I have a question about a method to obtain wholesale deals. I have noticed that some guru are showing a method to find deals using REALTOR.COM and ZILLOW.COM. It shows you how you can find dirt cheap property thru the MLS using REALTOR.COM. Then, you can use ZILLOW.COM to find comps for the property. So you can use these two websites to make decision to buy a house to wholesale. Here is the question:
Why doesn’t a rehabber go to the MLS directly and bypass you as an investor? I don’t see how I can wholesale properties off the MLS. Rehabbers can do it themselves. Is there anybody sucessful doing this? I don’t want to waste a thousand dollar deposit to find out his won’t work. Thanks for your help.
Mike Weller
A lot of the times the deals on the MLS aren’t right there in front of you. You have to “create” the deal by making offers on properties. You are hunting for motivation. If you make a low offer on a property and get a counter that is a good sign. You will have to make a LOT of offers and this is why the rehabber needs you the wholesaler. It takes time.
Also you’ll have to find a realtor that’ll allow you to make multiple offers using the same earnest money check or copies of that check. Not a good idea to tie up 1000’s of dollars just on offers.
Hope that helps
I’ve got a few good relationships with agents that will give me a heads up on coming up properties and will let me know a day or 2 before they put on mls.U have to move fast still(cause I’m sure I’m not the only one they are dealing with).It’s valueable to know the ones coming up.You also can research them yourself by finding out when they are goin to the courthouse.See which ones that don’t sell and watch for them as they will be going to an reo agent.Some of my offers I don’t have to write earnest on until I get an accepted offer.Try also to look into the motivated sellers,sometimes the listing agent will tell you when they have to move or may be losing it.It’s just as important to know the owners story as the price as that will effect the price.Hope this helps.
“Is there anybody sucessful doing this?”
Hi There!
Steph aka TampaSteph does this everyday. She scours the MLS and is very successful finding the REO deals in her neck of the woods. Send her a PM. Maybe she might be able to help you learn her secret. She also has great blog and a big following. I send you a PM of her blog’s website.
If i were you I wouldn’t base my offers on zillow comps. I would you use the comps from the MLS. Those zillow comps are always all over the place.
To answer your question, the main reason that investors don’t bypass you and go straight to the MLS is because it’s normally difficult for an investor to know about every great deal in your marketplace.
Basically the first one with the contract wins…
Profit TIP: I have been in situations where I put a home under contract and won out against 6 other offers…Then i’ll contact the listing agent and ask if they would mind mentioning to the other agents when they call that I may be selling the home immediately after closing.
In that case I could sell their investors my llc, assign the contract, or double close.
That idea seems kind of moronic to me about zillow and realtor.com…for a couple of reasons
#1 Zillows comps are going to be way out of wack because home prices are declining so rapidly in many markets.
#2 If you find a home on realtor.com your going to need to deal with an agent anyway, so why not just have one agent doing your work for you?
I scratch my head sometimes at the strange ideas “Guru’s” cook up, while their missing the good stuff that’s right under their noses…
Good luck
Eric Medemar