In Part 1 of this series, we covered how to identify off-market opportunities using OTA ratings and value gaps. In Part 2, we’ll take a deeper dive into more tactical strategies. First, we’ll discuss how to identify off-market hotels by pinpointing the right properties, then show you how to uncover ownership information. 

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Identifying Distressed Properties

One approach to finding off-market hotels is identifying distressed or underperforming properties. Owners who may have inherited the property, are dealing with financial strain, or simply lack the interest to manage it, could be open to selling—even if the property hasn’t been listed publicly.

• On foot: Walk through neighborhoods to identify properties showing signs of neglect, such as cracked windows, overgrown lawns, or other visual cues that suggest the owner may be struggling to keep up with maintenance.
• Online: Use Google Street View to virtually scout potential areas for closed or poorly maintained hotels. 

João's Hack: Partner with locals, such as postal workers or delivery drivers, who are familiar with the area. They can spot neglected properties based on signs like overflowing mailboxes.

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Uncovering Ownership

Once you’ve identified distressed properties, the next step is to uncover who owns them. Knowing the ownership details will allow you to approach the potential seller with a targeted strategy.

• Government databases: By creatively utilizing government databases, you can uncover a property’s owner. In Portugal, for example, you can use the SCE (Energy Efficiency Certificate) database to find properties that have undergone energy assessments. With the property’s code you can access it’s CRP (Cadastro Predial) report and identify the owner.
• Ask around: Once you have the owner’s name from the CRP report, you can gather more information by asking locals. Visit nearby cafes or speak to neighbors, who may have contact details or be familiar with the property owner.

João's Hack: If the property you’re interested in isn’t listed on the SCE database or another government resource, look for two nearby properties with sequential codes, such as 10 and 12. The property in between is likely registered as code 11, which will allow you to access its ownership history and track down the owner.

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Reaching Out

Once you’ve identified a property and its owner, it’s time to reach out. Effective outreach is crucial in securing off-market deals, and there are several ways to do it efficiently.

• Seller’s motivation: Before reaching out, it’s important to research the seller’s situation. Understanding why they want to sell—whether due to personal reasons, financial pressures, or managing inherited property—can help you tailor your approach. By offering a flexible timeline or a quick cash sale, you can address their needs and increase your chances of securing a better deal.
• Direct outreach: Whether by phone, email, or social media, your message should always be personalized. Demonstrate that you understand the seller’s needs and offer a solution that fits their situation. This approach builds trust and increases your chances of making a deal.

João's Hack: Leverage LinkedIn to connect directly with property owners. Personalized LinkedIn InMails tend to get higher response rates than emails, helping you stand out and increase your chances of a reply.

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Networking

While identifying distressed properties is important, tapping into pre-market deals offers another valuable way to find opportunities before they officially hit the market.

• Local agencies: Small agencies often list properties privately to sell directly within their network and avoid sharing commissions. If they don’t succeed after a couple of months, the property is then listed on MLS (multiple listing service) platforms like Idealista or Casa Sapo. By targeting these agencies early, you can gain a first-mover advantage before competition increases. 
• Build a network: Networking with these local agencies is a great way to gain access to properties before they are publicly listed. Establish a network of 20-30 realtors in your area and remind them that you’re actively looking for properties. This will keep you top of mind when new opportunities arise.

João's Hack: Set up an automated email to send regular check-ins to your network, making sure your search stays on their radar. This increases your chances of being the first to know when a property is available.

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Scaling Your Search

Now that you know how to identify properties and their owners, scaling the search process is crucial for finding multiple off-market deals. Here are some tips on how to streamline and scale your efforts.

• Outsource: Hire a virtual assistant to handle repetitive tasks like looking up ownership records or sending initial outreach emails. This will free up your time to focus on high-level strategy and negotiations.
• Buythathotel.com: Use our interactive map to build your investment thesis, run due diligence, and discover off-market deals. We provide curated data on new hotel listings, distressed properties, and other valuable insights to help you save time and scale your search.

João's Hack: Use a CRM to track communications, follow-ups, and property statuses. This makes it easier to manage a large number of leads without missing any opportunities.

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We recorded a podcast episode about due diligence and off-market opportunities in Portugal with João Grilo of Five Ducks.

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Conclusion

Finding off-market hotels takes research, persistence, and networking. By targeting distressed properties, leveraging public data, and executing a solid outreach strategy, you can increase your chances of securing a deal before it hits the market.

Remember, off-market deals are a numbers game. The more owners you contact, the higher your chances of finding a motivated seller. Not every outreach will lead to a deal, but persistence is key—track your efforts, follow up regularly, and stay open to creative solutions.

With Buythathotel.com, you can easily compare properties by accessing a curated list of small hotel listings from dozens of real estate websites and performing initial due diligence in a couple of minutes using our interactive map (currently available in Portugal). With our market intelligence tool, you can also discover off-market deals by accessing data on new hotel developments and distressed hotels. Drop us a message for more information.