The Off-Market Advantage: How to Find Multifamily Deals Before They Hit the Market

During my 10 years as an apartment building broker, my primary focus was on tracking down and directly contacting property owners. When I transitioned to investing in multifamily properties in 2021, I applied those same direct outreach skills to source deals off-market.

Why is off-market sourcing worth the effort? Three reasons: First, you get increased deal flow by accessing properties that aren't publicly marketed. Second, you face less competition since most investors never contact owners directly. Third, you secure better purchase prices through simple math: If a broker tells a seller they can get $5M for their property (minus a 4% commission), the seller nets $4.8M. As an off-market buyer, you could offer $4.8M directly, giving the seller identical proceeds while saving yourself $200,000.

Some property owners prefer off-market sales for the privacy and simplicity they provide—no public marketing campaigns, no parade of investors touring their property, and no broker fees to pay. Here's the system I use to connect directly with sellers.

Step 1: Build Your Database

Before making your first call, you need a system to track everything. Successful direct outreach requires multiple touchpoints with each owner, and without proper organization, you'll lose track of who you've called, when you called them, and what was discussed. I use Airtable for this, but Excel or Google Sheets work just as well.

Your database should have columns to track:

• Owner contact details (phone, email)

• Property specifics (address, units, year built)

• Outreach history (calls made, voicemails left, texts sent)

• Response tracking and conversation notes

Step 2: Acquire Property Owner Data

For ownership data, I rely primarily on CoStar, which provides property and owner information. If you don't have access to CoStar, Reonomy, and Yardi Matrix are solid alternatives. Another option is to hire a list broker through Upwork.com, who can build a custom contact list based on your specific criteria.

Example Criteria to filter your list:

• Multifamily Buildings

• 50-150 units

• Located in the 7-county Metropolitan Area

• Year of Construction: 1960 or newer

List Maintenance: As you contact owners, keep track of any disconnected or wrong phone numbers. Use beenverified.com or your preferred skip-tracing service to look up better phone numbers to try.

Step 3: Dial Baby Dial

Cold calling is your most powerful tool—it's direct, personal, and allows for real-time conversation. Be straightforward and get to the point quickly; property owners appreciate honesty over sales pitches. To add immediate value and build credibility, come prepared with recent sales comparables from their neighborhood that you can share during the call.

The system:

• 2-3 call attempts per owner, spaced 3-5 days apart

• Leave 1 professional voicemail on the first unanswered call

• Update your database after every attempt

Script framework: "Hi Roger, I'm Ben with Ridgeview Property Group. I'm interested in acquiring your property at 123 1st Street. Would you consider selling?"

Step 4: Text Message Follow-Up

Phone conversations are the most effective way to connect with property owners; however, text messages excel as a follow-up tool when calls go unanswered. With a 98% open rate, texts ensure your message gets seen even when owners don't answer their phones.

The approach:

• Send to owners who didn't answer calls

• One text per owner maximum

• Keep it professional but conversational

Sample text: "Hi Roger, this is Ben from Ridgeview Property Group. I left you a voicemail about 123 1st Street. If you're ever interested in exploring a sale, I'd love to have a quick conversation.”

Step 5: Send a Letter

When phone calls and texts don't generate a response, direct mail becomes your next strategic move. The key is personalization—never send generic mail. At minimum, include the specific property address and building name. This shows you are genuinely interested in their particular property, not just mass-mailing every owner in the area.

Bonus Tip: To almost guarantee that your letter will be read, consider sending it via FedEx.

Final Thoughts

One reminder: don’t overlook traditional channels when sourcing deals. Brokers remain the most reliable source of multifamily deal flow. Off-market efforts should be seen as a complement, not a replacement. The most effective strategy is to pursue listed deals while simultaneously building relationships with property owners behind the scenes.

Sourcing off-market multifamily deals can give you a competitive edge. Start building your owner database now, and in six months, you could be reviewing opportunities before they hit the market. “Going the extra mile is never crowded." — Wayne Dyer

-Ben Michel

Ben Michel is the founder of Ridgeview Property Group, an investment firm specializing in multifamily real estate. Register Here to be notified of available investment opportunities.