We are new to U.S. real estate investing and are looking to acquire a mid-sized portfolio and are open to a number of asset classes. We are obviously aware of a number of deals that are publicly being offered, but are interested in seeing deals that are not so visibly touted. What is the best way to find off-market deals in the U.S.?
Answers
The fastest route to off-market deals is working with the right people in your market. Real estate is a people business and it is all a question of who you know. I am working on an advisory assignment for a doctor who is interested in a medical office building on the east end of Long Island. I know the best broker in the market and have worked with her for years. Not only did she find an off-market deal, but she also found a developer friend who offered to build out a medical office building in his new centrally located center. I am a great believer in working with the right people. There may be a cost in the beginning, but with the right people, there is always value added.
Very difficult for an offshore investor, as it takes deep relationships with various real estate owners or industry professionals to find off-market opportunities. Often, a leading lawyer, accountant or other advisor will have knowledge of such an opportunity in a particular market, but those are very hit-and-miss, and most off-market deals happened either when principals know each other or there is a common personal relationship with an individual that connects a buyer and seller.
Working with advisors who are connected into local markets and advisors who might be connected within a certain sector nationally.
Everyone seeks for off-market opportunities in every corner of the World! Our experience with acquiring 90% of our transaction off-market is by interactions with sellers by attending events that are non-related to the industry. For example, going to an event that is hospitality focused would not "always" be the right place to find off-market ops. However, going to a design and concept event has more building owners visiting for ideas, which allows interaction and personal dialogue to take place. Of course, this does not always work out but, it is always a start.
That is the work of consultants that have a broad base of contacts in each state. The consultant should look at real estate trends, developers, bank financing transactions (to the extent available) as well as real estate transactions that are recorded at the local government. It is very difficult being overseas to find off-market deals.