhood data, crime rates, school districts, and market trends.

• Landlord-Friendly States: Focusing on states with favorable rental laws can enhance profitability and reduce legal complexities.

8. Handling Tenant Lease Challenges

The episode also addresses a scenario involving tenant lease termination due to personal circumstances. Tony and Ashley advise maintaining open communication with tenants, assessing their ability to continue rent payments, and considering month-to-month agreements to evaluate the situation before making a final decision.

Ashley Kerr [30:49]: "Ask for an updated proof of income to show that they can continue to afford the apartment on their own."

Tony J. Robinson [33:04]: "I love the idea of going month to month because it gives both the tenant and the landlord the ability to assess on a more shorter timeline."

9. Community Engagement and Resources

Towards the end, Ashley encourages listeners to engage with the BiggerPockets community through forums, YouTube channels, and upcoming events like BiggerPockets Momentum 2025. This engagement provides additional support, resources, and networking opportunities for real estate rookies.

Ashley Kerr [13:03]: "Head over to our YouTube channel... Join us at BiggerPockets Momentum 2025... go to biggerpockets.com/summit."

Key Takeaways:

• Off-Market Deals: Represent a significant portion of real estate investments and can be accessed through strategic networking, direct marketing, and leveraging online tools.
• Relationship Building: Establishing strong connections with a few wholesalers or agents is more effective than a broad, unfocused network.
• Independent Analysis: Always perform your own due diligence to ensure the validity and profitability of potential deals.
• Market Research: Thoroughly assess your investment goals, budget, and preferred markets to make informed purchasing decisions.
• Tenant Management: Handle lease challenges with empathy and strategic flexibility, considering month-to-month agreements to evaluate tenant's capability.

Notable Quotes:

• Tony J. Robinson [02:10]: "Probably close to 50% somewhere in that ballpark... some from wholesalers that we've built relationships with and others from agents that we've built relationships with where the properties never listed."
• Ashley Kerr [02:48]: "Probably 35 to 40% off market... mostly have been on market deals."
• Tony J. Robinson [07:38]: "Privy Pro is very similar to PropStream but with a more updated UI and easier comparison tools."
• Ashley Kerr [12:19]: "No matter how you're sourcing your deals... you're doing your own deal analysis... make sure you're doing your own homework."
• Tony J. Robinson [16:33]: "Establish and understand your own goals and your own motivations."
• Ashley Kerr [18:31]: "Setting your budget... get a pre-approval to see what that would be."
• Ashley Kerr [30:49]: "Ask for an updated proof of income to show that they can continue to afford the apartment on their own."

Conclusion

This episode of Real Estate Rookie serves as a comprehensive guide for new investors seeking off-market real estate opportunities. By combining personal experiences, strategic advice, and practical tools, hosts Ashley Kehr and Tony J Robinson equip listeners with the knowledge to effectively source, assess, and manage real estate deals. Engaging with the BiggerPockets community and continuously honing one's market analysis skills emerge as pivotal steps towards successful real estate investing.