I’ve wholesaled many FSBO’s in the last 2 years but never a listed property because most investors are already aware of these houses and if not they will see the realtor sign in the yard once they view the house…
Is there anyone out wholesaling listed houses successfully? If so, what am I missing here?
You are missing a big part of the game… The MLS is a very powerful tool that will make you a millionaire in no time…
By using the MLS you can go in and do a search daily for all properties listed that are listed that day. You can also go in and do a “revision to list price” and find out what listings have lowered their price. These are truly motivated sellers and I would offer on these the day they lower their price!
Here is how the MLS game works… Every day you log on and pull up all new listings and filter out the ones that dont meet your criteria. You want to look for the ones that say: Vacant, fixer-upper, needs work, REO, seller moving, do not disturb tenants… These are your best MLS prospects… After you have a stack of newly listed properties to look at, you then map them out and put them and go look at them. You then come back and decide what you want to bid on them and offer on them the same day. If you see a property you really want to buy, stop everything you are doing, contact the listing agent directly and have them write a cash-offer on the property for you. You will be amazed at how many deals you get going direct. Think about it, the listing agent will double end the commission…
The most important part of playing the “MLS First Day Out” game is that you will build a repore with agents. If you offer on a property that does not get accepted, you can ask them the million dollar question: “What else do you have coming up that I can look at?” You can also do a search in the MLS and see who are the REO agents with the most inventory and contact them and see if they will contact you first before listing in the MLS. Some of my most profitable deals have come from REO Agents who call me before listing in the MLS:)
So to answer you question, if you learn to play the MLS game, it can be very profitable. When you go to wholesale just tell the listing agent you are closing in your partners name!
I understand how to negotiate deals but with a listed property my buyer has to see the property the same as he does with a FSBO. With a FSBO it’s normally vacant and I have UNLIMITED ACCESS to the property that allows me to send investors out at any time. With the listed property, this is not possible or am I missing something here.
The investor wants to inspect a listed property the same way he inspects a FSBO.
How do you handle this hurdle? That’s my issue……
Get the property tied up first and then give the address to your wholesale buyer.
Have them drive by and if they absolutely have to get in, tell your agent to arrange another walk-thru on the property with your contractor. I have even gone so far as to go knock on the door and ask the owner if I could come in and show my friend the house I am buying…
First thing you do is give them the address and your estimate on fix-up. Most wholesale buyers I deal with do not have an issue with getting inside if it is
a true wholesale deal. They will look in the windows and by their experience they can estimate repairs just by doing that. I have personally bought several properties that I could not get inside… Back when HUD had their auctions, the competition would change pad-locks so nobody could get access. Guess what, when the auction came, there would only be limited people bidding on the property, I was one of them…
So get out there and start playing the MLS game. I would recommend going days back-1
and looking at everything as soon as they are listed. Get your offer in the same day and follow-up until it is sold. Dont forget to bid on the “Revision To List Price”. There are some great deals that come this. Also, if you see a house you absolutely have to have, try going direct to the listing agent. Getting inside is not an issue. Never has been for myself or any investor friends I deal with.