Okay for Realtor to Disclose Personal Info from MLS?
Wholesaler · Dallas, TX · Member since 2013 · 4 posts · 0 votes
I am a wholesaler and am working on building up my list of cash buyers. I have heard from most people that the best way to build a cash buyers list is by making friends with a RE agent and having him/her look up on the MLS the cash transactions that have taken place in the city within the past 60 days. I would then contact these investors with a yellow letter asking if they are interested in being added to my buyers list. If they give me info on what they are looking for, I can find deals that specifically match their needs. My question is is it okay for a realtor to look up info about cash buyers on the MLS and then provide all of the info of the buyers (name, address, what they purchased, etc) to a third party? I want to make sure I don't put a realtor in position where they could be liable for anything or possibly lose their license.
If such information was meant to be public it would be listed on the public side of that listing. Buyers are not listed on the MLS. Sale contract information from past sales is confidential. Asking a Realtor to contact people to see if they would authorize the Realtor to release privaye information sure is asking alot, putting the Realtor in a very odd position if they would even entertain the thought. Can you imagine the out come for a Realtor and Broker for disclosing client information.....does that even pass a sniff test???? :)
If such information was meant to be public it would be listed on the public side of that listing. Buyers are not listed on the MLS. Sale contract information from past sales is confidential. Asking a Realtor to contact people to see if they would authorize the Realtor to release privaye information sure is asking alot, putting the Realtor in a very odd position if they would even entertain the thought. Can you imagine the out come for a Realtor and Broker for disclosing client information.....does that even pass a sniff test???? :)
Sorry I don't I think I correctly worded part of that question. I wouldn't need the realtor to look up the name of the buyer/owner of the house, just the address that was purchased for cash. If I wanted to find out the names or mailing address (in case it's an absentee owner), I could simply look it up using public tax records. From what I've been told, most of the info I'm asking the agent to look up on the MLS is public. The MLS is just a more efficient way to find the info.
I can't imagaine a real estate agent putting in that much time and trouble without being paid.
I'm a licensed realtor, think I know how to use MLS, and buyer names are not revealed in sales data, not here anyway. I can pull up a list of sales that were reported as cash sales by the listing agent. That would be quicker than using publice records, as you could get a list of sales, then you'd have check each one for a mortgage. With the addresses you could find the buyers of course. I don't believe that generating a list of addresses, sold with cash, will violate any disclosure restrictions. But then again, if you're wholesaling to investors, why would I bother?
Wayne Brooks asks a good question you should ask yourself before you contact any realtors. Whats in it for them?
I would mostly be targeting new real estate agents who are looking to build their own leads. A wholesaler may get about 50 leads (can be much more) every month. These are people that have seen the wholesaler's ad or letter and is curious. Realistically only about 2 out of 50 leads turn into a deal. Wholesaler are targeting a very specific group: very motivated sellers with at least some equity. The 48 leads that didn't convert are mostly people who arent motivated enough or they owe more than their property is worth. Although a wholesaler can't directly help these 48, he can refer them to a good realtor that could help them list the property or complete a short sale. In addition, a large amount of the buyers wholesalers sell to are rehabbers. The wholesaler can again refer the realtor as a great person to use when it comes time to sell. I would think an agent that is need of more referrals would definitely come out ahead. However, I understand that the MLS is different for each state. If the MLS in your area can't sort cash buyers in an efficient way, then it may not be worth it. But I know in some areas, it isn't too hard for an agent to filter the search to come up with properties in the area that had recently been purchased with cash.
Ryan Moore I too am a licensed agent (though I only use my license for our deals) What you want is for someone to do your work for you, with the hopes of getting your leftovers. Good luck with that. If the agent is going to look up all that information, they would be smart to go after the listings themselves, sell the properties and make a commission, rather than pass them on to you...On some of this stuff, the only way to get the benefit is do the work!
Ryan,
I was wondering if that's the answer you would have. That's the right answer. As long as you will refer retail clients to your realtor, it makes sense.
