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

Iowa has long been considered a flyover state, but this narrative is changing. As an educational hub with a growing tech sector, The Hawkeye State has, in recent years, steadily drawn a diverse mix of residents, fueling consistent real estate demand. According to Statista, in 2022, real estate was among the top sectors that contributed the most real value to Iowa's gross domestic product, adding approximately $47.07 billion.

Consequently, whether you're in Des Moines or Davenport, Iowa's real estate market is ripe with investment opportunities. Off-market properties, in particular, are an excellent strategy to bolster profitability and streamline investing. These properties often come with less competition, the potential for negotiation, and the chance to find unique or undervalued properties, all of which can lead to higher returns on investment.

As a result, we’ve developed this guide to teach you how to find off-market properties in Iowa, starting with the following:

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

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

Off-market properties are exactly what they sound like; they are properties sold without being publicly advertised. Also known as private or quiet listings, these properties are available for sale but not publicly listed. For instance, a homeowner might tell their real estate agent they're willing to sell, but they don't want a 'For Sale' sign in their yard or property listed on public websites. However, to comply with the National Association of Realtors' Clear Cooperation Policy, listing agents may briefly upload them to the MLS and pull them down for exclusive marketing.

Note that off-market properties in Iowa also include homes listed on the Multiple Listing Service or other public databases but failed to sell, causing the listing to expire.

Additionally, the term off-market may be used when referring to a property a homeowner is willing to sell but has yet to formally list; this means that if you, as an investor, approach them, they may be open to selling.

Why Do Some Sellers Not List Their Properties?

Why do some sellers in Iowa choose this approach? Below are common reasons:

• Not Available: While sellers can enlist an agent to handle open houses, some homeowners in Iowa prefer to manage this task themselves. They have better knowledge of their home's features and can show them off to ensure they get the best value. Such owners often choose not to list their properties publicly if they cannot oversee the showing. Others opt to go off-market because they're still occupying the property, which makes it unavailable for showings.
• Seller's Market: Some sellers in Iowa deliberately choose to stay off-market during a seller's market. This strategy enables them to attract multiple offers, often resulting in bidding wars that further increase the sale price. Additionally, home buyers are less likely to request repairs due to limited inventory, which streamlines their selling process.
• Pocket Listing: Other sellers, especially celebrities, politicians, public figures, and luxury homeowners in Iowa, opt not to list on the market to maintain privacy or attract an exclusive selection of potential buyers. For example, most luxury property owners instruct their agents to market the property to professionals specializing in high-end real estate properties. This approach helps filter out less qualified home buyers and ensures they receive the best value for their home. These types of sales are known as pocket listings because they're more exclusive than regular off-market sales.
• Coming Soon: Off-market properties refer to homes an owner is willing to sell but has not listed. Rather than listing their houses formally, some homeowners in this category often instruct their agents to list their houses as "coming soon" on the market to gauge buyer interest.
• Foreclosure With Tenants: sellers with tenant-occupied homes, particularly those undergoing foreclosure, will often market their properties off-market in Iowa to avoid alarming tenants.

How To Find Off-Market Properties In Iowa

Check out how to find off-market properties in Iowa using real estate software. Discussed below are some of the best of these software options for off-market lead generation:

• PropStream
• DealMachine
• Foreclosure.com
• Mashvisor
• BatchLeads

PropStream

Data is the secret to finding off-market properties for sale, and PropStream provides many of them in different forms. It aggregates property data from various sources and has a 160 million nationwide listings database, including multiple off-market categories.

Each listing contains ownership information and important property details like sqft and mortgage history. With such data, an off-market investor can efficiently evaluate whether a property fits their portfolio and makes a good investment.

Even more impressive is that PropStream now offers a predictive AI tool. It enhances property valuation by assessing a listing's investment potential and assigning it a score; this allows investors to prioritize marketing efforts on the most potentially profitable properties.

PropStream also recently added demographic insights to each listing in its database. These insights empower investors to craft effective marketing and investment strategies. Navigating through PropStream's vast database is seamless, thanks to its advanced search function and wide range of filters. The software even features an automated list that adds properties that fit a user's pre-set criteria to their saved lead lists.

PropStream offers a wealth of data and the tools you need to maximize that data to uncover profitable off-market opportunities in Iowa.

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

DealMachine

Would you prefer to work with an off-market-focused platform? DealMachine is perfect; it was initially conceived to help real estate investors find and acquire off-market real estate deals.

