How I find off-market commercial real estate deals

Finding off-market commercial real estate deals can be a great way to gain an edge in the competitive world of commercial real estate investing. Especially if you’re in a hot market where it seems like every listing is overpriced or the opportunities just aren’t there.

Off-market deals refer to properties that are not actively listed for sale on the market, and you can often find better prices and less competition from other investors.

I’ve acquired over $50m in commercial real estate off-market and my brokerage team has advised on the acquisition of even more. Here are a few of the strategies we use to find off-market deals:

1. Networking

Your network cannot be understated - it’s all about who you know!

Building relationships with other industry professionals is one of the most effective ways to learn about off-market deals. Connect with other investors, real estate agents, and property managers to stay informed about potential opportunities.

You can find and start cultivating these relationships through online forums, social media groups (like our commercial real estate Discord server), or by attending local real estate networking events. Your network can even lead to joint venture opportunities, which is a phenomenal way to learn a new side of the industry while lowering your project risk.

They say your network is your net worth, so the more people you know and bring value to, the more people that can bring you value in return.

2. Direct mail campaigns

I’ve been a big fan of direct mail for quite some time. It’s one of those strategies that very few people in the commercial real estate world actually take advantage of but it can have some pretty strong returns.

Especially since it can be difficult to find phone numbers for property owners since they’ll often own these assets within some sort of entity like an LLC.

So, creating and sending direct mail campaigns to property owners in a specific area can be a great way to find off-market deals. This can include letters, postcards or flyers - it doesn’t really matter which direction you plan to take. 

You can find a list of mailing addresses from your local tax records to target specific neighborhoods or building types that align with your investment strategy.

The key to success here is in your consistency. We like to try and touch base with property owners once a quarter, but you could do more or less often depending on your goals and how many mailers you’re sending out at any given time.

Dive into my direct-mail strategy for commercial real estate.

3. Driving for dollars

This method is about as simple as it sounds.

You simply drive around in the specific areas that you’re looking to invest in and keep an eye out for properties that show signs of neglect or disrepair. Could be as small as the grass being overgrown and trash left out all the way to the building being boarded up and abandoned.

Property owners of these assets are usually more likely to sell off-market. Maybe they’ve inherited the project, moved away, or just cannot afford to maintain it to the level that it needs to be and there’s an opportunity there for you.

You can also use property data and mapping tools, like CRS data (which is a favorite in my office) to identify properties that meet your criteria and then stop by those addresses to see if they could be a fit for you.

Don’t be afraid to get out and knock on doors either - you’d be amazed at the amount of deals you can get done by being the only investor willing to stop by in-person.

4. Social Media

As wild as it sounds, I bought an office tower in downtown Chattanooga off-market through Instagram in January of 2021.

I had posted that I was traveling to Chattanooga for the day and interested in looking at any off-market opportunities that someone had since we were looking to make a move in the market.

One of my followers sent it to a buddy of his that I didn’t know, who ended up calling me, setting up lunch, and showing me three properties that we could buy. We had an offer out within a week and were under contract shortly thereafter.

Social media is a powerful tool that you should be tapping into if you haven’t already. The amount of people you can reach is massive and the more people that know what you’re looking for, the more likely they’re going to bring it to you!

It doesn’t really matter which platform you choose to go all-in on. I have friends that are equally successful in Twitter, TikTok, Facebook, and LinkedIn as I have been on Instagram and YouTube.

Just cultivate the right audience and share what you’re looking for with them..

5. Hire a commercial real estate broker

Now I know what you’re thinking - “Tyler, this is a list of ways you’ve found off-market deals and you own a commercial real estate brokerage”, but I have bought plenty of buildings through 3rd party agents that don’t work with my team. 

As outstanding as my team is, it’s impossible to have unlimited reach to find every single opportunity out there, so we expand our possibilities by working with other commercial real estate brokers and the results are well worth it.

Tapping into commercial real estate brokers can help you find off-market deals by using their industry connections and expertise to identify potential investment opportunities. They can also help you navigate the complexities of commercial real estate transactions, which can be pretty handy.

They’re already doing everything on this list and since you don’t have to pay their fees (they get paid by the seller), there’s no reason for you to try and do it on your own.

Don’t forget that off-market deals usually require more work and research to find, but the potential upside can be significant.

In fact, I went under contract on a property in East Nashville from a direct mailer campaign for $435k in May of 2020 that appraised for $650k prior to our closing on it simply because we bought it right.

By taking advantage of these strategies and building a strong network, you can increase your chances of finding off-market commercial real estate deals that align with your investment criteria.