In this video, Alex Martinez shares his experience of purchasing a seven-figure off-market multifamily deal with his partners in San Diego! Alex also provides two reasons why shifting focus to on market deals can lead to getting off market properties for wholesaling, fixing & flipping, & for even purchasing rental property.
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He explains that his journey as a real estate investor began with wholesaling on market properties over a decade ago. Now Real Estate Skills teaches hundreds of others to do the same.
The first reason is efficiency! By focusing on on-market deals, Alex and his team eliminate the need for daily lead generation or spending 10’s of thousands on marketing each month! They discovered that many distressed leads necessary for a successful real estate investing business are already listed by real estate agents and brokers on the Multiple Listing Service (MLS).
The second reason is the opportunity to build relationships with real estate agents. Alex emphasizes the importance of treating agents as more than transactional partners. By understanding, befriending, incentivizing, and building rapport with agents, real estate investors can secure deals currently on the market and cultivate relationships for future deals.
Alex shares an example of a successful off-market wholesale deal that came about through his relationship with a real estate agent. The agent connected him with a distressed seller who wanted a straightforward transaction without putting the property on the market. Through trust and reliability, Alex and his partners were able to successfully wholesale the deal.
Another reason why on-market deals can lead to off-market properties is that every property on the market originated as an off-market deal. Real estate agents and brokers invest significant amounts of money each month to generate off-market leads, which they later list for sale. By focusing on the market, wholesalers, fix & flippers, and investors can leverage the agents' marketing efforts, allowing them to concentrate on making quality offers rather than spending their own capital and time on lead generation.
Alex further emphasizes the advantages of working with real estate agents who are in direct contact with distressed motivated sellers, cutting through the noise of lead generation activities. By developing relationships with these agents, investors can receive off-market deals without constantly seeking new opportunities themselves.
Alex showcases a recent off-market deal they acquired in San Diego—an apartment building that was able to be purchased below market value. The deal came about through relationships built with agents and brokers over time. The property's location, desirable for buyers and sellers, combined with seller financing, presents the potential for substantial long-term cash flow and significant upside if they decide to sell in a few years.
Alex concludes by encouraging viewers to take action and start wholesaling real estate. He shares that wholesaling was his entry point into real estate and remains a part of their business today.
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00:00 Intro
00:22 Why Focus On On-Market Deals?
00:55 1st Example Of The Importance Of On-Market Deals
01:16 1st Reason On-Market Leads To Off-Market Properties
02:35 Example Of Maintaining Great Relationships Leading To Off-Market Deals
03:49 2nd Reason On-Market Leads To Off-Market Properties
04:44 Avoiding Beginner Wholesaler Mistakes
05:30 Example Of What’s Possible When You Wholesale Real Estate
06:55 Great Way To Start Out As A Real Estate Investor
07:38 Conclusion
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📝 Disclaimer:
This video is not personalized financial or legal advice for the viewer.