POST WRITTEN BY
Co-founder at Brevitas.com, building smart software for investment real estate transactions.
Many investors recognize the advantages of off-market real estate over listed properties, for a number of reasons. I have dealt with off-market sales for over six years and eventually built an online marketplace around private offerings, so I’ve heard every question and answer you can imagine. Let’s take a look at some of the specifics of what separates listed and private real estate deals.
What is the appeal of off-market real estate for investors?
One of the foremost benefits of buying a property off-market is that there is often lower competition. When working on acquiring a property, time is of the essence, and an investor can create better negotiating leverage by having fewer interested parties in the property. Often, finding an off-market opportunity can allow a clear window to negotiate and purchase the property under terms that benefit the investor.
Private offerings often also carry unique circumstances. Whether it’s a commercial or residential property, there is a reason the property owner is starting to look for potential acquirers. In the commercial space, properties are often sold privately due to the nature of the property and its current tenants. Hotels, office, retail and apartment buildings are sold privately in order to not disturb the current tenants or the business that is operating on the property. Investors can take advantage of the lack of investor awareness on the new investment opportunity as, often, brokers only send these offering to their trusted contacts.