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

While real estate investing is already incredibly profitable in The Aloha State, investors can increase returns by learning how to find off-market properties in Hawaii. This approach drastically reduces competition, leading to smoother and potentially more profitable transactions. It also facilitates portfolio diversification, easing investment risks. However, like every strategy, it comes with its challenges. Knowing both the good and the bad is the key to fully tapping into its potential.

Having said that, what is off-market real estate? To answer the question everyone is asking, we created an all-encompassing guide on off-market property investments in Hawaii. It'll also explore how to find off-market properties in Hawaii and how to combine them with on-market investing to empower investors to maximize their potential. Let’s start with the following:

• What Are Off-Market Properties In Hawaii?
• Why Do Some Sellers Not List Their Properties?
• How To Find Off-Market Properties In Hawaii
• Alternative Strategies To Find Off-Market Properties In Hawaii
• Hawaii MLS Listings Vs. Non-MLS Listings
• Pros Of Off-Market Properties HI
• Cons Of Off-Market Properties HI
• Final Thoughts on Finding Off-Market Properties in Hawaii

Understanding how to find off-market properties in Hawaii is just the first step in mastering real estate investing in The Aloha 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 Hawaii?

Off-market properties in Hawaii are houses for sale that are not listed on the MLS. These homes might be uploaded to the MLS for 24 hours per the NAR Clear Cooperation Policy but removed and sold offline. So, unlike on-market homes, you will never find an off-market listing on the MLS, Realtor.com, Zillow, or other similar databases.

Note that off-market real estate properties also include houses the owner is willing to sell but has yet to list on the market and homes that expired from the MLS and other public databases without selling. Now that you understand the meaning of off-market properties, read on to find out why some homeowners choose this option.

Why Do Some Sellers Not List Their Properties?

A crucial part of finding off-market homes for sale is understanding why some sellers go off-market. Learning the why enables you to create personalized marketing strategies that increase your chances of conversion. Here are common reasons some sellers opt to go off-market in Honolulu, Hawaii:

• Not Available: Open houses help generate home buyer interest. Given their significance, some homeowners in Kaneohe and other Hawaii areas will often choose only to list their properties if they can provide an open house; this might be due to ongoing renovation projects, owner-occupancy, or the homeowner's inability to handle the showing themselves.
• Pocket Listing: Other sellers in Kailua opt not to list publicly because they prefer their property to be sold as a pocket listing. This strategy is often used to maintain privacy or attract high-net-worth buyers; this strategy is popular among celebrities, public personalities, and luxury homeowners.
• Coming Soon: Some homeowners planning to sell may choose not to fully list their properties on the active market but instruct their real estate agents to market them as "coming soon." This strategy allows them to gauge market interest and potential offers. If the responses don't meet their expectations, they'll keep holding onto their property or seek potential buyers off the market.
• Foreclosure With Tenants: Homeowners undergoing foreclosure will often skip listing their properties on the market to prevent public buzz; this is particularly common among landlords whose foreclosure homes are still tenant-occupied, as it allows them to avoid alarming their tenants.

How To Find Off-Market Properties In Hawaii

Off-market investing required substantial time and effort a few years ago, as lead generation strategies were primarily manual. Fast forward, technology has brought forth multiple lead generation platforms that get the hard work out of the task by providing tools to automate finding and managing off-market houses for sale. We compiled the best of these platforms to help you learn how to find off-market properties in Hawaii using technology:

PropStream

PropStream is one of the most renowned software programs in the real estate space. It features tools that streamline every aspect of lead generation.

The software's property database is a game-changer for off-market investors in Hawaii. It features about 160 million property records aggregated from reliable sources like the Multiple Listing Service and county recordings. Besides being credible, these listings include multiple categories of off-market properties, such as recently expired MLS listings, bankruptcy filings, tax liens, and all three groups of foreclosure properties.

With access to these categories, investors in Hawaii can diversify their off-market property portfolios to achieve a steady flow of potential off-market deals, reduce investment risks, and increase returns.

PropStream makes things even better by providing tools that allow investors to make the most of its extensive database like:

• A Search Function: The PropStream search function allows users to easily search for off-market properties in Hawaii. They can even enter the address or details of a lead they've discovered to learn more about it.
• Stackable Filters: PropStream features over 100 filters that users can combine to yield highly targeted lead lists. For instance, rather than sifting through nationwide off-market records, an off-market investor in Maui can apply multiple location filters, like state, zip code, and neighborhood, to generate a list of off-market homes in this area. And suppose they're only interested in a specific off-market category and property type, such as foreclosed single-family homes. In that case, they can combine these status filters with the location filters to generate a list of highly relevant properties.
• Comprehensive Listing Data: Each listing you generate using PropStream comes with comprehensive owner and property data. The owner data includes phone numbers, email addresses, and related contacts. Property data includes address, sq. ft, number of bedrooms and bathrooms, mortgage history, and tax information. These details allow off-market investors to quickly assess the investment potential of each record they've generated and easily reach out to the property owners.
• List Automator: This feature automates lead generation by automatically adding properties that match a user's pre-set criteria to their CRM's saved lead lists whenever they become available in PropStream's database.

