Wholesaling vs MLS deals

[Ryan Ash]

Curious how folks are finding good potential BRRRR's where you can yank out roughly 50-60% of equity at the end and have it comfortably cash flow.

Are we finding deals on the MLS? Are we primarily using wholesalers? Or running direct mail/other marketing strategies ourselves?

MLS looks a bit light to me, wondering if I should adjust my perimeters or explore other avenues... Primarily looking at SFH's.

[Bo Smith]

You need both, but for different deal types. MLS is dry for BRRRR because every investor in your market is on the same listings. You're competing on price with 20 other people who see the same property at the same time. Wholesalers are where the meat is -- they're finding deals off-market at 5-10% discounts because they're marketing directly to sellers. That discount compounds into your equity position at the end.

Here's the thing though: wholesaler deals are inconsistent. Some weeks you get email blasts with garbage. You have to be on top of multiple wholesalers, text your criteria to guys regularly, and develop real relationships so they call you first. With MLS, consistency is built in -- you get new listings daily. What I do is spend 70% of my time on wholesaler deal flow (direct mail, cold calls, wholesaler relationships) and 30% on MLS as a baseline to understand your market's comp structure.

The 50-60% equity pull on a BRRRR is tough in any market right now, but wholesaler deals give you a shot at it. MLS won't. How many wholesalers are you actively in touch with in your market, and are you sending them your exact buybox criteria?