Here’s something most investors don’t know: off-market properties consistently appraise for more than what buyers pay for them.
How do I know? As a mortgage broker, I see the appraisals. Deal after deal comes through where investors bought properties through professional platforms, and the bank’s appraiser values them higher than the purchase price. That’s instant equity from day one.
Let me explain why off-market deals matter and how they work. For the full cross-border roadmap, visit our US cross-border investing hub.
What Makes Off-Market Properties Special
Off-market properties aren’t listed on MLS. The general public never sees them. They move through private networks between wholesalers, institutions, builders, and proven buyers.
Think about it like this: if you’re selling a property and you can find a qualified buyer quickly without listing it publicly, why wouldn’t you? No showings, less hassle, faster close. Everyone wins.
But here’s the thing – most individual investors can’t access these deals. They don’t have the relationships or track record.
Five Ways Pros Find Off-Market Deals
Wholesaler Networks
Wholesalers tie up properties under contract and market them to private buyers. These deals move fast – sometimes you have 24 hours to decide. They include interesting opportunities like leaseback deals where the seller stays on as a tenant, or properties with existing financing you can take over.
Institutional Relationships
Large property owners sell to each other before going public. If you managed billions in real estate like some platform founders have, you know who’s buying and selling. These relationships take years to build.
Broker Pre-Market Access
Top brokers give their best clients first look at properties before they hit MLS. It’s not officially off-market, but you’re seeing it before everyone else crowds in.
Builder Direct
Builders offer new or renovated properties to known buyers before listing them. They’d rather sell three properties to one reliable buyer than deal with three different first-timers.
Technology Screening
Even on-market properties get screened differently by pros. They use algorithms and institutional tools to find the few good deals among thousands of listings.
If off-market deals consistently appraise higher than the purchase price, the financing piece needs to match that built-in equity — book a free strategy call with LendCity to structure your US loan the right way.
Why DIY Investors Struggle
I’ve seen plenty of investors try to go it alone in US markets. Here’s what usually goes wrong:
They don’t understand property tax reassessments. In many counties, when a property sells, it gets reassessed at the new purchase price. Your taxes might jump 50% or more. Miss that in your calculations and your cash flow disappears.
They can’t access the same deals. Wholesalers want buyers who can close in days, not weeks. Institutions sell to other institutions. Individual investors get what’s left over.
They use consumer-grade tools. Institutional analysis platforms cost thousands per year. Individual investors use Zillow and hope for the best.
They manage everything themselves. Deal sourcing, entity setup, tax planning, property management oversight, refinancing strategy – that’s a full-time job.
The Appraisal Evidence
Let me share what I see as a mortgage broker financing these deals.
When an investor buys a property, we order an appraisal. It’s an independent third party – they don’t care what the purchase price is. They just tell us what the property is worth based on comparable sales.
Properties sourced through professional platforms consistently appraise higher than the purchase price. Not by a little – we’re talking real equity right away.
This tells me two things. First, the platform negotiated well. Second, they were conservative in their pricing, giving clients a margin of safety.
That’s the difference between off-market access and bidding wars on MLS listings.
Missing a 50% property tax reassessment can wipe out your cash flow overnight — book a free strategy call with us so we can help you run the real numbers before you close.
What Real Due Diligence Looks Like
Professional platforms don’t just find properties. They verify everything before you see the deal.
Initial screening checks property condition, reviews market data, confirms the price makes sense, and runs preliminary numbers. If it doesn’t pass this stage, you never hear about it.
Third-party verification uses data services to confirm rents, cross-references property values, estimates insurance through master policies, and projects taxes including likely reassessments.
Professional inspection reports in the US are incredibly detailed – way more thorough than what you typically see in Canada. Then a local contractor creates a scope of work with specific costs for every repair.
Property managers weigh in on rental rates, renovation priorities, timeline to get it rented, and neighborhood dynamics.
Only after all this do you get presented with the opportunity. And you still have time to review everything and decide if you want to proceed.
The Entity Structure Question
Here’s something DIY investors often mess up: how you hold the property matters.
Canadians buying US property face tax implications on both sides of the border. Set things up wrong and you might pay more tax than necessary. Or create estate planning headaches. Or miss liability protection.
Technology That Makes Sense
Institutional investors use sophisticated tools that individual investors can’t justify buying.
Tax assessment prediction tools that understand county-level practices and reassessment cycles. Market rent databases with real transaction data, not just listing prices. Property valuation models that factor in dozens of variables. Market trend analysis that processes data from multiple sources.
These tools cost serious money annually. But when you’re part of a platform serving multiple investors, the cost gets spread out. You get institutional-grade analysis without institutional-level expenses.
Beyond The Purchase
Buying the property is just the beginning. What happens after?
Professional platforms provide ongoing asset management. They supervise your property manager, monitor performance, identify value-add opportunities, and manage renovation projects.
Portfolio management looks at your properties as a whole. When should you refinance and pull equity out? How do you optimize across multiple properties? When does it make sense to sell one and buy two others? Having access to flip mortgage financing can help you execute value-add strategies on these properties.
Property managers handle day-to-day operations, but they don’t think about these strategic questions. You need someone looking at the bigger picture.
How To Get Started
If you’re PadSplit Investment: Room Rental for Cash Flow, start by understanding your goals. How much equity can you deploy? What returns do you need? Are you focused on cash flow or Appreciation or both?
