In the competitive world of real estate investing, finding the right property can be a challenge. While many investors rely on the Multiple Listing Service (MLS), some of the best deals are often found elsewhere. Off-market properties can offer better cash flow and bigger margins, but how do you find them? Janelle Carlson, a seasoned real estate investor, shares her insights and strategies on the Real Estate Rookie podcast.
Janelle’s journey began like many other investors—she started by looking at properties on the MLS. However, around 2026, she noticed a shift in the market. With record-low mortgage rates and properties often selling for above asking price, the deals started drying up. This led her to explore off-market opportunities, and she hasn’t looked back since. Today, she closes over 30 off-market deals per year across California, Indiana, and Ohio.
Why Off-Market Deals?
Off-market deals refer to properties that are not listed on public platforms like Zillow or the MLS. These properties can be found through various channels, including direct mail, networking with real estate agents, and working with wholesalers. Janelle’s success with off-market deals stems from her ability to find properties that others might overlook.
One of Janelle’s most notable off-market deals involved a property with significant foundation damage. She bought it for $110,000, invested $250,000 in rehab, and saw it appraise for $550,000. This deal highlights the potential of off-market properties, especially those that scare away other investors due to perceived risks.
The Benefits of Off-Market Investing
Off-market investing offers several advantages. Firstly, it provides access to properties that are not subject to the intense competition seen on the MLS. This can lead to better negotiation opportunities and potentially higher returns. Secondly, off-market deals often involve properties that need significant work, which can be a goldmine for investors willing to take on the challenge.
Janelle emphasizes the importance of understanding the condition of the property and negotiating accordingly. She looks for four key pillars when evaluating a potential deal: motivation, condition, price, and timeline. By focusing on these aspects, she can make informed decisions and secure the best possible deals.
Navigating the Challenges
While off-market investing can be lucrative, it also comes with its own set of challenges. One of the biggest hurdles is finding reliable leads. Janelle uses a combination of direct mail, networking, and working with wholesalers to build her pipeline. She also leverages technology, such as CRM software, to manage her leads and track her marketing efforts.
Another challenge is managing a remote team. Janelle operates in multiple states, which requires effective communication and coordination. She relies on her real estate agent, contractor, and property walkers to gather the necessary information and make informed decisions. This approach allows her to invest confidently, even when she can’t physically visit the properties.
Getting Started with Off-Market Deals
For rookies looking to get into off-market investing, Janelle offers some practical advice. She suggests starting with low-cost strategies, such as networking with real estate agents and looking for for sale by owner (FSBO) listings on Zillow. These methods can help beginners build their pipeline without a significant upfront investment.
Janelle also emphasizes the importance of consistency and persistence. Finding off-market deals requires a lot of effort and follow-up. She recommends dedicating at least 10 to 15 hours a week to this endeavor. With the right approach and a willingness to learn, rookies can start securing off-market deals and building their real estate portfolio.
Janelle’s journey is a testament to the power of off-market real estate deals. By thinking outside the box and leveraging her expertise, she has built a successful investing career. For those willing to put in the work, off-market investing can be a game-changer.