In addition to the above, PropStream offers deal analysis tools like comps, deal calculators, demographics, and predictive AI analytics. Users can also launch and manage entire lead marketing campaigns on the platform, as it not only features CRM but also supports SMS and email campaigns.

Read Also: PropStream Review: Pricing, Features, & Is It Worth It?

DealMachine

DealMachine is a real estate software designed to remove the guesswork from driving for dollars by providing investors with detailed property information.

Users can upload pictures and addresses of properties identified when driving for dollars on the app, which then searches various databases to generate owner and property details.

This empowers users to determine whether a property is worth following up on and allows them to tailor highly personalized marketing messages, increasing the likelihood of getting a response.

DealMachine also has a built-in direct mail tool. It features a variety of postcards that investors can generate or customize on the spot, allowing them to reach out to the property owner before leaving the scene; this greatly eases outreach and even cuts costs. What's more, users can even customize the postcards with a picture of that particular property to effectively capture the owner's attention. Additionally, DealMachine has an automated direct mail feature promoting seamless campaign follow-up.

The software has route-tracking functionality, enabling investors to cover their target areas effectively. DealMachine offers a drivers-for-hire feature if you want to cover multiple regions of Hawaii, including major areas like Oahu.

Even better, it tracks vital driving-for-dollar insights, such as mileage, allowing users to manage their lead generation budgets or track team performance effectively.

Read Also: DealMachine Review: Is It Worth It?

Foreclosure.com

If you intend to specialize in foreclosure as your off-market real estate niche in Aloha, check out Foreclosure.com.

Foreclosure.com is a real estate website specifically geared towards foreclosure properties in the country. The website contains a database of pre-foreclosure, foreclosed, and real estate-owned houses throughout the country. The database also features foreclosure-related listings such as bankruptcy and tax lien homes.

On average, the database often contains about 1 million listings in these categories, making it a superb source of off-market property leads. Plus, each listing featured on its website contains detailed owner and property data, allowing users to assess investment potential quickly.

Foreclosure.com offers valuable information you wouldn't find elsewhere, such as auction schedules and venues. Even if you don't intend to specialize in foreclosures, add it to your lead generation tool stack for when your pipeline is moving slowly.

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

Mashvisor

Looking for off-market homes that you can turn into short-term rentals in the Hawaii real estate market? Mashvisor will enable you to find them and analyze their investment potential.

Mashvisor has various real estate tools that can greatly simplify off-market lead generation.

These tools include a property marketplace featuring on and off-market houses. Off-market property categories include bank-owned homes, pre-foreclosures, short sales, divorce proceedings homes, and short-sale properties. This variety means that whether you intend to specialize in a particular category of off-market properties for sale or diversify your portfolio, you can find leads in Mashvisor's property marketplace.

Even more impressive is that once you find a promising lead, you can analyze its investment potential as either a traditional investment property or a short-term rental, such as Airbnb, using Mashvisor's built-in investment property calculator. And it's pretty straightforward, simply click on the listing you'd like to analyze, select the calculator, and follow the prompts. It'll generate an automated analysis featuring all the figures you need to determine or further analyze if that listing will make a good investment, such as:

• The current listing price
• The cash on cash return when used as a traditional rental or as an Airbnb
• The cap rate of the property as either a conventional or short-term rental
• Recurring monthly expenses
• Potential cash flow

Notably, if you have a specific property in mind whose investment potential you'd like to analyze, you can enter its address in Mashvisor's property calculator to generate a similar analysis. Also, remember that besides the above analysis, each listing you generate using Mashvisor already comes with comprehensive property and owner data.

Even more impressive is that Mashvisor features homeowner data as well. So, if you encounter an absentee owner property with immense investment potential but can't get hold of the owner, you can use Mashvisor to find their data. All you need to do is enter the exact street address, and Mashvisor will scan its database to generate the owner's full name, age, email, numbers, and address. This tool also comes in handy if you have a pre-existing list of properties whose owners you've been unable to locate. Other valuable Mashvisor features we recommend you check out to find off-market properties in Hawaii include:

• The heatmap
• Neighborhood analytics
• Property selling

BatchLeads

Launched in 2014, BatchLeads is one of the earliest lead generation software in the real estate scene. Despite the emergence of newer platforms, it remains one of the most popular, and it's not hard to see why. The software offers property records from about 3100 counties. Considering all 50 states have 3143 counties, BatchLeads' database features property listings even from the most remote parts of Hawaii. Even better, these aren't just on-market listings but also off-market records like expired and canceled MLS listings, distressed, tax liens, foreclosures, and absentee houses. That means it accommodates both on-market and off-market lead generation.

Additionally, Batchleads offers up to 300 filters and statuses; users can create custom filters! This means one thing: no more wasting time on unqualified leads, as you can generate property lists that fit your exact investment criteria. Plus, it offers lead scoring, allowing you to prioritize and channel your energy to homeowners with the highest likelihood of converting.

