How To Find Off-Market Properties In Colorado: The 5 Best Sources

Most real estate investors in Colorado begin their search for investment properties on on-market platforms like the Multiple Listing Service (MLS) and online databases like Zillow or RedFin; this is often a good strategy since these platforms always have properties up for sale. However, with every investor in Colorado scrambling for the same listings, it’s always a good idea to learn how to find off-market properties in Colorado.

If you've never ventured off-market, don't worry; this article will be your guide to off-market investments in Colorado. We'll cover everything you need to learn how to find off-market properties in Colorado, starting with the following:

• What Are Off-Market Properties In Colorado?
• How To Find Off-Market Properties In Colorado
• Alternative Strategies To Find Off-Market Properties In Colorado
• Colorado MLS Listings Vs. Non-MLS Listings
• Pros Of Off-Market Properties
• Cons Of Off-Market Properties
• Final Thoughts On Finding Off-Market Properties In Colorado

Understanding how to find off-market properties in Colorado is just the first step in mastering real estate investing in the Centennial State. Enroll in Real Estate Skills' free training program to increase your industry knowledge and take advantage of all the opportunities in today’s market. This course will help you build on your foundational knowledge and equip you with the skills needed to succeed in the competitive real estate landscape.

What Are Off-Market Properties In Colorado?

Off-market properties, also known as quiet or pocket listings, are homes for sale that are not available on Colorado's public real estate market. They're not on the MLS or any other conventional real estate database. Instead, they are privately marketed to a smaller pool of buyers for various reasons.

Investors should consider off-market properties because they often have less competition, allowing for better negotiation opportunities and potentially lower prices. These properties can be hidden gems, offering unique deals that are not available through traditional listings. By accessing off-market properties, investors can find lucrative investment opportunities that others may overlook, increasing their chances of higher returns.

Why Do Some Sellers Not List Their Properties

Off-market properties for sale take many forms, from for sale by owner (FSBO), pre-foreclosures, liens, and probate homes to zombie properties. That means sellers usually have different motivations for going off-market, including:

• Not Available: For every publicly listed property, the seller should be willing to provide a tour. Although their agent can also handle this task, some sellers choose to go off-market if they cannot personally attend showings.
• Seller's Market: In Colorado, like most real estate markets, demand for properties occasionally surpasses supply, creating a seller's market. Property owners usually have the upper hand when more buyers compete over their listings. In these instances, you'll find that buyers may proactively approach home sellers. Consequently, most sellers go off-market as it enables them to control the sales price.
• Pocket Listing: Some sellers, especially high-profile homeowners, may not want their sale to be public knowledge. Others usually want to create a sense of exclusivity and urgency among buyers. Such sellers often specifically instruct Realtors to market the property privately—formally known as a pocket listing.
• Coming Soon: Some sellers upload their properties to the MLS but use the description "coming soon." That typically means the property is still off-market. They do this to test the market before the official listing.
• Foreclosure With Tenants: Owners in pre-foreclosure, especially when they have tenants, often opt for off-market listings to avoid alerting their tenants of the foreclosure proceedings.

How To Find Off-Market Properties In Colorado

Since they are private, off-market properties can be challenging to find. However, you can use technology and online platforms to uncover these opportunities. Here are some of the best tools you can use to find off-market properties Colorado sellers are looking to unload:

• PropStream
• DealMachine
• Foreclosure.com
• Mashvisor
• Batchleads

PropStream

PropStream is a data-driven real estate software. The platform claims to have information on 180+ million properties, including off-market properties like pre-foreclosures, involuntary liens, and other private sources. As a result, it's a pretty viable option for investors seeking off-market properties in CO.

Beyond having multiple off-market property sources, PropStream makes browsing and generating leads seamless. Its property search feature allows users to combine up to 120 filters to generate the exact type of off-market property they're seeking.

For example, if targeting distressed, multi-family pre-foreclosures, you can combine these terms with filters like residential, vacant, HOA, abandoned, parcel lines, and multi-family homes. You can also narrow down to a specific zip code, city, or county to generate a highly targeted list.

Once you generate a targeted list, PropStream makes things even easier through a built-in marketing feature. It allows you to create and manage marketing campaigns right inside the platform, ultimately simplifying lead management.

PropStream's built-in marketing tool supports several marketing channels, including email and direct mail for real estate deals. Consequently, you can use multiple avenues to reach out to the leads, increasing the chances of a response.

Each listing you generate contains details like owner and agent contact information, property details, tax history, and neighborhood information. Add in that it has a skip tracing tool and hunting down off-market property owners or their agents is so much easier. However, due to the large amount of data, the platform presents a bit of a learning curve.

Read Also: PropStream Review

DealMachine

DealMachine is real estate software designed to simplify the age-old marketing strategy of “driving for dollars.”