It has a mobile app specifically designed to simplify driving for dollars. How? Driving for dollars traditionally involves driving around neighborhoods, identifying properties with off-market investing potential, and manually listing them. Well, DealMachine greatly simplifies this. The app locks onto your location and displays potential investment properties around. That means no more randomly driving around your target market and hoping to the gods you find homes for sale.

Furthermore, each listing in the app includes detailed information such as owner details, square footage, and the property's current listing status, such as whether it is vacant, distressed, or foreclosed. These details allow you to focus on properties that fit your investment criteria rather than blindly pursuing each lead.

DealMachine also offers skip tracing. So, if the owner information you find on the app hits a dead end, you can use skip tracing to find updated contact information.

If you encounter a promising property while driving, you can capture its picture and upload its address onto the app. Within seconds, you'll get the owner's contact information and mailing addresses for other properties they own.

Even more impressive is DealMachine's direct mail feature. It lets you initiate mail campaigns on the spot. Here's how to do it:

• Go to mail: Navigate the mail section in the app.
• Create a new mail sequence: Click on mail sequences> new mail sequences and name your sequence.
• Choose a postcard design: You can select a postcard from the various templates offered or customize your own using the property's picture. You can also choose the number of postcards and schedule their delivery.
• Start the Mail Campaign: Click "Create" or "Start Mail. You'll receive a notification saying, "Mail pieces are in the mail queue," indicating they'll be printed in an hour.

Once you complete the above steps, DealMachine's team will mail the postcard to the designated address within 7-10 days. To help keep you at ease, DealMachine offers a mail tracking feature to monitor delivery status. Notably, the company partners with Ballpoint Marketing, which means you can even have your mail pieces handwritten for enhanced marketing personalization.

Also, note that DealMachine isn't just a driving-for-dollars app. It offers numerous features that can simplify your off-market lead generation efforts in Iowa, including a property database, list builder, list stacking, and Zapier-based third-party integrations.

Read Also: DealMachine Review: Is It Worth It?

Foreclosure.com

Foreclosure properties make some of the best off-market investments as they're typically sold below market value. If you'd like to specialize in this category for your off-market investing, you need Foreclosure.com in your tech stack. It's a website featuring one of the largest databases of foreclosure properties. Foreclosure.com usually features over 1 million foreclosure plus foreclosure-related property listings at any time. These include

• Pre-foreclosure properties
• Repossessed homes
• Real estate-owned
• Government foreclosures
• Sheriff sale listings
• Short sale listings
• Bankruptcy listings
• As-is, fixer-upper, and rent-to-own properties
• For sale by owner

With a wide array of off-market property categories and a database of over 1 million listings, you can find leads whether you intend to diversify or create a specialized portfolio. Finding them should be pretty straightforward, too, as Foreclosure.com offers a search function and filtering capabilities. The platform even has map-based search capabilities to view how properties are spread in your target investment area. This is pretty handy if you intend to drive for dollars.

Furthermore, listings feature advanced details, including mortgage details, payment history, and tax information, for quick and effective investment potential evaluation. Plus, you can set up email alerts to stay on top of properties fitting your investment criteria and reach leads when they're hot.

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

Mashvisor

Mashvisor is a real estate website featuring a property marketplace ideal for off-market lead generation. The marketplace offers an impressive array of off-market property categories such as short sale properties, bankruptcy, probate, FSBO, and properties in all stages of foreclosure.

Mashvisor stands out by allowing users to evaluate the investment potential of listings for both traditional and short-term rentals. For instance, if you identify a promising off-market listing within its marketplace, you can analyze its cash-on-cash return as a conventional investment property or an Airbnb. Besides properties, Mashvisor's marketplace also provides access to homeowner data. However, the most impressive benefit of this marketplace is that you can sell your off-market investment properties in Iowa directly on the platform.

BatchLeads

BatchLeads is another all-in-one real estate software that can significantly ease off-market lead generation. The software has a database of countrywide property listings, including remote locations in Iowa. It pulls this data from multiple reliable sources, including the USPS, and the database is regularly updated to ensure accuracy. It includes various off-market listing categories in its database, including distressed homes, cash buyers, vacant properties, pre-foreclosures, and expired MLS listings.

Batchleads offers advanced filtering analytics, allowing you to focus your search only on leads that fit your target category. Each listing you generate includes ownership details and physical property data, enabling you to easily assess the quality of each lead and reach out to the owner. If a listing has limited or outdated ownership details, the BatchLeads skip tracing function allows you to find updated data in just a few clicks.