Also, note that BatchLeads supports list building. That allows users to generate, upload, store, update, and manage existing lead lists on the platform!And if you drive for dollars as a lead generation strategy, the Batchleads mobile app supports both physical and virtual driving for dollars.

But it doesn't stop at lead generation. Batchleads also features an integrated CRM, a built-in dialer, direct mail templates, and even SMS campaigns. Simply put, you can generate, market, and manage leads without leaving the platform!

Read Also: Batch Leads Review: Pricing, Features, & Is It Worth It?

*For in-depth training on real estate investing, Real Estate Skills offers extensive courses to get you ready to make your first investment! Attend our FREE training and gain insider knowledge, expert strategies, and essential skills to make the most of every real estate opportunity that comes your way!

Alternative Strategies To Find Off-Market Properties in Hawaii

In addition to using digital resources, check out how to find off-market properties Hawaii homeowners want to sell using organic methods:

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

Engaging With Real Estate Agents & Brokers

Real estate professionals are often deeply involved with the local market. For instance, an agent's or real estate broker's career typically involves assisting buyers and sellers in commercial, residential, and rental property transactions. These professionals also regularly research the market to help clients determine ideal property values and pricing strategies.

Moreover, they cultivate relationships with homeowners and industry professionals such as other agents, brokers, and lenders. Simply put, their careers put them at the center of the local real estate market, making them an excellent source of off-market property leads in Hawaii. Engaging with them can help you find and maintain a steady flow of off-market property opportunities.

Networking With Seasoned Investors

Like industry professionals, seasoned wholesalers, house flippers, commercial investors, and other investors in Hawaii also play a central role in the local real estate market. Be sure to engage them, as they can inform you of off-market opportunities and invite you to collaborate on projects.

Local Courthouse & Public Records

Check out local courthouses and public records regularly for off-market leads. They often feature off-market properties related to legal proceedings like divorce, foreclosure, probate, tax liens, bankruptcy, and estate evictions.

Hawaii MLS Listings Vs. Non-MLS Listings

While going off-market is undoubtedly one of the best moves you'll make for your real estate investing career in Hawaii, do not disregard MLS listings. Integrating them into your portfolio can help you maintain a pipeline with a steady flow of deals as it ensures you have opportunities to pursue whenever off-market leads are scarce.

MLS listings can also enhance your profitability in off-market investing by providing valuable insights into property and market trends across Hawaii. For example, when flipping an off-market property, you can refer to MLS listings in your target area to identify preferred interior and curb appeal trends that enable buyer-targeted renovations.

Similarly, as a wholesaler, MLS listings can help you run an accurate, comparable analysis, ensuring accurate pricing for wholesale properties in Hawaii.

Furthermore, the MLS attracts agents and a variety of licensed real estate professionals, creating extensive networking opportunities that can be invaluable for your off-market investing success.

Combining MLS and non-MLS listings in your off-market ventures in Hawaii maximizes your profitability and simplifies investing. If you haven't utilized the MLS before and don't know how, Real Estate Skills offers a complimentary course covering all you need to know to capitalize on this reliable database, even without a license.

Enroll in our course today to learn how to exhaust MLS possibilities.

Read Also: Hawaii Real Estate Classes: Wholesaling, Flipping & Licensing

Pros Of Off-Market Properties HA

Learning how to find off-market properties in Hawaii accrues you the following benefits:

• Reduced Competition: With most real estate investors investing on-market, going off-market in Hawaii drastically reduces your competition for profitable investment opportunities.
• Lower Sale Price: Besides pocket-listing sellers and those looking to capitalize on a seller's market, most homeowners selling off-market are usually looking to sell quickly due to unique circumstances and are often willing to accept a lower sale price to speed up the sale. Additionally, off-market homes typically have limited exposure, so sellers may price them at discounted rates to attract more interest.
• Smoother Negotiations: With reduced competition, off-market investors have more room to negotiate comfortably.
• Flexible Transaction Timelines: Off-market properties aren't subject to listing expiry dates, resulting in flexible transaction timelines.
• Unique Investment Opportunities: Off-market houses include unique listing categories such as celebrity homes and luxury properties, allowing investors to diversify their portfolios with unique investment opportunities.

Cons Of Off-Market Properties HI

Going off-market in Hawaii also comes with some disadvantages:

• Limited Availability: Off-market houses make up only a small percentage of properties for sale in Hawaii
• Difficulty Finding Properties: Off-marker homes are limited and often advertised via private channels, making them quite tricky to find. However, you can overcome this by maximizing the tips we offered earlier.
• Challenges with Inexperienced Sellers: Some off-market sellers, particularly those selling without an agent due to financial circumstances such as foreclosure, may need more property selling experience, resulting in complicated transactions.

Final Thoughts on Finding Off-Market Properties In Hawaii

Off-market properties are a reliable way to boost real estate profitability. They allow you to diversify your portfolio, reducing the risks associated with solely investing in on-market properties. Our detailed guide above provides the fundamental insights you need to kick-start your off-market journey.

Now that you've learned how to find off-market properties in Hawaii, 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 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.