It lets you capture pictures and upload addresses of properties you identify while driving for dollars straight from its app. It then checks this data against its database of over 150 million properties to generate details you can use to determine whether a property is a viable off-market investment opportunity. These details include market status, owner's contact information, and physical property details like sqft and bds count.

DealMachine also offers an option to create a postcard with the property's picture on-site. So, if it's a property that fits your portfolio, you can generate and drop this postcard in the mailbox instantly; this not only eases outreach but also increases the probability of a response, as the owner is more likely to respond if they see a picture of their property.

Additionally, the app has route tracking to help users avoid covering the same area twice and a built-in CRM for easy lead management. And suppose you need help determining where to drive for dollars. In that case, DealMachine's property database, with over 70 prebuilt filters and 700 data points, can help you identify areas with a high rate of off-market opportunities.

Note, DealMachine has a mobile app. Consequently, you can gather information on off-market properties you bump into even during your free hours.

Read Also: DealMachine Review

Foreclosure.com

Foreclosure.com is a real estate website that specifically features off-market properties. It has over 2 million off-market listings ranging from pre-foreclosure, foreclosure, and REOs to distressed homes. The site pulls these listings from various sources like bank websites, mortgage records, and public databases such as courthouses and county registrars; this provides off-market property investors with an array of off-market investment opportunities to select from, allowing them to diversify their portfolios to reduce risk.

Each listing comes with detailed information such as square feet, parcel lines, property history, and neighborhood details. This data allows users to seamlessly analyze the potential profitability of each property they're considering. Foreclosure.com also offers a search function and a range of filters for users to define their search easily. For example, you can narrow down your search to a specific county like Montrose or Longmont. That'll allow you to identify off-market Colorado homes within your area of operation.

Read Also: Foreclosure.com Review: Is It Worth It For Real Estate Investors?

Mashvisor

Mashvisor, a California-based real estate website, offers tools and features that facilitate lead-finding for all types of investment properties, including off-market homes. Its marketplace features different kinds of off-market homes, including foreclosures, tenant-occupied, tired landlords, and distressed homes.

The site's search function allows you to narrow your search to match the exact criteria of off-market properties you wish to invest in. Once you generate search results, Mashvisor offers various tools you can utilize to gauge the potential of each investment in Canon City or other Colorado regions. For instance, since each search yields multiple properties, Mashvisor offers an investment property calculator so users can determine which properties have the highest potential for profits.

Each property also comes with an analytics page offering detailed information to assess profitability. Mashvisor's heatmap is quite handy for those targeting specific neighborhoods. This tool provides a color-coded overview of off-market properties based on factors like price, with red for low and green for high.

Additionally, there's an insights tab with information on that neighborhood's real estate performance and the optimal property type to go for if you want to invest in that area. These tools and the information they provide make it easier to identify the most profitable off-market investments.

Read Also: Mashvisor Review: Pricing, Competitors, & Promo Code

Batchleads

Batchleads is a real-estate software tool with features that streamline off-market lead finding, management, and even marketing. The platform aggregates property data from 3100+ counties, including those in Colorado, providing a vast database for finding off-market opportunities. Users can combine up to 300+ data points to generate hyper-specific off-market lists.

Each listing has a detailed profile with property information, making it easy to assess whether the property is worth pursuing. Add in the deal analyzer, and identifying the most profitable off-market deals becomes a walk in the park.

Notably, the profile also features owner-contact information, so you can easily reach out to the owner if a property fits your investment criteria. If the provided owner contacts prove unproductive, Batchleads has a skip-tracing tool to find the right contacts. Users can also upload their lead lists to uncover more data and remove duplicates.

For outreach and marketing, BatchLeads provides built-in tools like BatchDialer, SMS, direct mail, and a CRM for seamless marketing campaigns and lead management. Furthermore, BatchLeads offers both physical and virtual tools for driving for dollars.

Read Also: Batchleads Review

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Alternative Strategies To Find Off-Market Properties In Colorado

Whether you decide to integrate PropStream or any similar tool into your lead generation tactics, here are some alternative strategies you can combine with these tools to seamlessly find off-market properties in Colorado:

• Engaging With Real Estate Agents & Brokers
• Networking With Other Homebuyers & Investors
• Local Courthouse & Public Records

Engaging With Real Estate Agents & Brokers

Agents, Realtors, and brokers are generally among the first to learn of off-market opportunities because if they aren't handling the sale, they know someone who is. Whether you already know how to flip houses in Colorado or how to wholesale real estate in Colorado, cultivating relationships with these professionals ensures you'll be among the first investors to learn when off-market opportunities come up.

Networking With Other Homebuyers & Investors

Is wholesaling real estate legal in Colorado? Yes, wholesaling is legal, which means plenty of investors may be looking to find buyers to assign their Colorado real estate contracts to—there’s no reason it can’t be you. Savvy homebuyers and investors are often well-connected in the real estate market. That means they may not only have heard of off-market opportunities through their contracts but may even have extra pocket listings they're willing to share within their network.

