What MLS Searches to Practice as a New Broker/Investor at My First MLS Classes?

Question

Finally get to go to MLS classes after comleting real estate school and want to focus on REO's to rehab initially. I wonder what to emphasize in doing searches as a beginner?

I've seen many keywords in other posts such as "fixup, handyman special " etc. I finally made it to MLS classes - any suggestions on what to search for, or other thoughts?

J Scott · Answer

Here's how I do it...

I will set up searches based on my price range and property criteria, and then just go through all the new listings every day.  I have one main search query and several "specialty" searches.

For the main search query, I search the main zip codes I focus on, up to $100K list price (I don't purchase higher than that), 3+ bedrooms, 2+ bathrooms, built after 1978.  My search query incorporates both new listings and modified listings (price drops, for example).

On a typical day, this search will return about 50 listings.  I click through each listing, and can tell which ones are foreclosures in about 3 seconds (either by the agent, the private remarks, or a couple other fields that make it obvious).  About 95% of the listings won't be very interesting to me, and I'll spend a few minutes reviewing the 5% that are.

For those, I'll look at pictures, tax records, comps in the neighborhood, etc, if I don't already know that info off the top of my head.

I then send any listings I'm interested in (generally 1-2 per day) to my project manager to take a look at for me...

Burt L. · Answer

I had a chance to go to an open MLS session, where the trainers could spend some 1:1 time with me. Learned how to do a power search, and map searches (selecting an area by drawing an outline). I'll be taking their CMA class and public records class also. As long as I"ve wanted access to the MLS, I"m seeing there is a little more to it than I thought.

Someday I hope to be able to forward properties I'm interested in......... to my own project manager.

Burt L. · Answer

I appreciate the tips from experienced MLS searchers. I've taken classes at the MLS now on searches, listings, and MLS statistics. Being able to create reports on sold properties (the past) versus those under contract (present) and then adjusting for concessions is helpful in determining what the future ARV will be. It seems easy to make the head swim with too many statistics, though.

I do need to learn the codes for the different suburbs I'm interested in on REO properties. I hadn't considered using terms like bank-owned and REO's in the remarks section and do have a collection of terms collected from other BP posts.

The MLS is an incredibly strong tool, and learning to use it well will take some time. Are there specific statistics others emphasize, in addition to DOM, and Actives vs. Solds, or other crucial data to gleam, for those that want to Do REO's?

We were reminded again today that national r/e statistics have little meaning, other than being what retail clients will likely come armed with.

Anson Young · Answer

Denver MLS has no 'for rent' areas, thankfully.  On my Phoenix MLS system I have to sort thru too many for rent listings to get to what I need.

Burt, try a power search, pick an area you like, or hit all the main denver suburbs (DNE DNW etc), then add 'remarks' to the search and go for 'REO, bank owned, fannie' etc.

That should start you out pretty well.

Steve Babiak · Answer

Brandon,

Do you have to distinguish the "for sale" vs "for rent" listings in your MLS?  I'd imagine the "for rent" ones will all be really low in that price range.

Brandon Kamm · Answer

If you are referring to search in the MLS I have always sorted by property type (Residential/duplex/,multi) and then set search criteria to price range of $1 to $20,000.  I then sort by days on market and look at map view.

This gives you part of town and those that will fall in acquisition cost range.  FRom there you can take a look and get info on rehab to see what you would have to be in a property for after rehad to see if it makes sense.

Hope that helps

What MLS Searches to Practice as a New Broker/Investor at My First MLS Classes?

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