wholesaling off the mls

Bird Dogs, Wholesaling
1

Can you wholesale properties off the mls? And how do you go about doing it? Some insight would be appreciated. Is this even possible anymore?

2

Wholesaling through the MLS is not impossible, just improbable. There are several reasons.

First, realtors have priced the properties. They are paid by commission. The more they sell the property for, the greater their commission. That is why most properties are at or very close to market value. Not that you can’t find a good deal in the MLS but the profit margin for a wholesaler will be much smaller.

Second, realtors are a possessive lot that viciously guard their real estate market against “non-licensed professionals.” Many, even most (but not all) realtors are not going to take kindly to low-ball offers from individuals that are bring buyers to pay more for a property and cut them out of a greater commission.

Third, buyers can get access to MLS listings (including REO) though other agents and online sources. So finding a “great deal” that they can cross check with a little work on their behalf is going to create problems down the road. If you can locate non-MLS listings, now you have an unknown property.

So, if you want to farm the MLS, go ahead, but you may find outside deals more profitable.

3

You can certainly wholesale properties off the MLS (I have been doing that for a long time,) but there are things you should be aware of to maximize your success rate.

  1. Make offers on properties that have been on the MLS for 90+ days
  2. Run your numbers as any wholesale deal and stick to that figure as making the offer - I don’t care what the listing price is
  3. Talk to the listing agent or train your agent to explain the listing agent what you are trying to do - earnest money, closing time, etc.
  4. Put a contingency on the contract that you will inspect the property after the accepted contract - I don’t waste time until I have a deal
  5. It is a numbers’ game - 50+% will be rejected, 30-40% conuntered and 10% accepted.
  6. I re-sell them at a price at or below what it was in the MLS - buyers will find out what it was listed at on the MLS (people are Google-happy :smile)
    The ones that are accepted off the bat concern me the most actually :). I expect to negotiate and the better you get at it, your rate of success will increase.
4

That was a great answer lauraalamery! I believe the secret of your success will lie in only making offers on properties that have been on the market for more than 90 days. This will add motivation to the seller to make a deal happen. A solid offer from a wholesaler (though they do not need to know that) will be a little easier to accept.

5

Yes you can.

I like to see how long its been on the mls first before I mess with it. The cooperation of the realtor plays a major role also. I have had some realtors tell me no its illegal to do this, or you cant do that here in this state. lol. :bs

To be honest, I like to stay away from these, but if the numbers look good, and the agent is on-board and ready, I may take a bite. :cool

6

I like the answers about the MLS, but I too have learned it is real hard working with realtors, so i just try to work with actual owners for now, until I can get this down.

7

Why would you need to tell the listing agent that you are a wholesaler? They do not need to know at all. You are an investor, simple as that. You are searching for great deals - no matter the condition. What you do with the property 30 seconds after you buy it is none of the agent’s business.

If you want even less problem, then do a double close rather than an assignment of contract. Get transactional funds to pay the purchase price and then pay back the funds with the second closing. Easy as that and no one gets hurt and everyone makes money!