The platform also offers property valuation tools like comparable sales data and market trends insights, empowering users to determine the after-repair value of a listing quickly. If they deem it ideal, the software offers SMS marketing and direct mail, allowing them to launch a marketing campaign instantly.

Note: It also has a driving-for-dollar app, list stacking, and team collaboration tools.

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 Iowa

The real estate software options will greatly ease off-market lead generation, but that doesn't mean you should ditch traditional tactics altogether. Here are three alternative traditional marketing strategies you should make sure you use to maximize your off-market property investment success in Iowa:

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

Engaging With Real Estate Agents & Brokers

Real estate agents and brokers are always well-informed of local market dynamics. For example, they're often the first to learn of pocket listings, which are typically marketed exclusively to them.

Therefore, partnering with a local agent or broker in your desired Iowa neighborhood can help you find off-market properties with little to no competition, thanks to early referrals. Engaging their expertise can significantly enhance your investment opportunities.

Networking With Seasoned Investors

Established residential and commercial investors often boast extensive networks they tap into whenever they need leads. Cultivating good relationships with such investors allows access to their networks, enabling you to develop connections for sourcing off-market properties in Iowa. They may also offer you referrals. Moreover, engaging them opens the door to collaboration opportunities. For instance, if you identify a potentially profitable off-market flip in Iowa but lack the necessary budget, you can invite a seasoned house flipper to split the costs of the renovations.

Local Courthouse & Public Records

Local courthouses and public records often feature properties caught up in legal proceedings. For instance, whenever properties are auctioned, they're often filed into the county records, which you can find in a local courthouse in your target area in Iowa. Similarly, divorce, probate, and tax liens properties are often added to these records. So, regularly check them out to find motivated off-market leads.

Iowa MLS Listings Vs. Non-MLS Listings

While we strongly recommend using non-MLS listings for off-market lead generation, integrating MLS listings into your strategy can also be beneficial. They serve as a reliable backup when off-market real estate deals are scarce and, as such, can greatly complement off-market investing.

You can also use MLS listings to inform your non-MLS listing pricing and marketing strategies. For example, if you come across a distressed off-market property in Iowa and need clarification on pricing, you can use comparable MLS listings to determine a suitable sale price. Additionally, MLS listings provide an opportunity to network with agents, brokers, and other licensed real estate professionals countrywide. These networks could prove pivotal in your off-market lead-generation efforts in Iowa.

Real Estate Skills offers a resourceful course on MLS listings designed to help off-market investors maximize their potential. Enroll today to unlock the secrets of MLS listing investing, including how to access this nationwide database without a license in Iowa.

Pros Of Off-Market Properties IA

Here's why you should learn how to find off-market properties in Iowa:

• Reduced Competition: On average, on-market properties can attract up to ten offers in a competitive market; this makes them difficult to secure and drives the sale price up. Investing in off-market houses for sale counters this trend. These properties are generally advertised to fewer buyers, significantly easing the competition you'd have to contend with.
• Lower Sale Price: While off-market properties may attract multiple buyers, they're typically fewer. With fewer offers, sale prices tend to be more reasonable.
• Smoother Negotiations: Off-market real estate investing in Iowa allows smooth negotiations. With fewer buyers aware of the property, there's less pressure and urgency, allowing for more relaxed negotiations. Moreover, negotiating directly with the seller further eases the process.
• Flexible Transaction Timelines: Without the time constraints of public listings, off-market sellers often do not rush to sell and can tailor real estate transaction terms to fit the buyer's needs.
• Unique Investment Opportunities: Not only are off-market properties exclusive, but some are also uniquely remarkable, often including pocket listings from celebrities and luxury property owners who typically possess extraordinary dwellings.

Cons Of Off-Market Properties IA

Off-market property investing does have some downsides, including:

• Limited Availability: Off-market houses are generally fewer than active listings, as most homeowners in Iowa tend to list on the market.
• Difficulty Finding Properties: Not only are off-market properties fewer, but they are often never advertised publicly, making them harder to find.
• Challenges With Inexperienced Sellers: With off-market listings, you'll often negotiate directly with the seller. While this is advantageous, it can prove incredibly stressful if you encounter an inexperienced homeowner.

Final Thoughts On Finding Off-Market Properties In Iowa

Off-market property investing complements your on-market investing efforts, ensuring a steady flow of leads. It's also generally less competitive, leading to a smoother investment process, particularly when specializing in it. Off-market homes are often sold below market value, allowing for profitable real estate deals. However, it does have its challenges. We offer coaching programs that address these challenges and provide solutions.

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