Again, we can easily filter cash sales, but there are no buyer names. I doubt that many areas, if any, would list buyer names in the MLS.
@Karen M. That is a very interesting take on it. You’re the first agent I’ve come across that has had that view. Right now I am trying my best to network and kind of build a team of people with different backgrounds. I only want people on my team that I know can provide value to (it has to be a win for them). When it came time to add a realtor to my team, I tried to think of what benefits I could provide to him/her. I figured if I was a realtor, the most valuable thing I could have is a strong network of leads and referrals (especially if I was relatively new). To a wholesaler, those extra 48 leads a month may be “leftovers”, but to a realtor they are actual leads. A wholesale is going after a very specific seller. One who is motivated enough to the point that they need to sell the house now (even if it means they are selling the house at a 50% or 60% discount), and one who has at least a little equity. These other 48 could potentially be great customers for a realtor. These are homeowners that may need to sell but don’t mind waiting a few months to close; or they may be homeowners that have to sell ASAP but need a realtor to help them with a short sale because they owe too much. I would also think that the benefits you could receive from a wholesaler’s buyer’s network is even greater. After a wholesaler flips a contract with a rehabber, the wholesaler can again suggest that the investor use the realtor when it comes time to sell. This not only gives the realtor a shot at making commission on that sale (with no marketing), but a chance to build a long term relationship with an investor that rehabs multiple homes every year. Lastly, most wholesalers I know are looking to buy and hold properties after they acquire enough cash. I know when I look for a rental property, I’m not going to care as much about buying a property at a discount. I will be looking for houses that I know will produce great cash flow, and I’ll need help finding these houses. Most likely I am going to use the realtor I had built a relationship with to show me these properties year after year. Although the realtor isn’t getting much short term gain, to me it seems the long term value is huge. However, I really appreciate hearing your take on this since you are a licensed agent. So if you still think that the realtor would be getting ripped off in this situation, please let me know. I can revaluate what other value I can give before entering these sorts of agreements with realtors. Contrary to what you might think, I want act in the best interest of the people I will be working with.
@Wayne Brooks Thank you for answering my original question. I know having a realtor look up addresses of homes in the MLS for a third party can be sort of a grey area. I had asked the original question because I didn't want to put the realtor in a situation where it would even appear that the realtor could be misusing his access to the MLS. Although he came to the conclusion that it would be okay, he learned that the MLS in his area didn't have an efficient way of sorting home by cash purchases. Last night, I ended up just generating a list off List Source for only $12. I am still planning on referring the homeowners I can't help myself to this specific realtor. I was rather impressed with this realtor since he was genuinely interested in helping me in my endeavors, rather than just trying to find a way to make a quick commission off me.
I'd think the value you are placing on these leads for new Realtors is over stated. A newbie can get with a well established listing aagent and hold open houses for them getting current leads of people buying now or soon.
If you want to find flippers, just stop at homes being rehabbed, if they aren't there a worker will tell you when they will be.
The emphasis on finding cash buyers is waaaay over done, most large rehab organizations leverage deals, obtain construction financing and obtain loans. Even those you might initially buy with cash will use financing at some point. Thinking that you get some inside secret, straight quick buyer that buys anything just because he uses cash is misguided. You buy with cash when you can't finance, usually due to property condition (which is rare really) or due to time constraints.
Ryan, you might be able to qualify buyers, size them up as to needs, ability, time lines to buy, but a list of names of people who have had an interest in buying a house is not that valuable. I can go have breakfast at Waffel House and find someone "interested" in moving to a new rental or buying a house, before I finish my coffee.
But, if it works for you, use it.
I'd suggest you make your request for information crystal clear to the Realtor; Realtors get all kinds of requests and asked questions allthe time but I gotta say, when you get a request that is off the norm where someone is asking for what might be private, that Realtor has to stop and think, (can I do this, should I do this, is there any benefit for my time). Consider how you will be preceived asking off the wall stuff. There are many new Realtors that you will scare off asking for them to do something they have not heard of.....