Then talk to professionals who specialize in this. Not general real estate agents – people who specifically help Canadians invest in US real estate.
Look for platforms that provide end-to-end service: deal sourcing, acquisition support, property management coordination, and ongoing portfolio oversight. The integrated approach matters more than you might think.
And work with a cross-border mortgage financing specialist. US investment property loans for Canadians have specific requirements. You want someone who does these deals regularly, not someone figuring it out for the first time with your money.
The Bottom Line
Off-market properties give you an advantage. Real data proves it – they appraise higher than purchase prices because you’re not competing with dozens of other buyers.
But accessing these deals requires relationships and track records that take years to build. That’s why platforms exist – to give individual investors access to institutional-level deal flow and analysis.
Can you invest in US properties on your own? Sure. But you’ll compete with everyone else on MLS, miss tax implications you didn’t know about, and handle everything yourself.
The investors I see succeeding in US markets work with professionals who have the networks, tools, and experience to find better deals and avoid expensive mistakes.
That’s not marketing talk. It’s what the appraisals show, deal after deal.
Frequently Asked Questions
What does off-market property mean?
Why do off-market properties appraise higher than the purchase price?
Can individual investors access off-market US properties?
What's the biggest mistake Canadians make investing in US real estate?
Do I need a special mortgage for US investment properties?
How should Canadians structure ownership of US rental properties?
What's included in proper due diligence for US rental properties?
Is it better to buy US rental properties on MLS or off-market?
Disclaimer: LendCity Mortgages is a licensed mortgage brokerage, and our team includes experienced real estate investors. While we are qualified to provide mortgage-related guidance, the broader financial, tax, and legal information in this article is provided for educational purposes only and does not constitute financial planning, tax, or legal advice. For matters outside mortgage financing, we recommend consulting a Chartered Professional Accountant (CPA), licensed financial planner, or qualified legal advisor.
Written by
LendCity
Published
December 22, 2025
Reading Time
7 min read
Appraisal
A professional assessment of a property's market value, required by lenders to ensure the property is worth the loan amount.
Appreciation
The increase in a property's value over time, which builds equity and wealth for the owner through market growth or forced improvements.
Cash Flow
The money left over after collecting rent and paying all expenses including mortgage, taxes, insurance, maintenance, and property management.
Equity
The difference between a property's current market value and the remaining mortgage balance. If your home is worth $500,000 and you owe $300,000, you have $200,000 in equity. Equity builds through mortgage payments, appreciation, and property improvements.
Refinance
Replacing an existing mortgage with a new one, typically to access equity, get a better rate, or change terms. Investors commonly refinance to pull out capital for purchasing additional properties (cash-out refinance) while retaining ownership of the original property.
Due Diligence
The comprehensive investigation and analysis of a property before purchase, including financial review, physical inspection, title search, and market analysis.
Market Value
The estimated price a property would sell for on the open market under normal conditions. Determined by comparable sales, location, condition, and market demand.
Fixer-Upper
A property that needs repairs or renovations, typically priced below market value. Often targeted by investors using BRRRR or fix-and-flip strategies.
Value-Add Property
A property with potential to increase value through renovations, better management, rent increases, or adding units.
Property Management
The operation, control, and oversight of real estate by a third party. Property managers handle tenant screening, rent collection, maintenance, and day-to-day operations.
Mortgage Broker
A licensed professional who shops multiple lenders to find the best mortgage rates and terms for borrowers. Unlike banks, brokers have access to dozens of lending options.
Market Rent
The rental rate that a property could reasonably command in the current market based on comparable properties, location, and condition. Understanding market rent is essential to maximize income while maintaining competitive positioning and minimizing vacancy.
Contractor
A licensed professional hired to perform construction, renovation, or repair work on investment properties. Using licensed and insured contractors is essential for permitted work, as unlicensed contractors can result in voided insurance, property liens, and liability for injuries.
Property Inspection
A professional examination of a property's physical condition, including structural elements, mechanical systems, roofing, and other components, typically conducted before purchase. Thorough inspections help investors identify problems, estimate repair costs, and negotiate purchase prices.
Property Tax
Annual tax levied by municipalities on real estate based on the assessed value of the property. Property taxes fund local services and are a significant operating expense that investors must account for in cash flow projections.
Comparable Properties
Similar properties in the same market area used to establish fair market value or rental rates through comparison of features, location, condition, and recent sale or rental prices. Analyzing comps is essential when determining offer prices and setting competitive rents.
Property Tax Assessment
The process by which a municipality determines the value of a property for taxation purposes. Investors can appeal assessments they believe are too high, potentially reducing annual property tax expenses and improving cash flow.
Succession Planning
The process of preparing for the eventual transfer of a real estate portfolio to heirs, partners, or professional managers. Includes documentation, insurance planning, legal structuring through wills and trusts, and gradual transition of operational responsibility.
MLS
Multiple Listing Service - a database used by licensed real estate agents to list properties for sale, providing standardized property information, photos, and pricing. Investors also use off-market strategies to find deals not listed on the MLS.
Asset Management
The strategic oversight of an entire real estate portfolio, including decisions about refinancing, rent optimization, acquisitions, dispositions, and long-term planning. Distinct from property management, which handles day-to-day operations.
Hover over terms to see definitions, or visit our glossary for the full list.