Building relationships with such individuals enhances your chances of being informed of such opportunities. Furthermore, they'll prioritize you for collaboration or referrals when overloaded with off-market projects.

Local Courthouse & Public Records

Foreclosure proceedings are a public affair in Colorado, which makes learning how to buy foreclosed homes in Colorado slightly easier than many assume. Any related notices are added to the courthouse and public records. For example, when a property is in pre-foreclosure, lenders in Colorado are legally mandated to issue the owner a foreclosure notice in advance. They must also file this notice with the local courthouse and publish it in a local newspaper; this makes the local courthouse records, newspapers, and other public records reliable sources when seeking this category of off-market properties.

Colorado MLS Listings Vs. Non-MLS Listings

Non-MLS properties such as foreclosures, off-market homes for sale by owner, and zombie homes undoubtedly bring unique perks to the table, but that doesn't mean you should ditch the MLS entirely. As an officially recognized property database, the MLS is a centralized listing service that brings buyers, sellers, investors, and real estate professionals together; this creates a larger pool of properties, allowing you to find properties that perfectly align with your investment criteria in Colorado.

The large property selection also means you can diversify your portfolio by investing in different types of properties across various locations, hence spreading risk and increasing your returns. The MLS' broad property pool also creates more data points for performing a market and property value analysis in your target locations in Colorado; this empowers you to make informed investing decisions and capitalize on emerging opportunities that other investors may still need to learn of.

Furthermore, there's a real estate agent or realtor behind every MLS listing; this creates transparency in the acquisition process and access to professional guidance, which is particularly beneficial for newbies. Simply put, combining MLS and non-MLS listings maximizes your chances of finding profitable investment properties and improving your bottom line. To help you find properties like a pro, Real Estate Skills offers a unique, free training program for investors seeking to enhance real estate investing pursuits.

Our course covers the various aspects of MLS investing, such as accessing the MLS without a license. It also covers multiple investment strategies like wholesaling, house flipping, and vacation rental investments, arming both new and seasoned investors with the prowess to maximize the potential of MLS listings. Begin our comprehensive program today to start carving your path to success in Colorado's real estate market.

Read Also: How To Get MLS Access In 6 Ways (Even Without A License)

Pros Of Off-Market Properties

Check out the perks you'll enjoy when you invest in off-market real estate in Colorado:

• Reduced Competition: Off-market properties are only shared with a select group of buyers. This limited exposure cuts competition by half, increasing your chances of securing it. Additionally, the acquisition process becomes less hectic as you won't deal with cut-throat bidding wars.
• Lower Sale Price: Reduced competition usually means diminished demand. This grants investors like yourself a leg up in negotiations and, ultimately, a lower sale price.
• Flexible Transaction Timelines: Unlike publicly listed properties, off-market listings aren't subject to rigid deadlines and procedures. This allows for a more accommodating sale process. Investors can even negotiate more time with the owner to secure financing.
• Unique Investment Opportunities: Venturing off-market unlocks access to uniquely featured properties you may not find on traditional channels like the MLS.

Cons Of Off-Market Properties

While off-market properties no doubt offer unique benefits, they also come with drawbacks like:

• Limited Availability: Most property owners and investors prefer to list and market properties privately. Consequently, off-market properties are usually quite few.
• Difficulty Finding Properties: Besides being few, off-market listings are usually advertised to private networks, making them incredibly hard to find, especially if you've no connections.
• Challenges With Inexperienced Sellers: Most sellers who use the off-market route do so due to privacy, control over the sale process, or urgency. For instance, most pre-foreclosure sellers often go off-market to find buyers quickly and avoid foreclosures. As a result, some off-market sellers may be inexperienced, which creates a stressful acquisition process.

Final Thoughts On Finding Off-Market Properties In Colorado

Specializing in off-market investment properties offers an unbeatable range of benefits, from reduced competition and unique investment opportunities to pricing and transaction flexibility. However, to enjoy these perks, you must know how to find off-market properties in Colorado. Our guide above not only explains the meaning of off-market properties but also provides tools and strategies to help you find and maximize access to these opportunities, ensuring you can take full advantage of the Colorado real estate market.

Now that you've learned how to find off-market properties to invest in, take the next step towards success by enrolling in Real Estate Skills' free training program. This course will equip you with the knowledge and skills needed to excel in real estate investing. Don’t miss this opportunity to boost your expertise and achieve your investment goals. Sign up today and start your journey to becoming a successful real estate investor!

*Disclosure: Real Estate Skills is not a law firm, and the information contained here does not constitute legal advice. You should consult with an attorney before making any legal conclusions. The information presented here is educational in nature. All investments involve risks, and the past performance of an investment, industry, sector, and/or market does not guarantee future returns or results. Investors are responsible for any investment decision they make. Such decisions should be based on an evaluation of their financial situation, investment objectives, risk tolerance, and liquidity needs.