BiggerPockets Real Estate Podcast

The Massive Opportunity of Overlooked On-Market Deals

Nov 13, 2024

Dan Nelson, a seasoned real estate agent and investor from Chicago, shares insights on uncovering profitable on-market deals. He argues that MLS properties often hold hidden gems, contrary to common belief. Forget about day-one cash flow; he advises looking for properties that you can enhance over time. Dan reveals strategies for spotting undervalued listings and stresses the importance of long-term cash flow potential. His two decades of experience proves that beginners can thrive in the market by adopting his simple yet effective approach.

42:03

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Episode guests

Dan Nelson

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Quick takeaways

Investors often overlook on-market MLS properties that can offer more favorable conditions and hidden opportunities compared to off-market deals.

Focusing on on-market listings allows beginners to learn property management basics without the complexities of off-market negotiations, building confidence in future investments.

Deep dives

The Underrated Value of MLS Listings

Many investors overlook properties listed on the Multiple Listing Service (MLS) in favor of off-market deals, but there are numerous advantages to buying on-market properties. On-market listings are generally in better condition, as sellers often address issues before listing. In contrast, off-market properties frequently come with hidden problems that may not be disclosed until the buyer is deep into the process. By focusing on MLS listings, investors can access a broader range of potential deals and avoid the complications that often accompany off-market transactions.

Intro

2min

Navigating Real Estate Deal Dynamics

7min

Maximizing Income Through Passive Investments and Management Tools

2min

Understanding Under-Market Rents in Chicago's Rental Market

2min

Navigating the Rental Market Landscape

14min

Navigating Off-Market Real Estate Deals

5min

Navigating Rental Property Investments

9min

Today, we’re talking about the easiest way to find profitable rental properties in 2024 (and 2025!). It’s not through cold calling homeowners, sending mailers, networking with wholesalers, or doing any other “off-market” strategy. It’s so easy that even real estate investing beginners will have no trouble finding deals. What are we talking about? On-market, MLS (multiple listing service) properties for sale.

You might think, “But everything on the market is overpriced; there are NO good deals left!” That’s where you’re wrong, and today’s guest proves it. Dan Nelson has been buying on-market investment properties for two decades now, and he’s built an entire portfolio doing so (even in recent years). Dan knows there’s a time and place for off-market deals, but he has found so many hidden opportunities on the market that he keeps returning to buy.

During this episode, Dan shows YOU precisely what to look for when browsing listing websites for rental properties or potential house flips. He shares the hidden opportunities most investors miss and why you should NOT be focused on properties that make money from day one. Instead, he walks through his simple strategy to create serious cash flow only a couple of years after purchasing properties most investors overlook.

In This Episode We Cover:

Why (for the most part) off-market deals are NOT great for beginners

The reason Dan doesn’t care about “day one cash flow” when buying rentals

Signs that you should offer a lower price on a potential rental property

Why you should always look for on-market deals BEFORE deciding on a market

When it’s time to start buying off-market deals (Beginners should avoid this)

And So Much More!

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