Wholesaling vs MLS deals

Member since 2026 · 14 posts · 9 votes

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.

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Bo SmithPro Member

Hinton, WV · Member since 2026 · 1k+ posts · 373 votes

6mo

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?

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Rod HanksBusiness Member
Insurance Agent · Dallas, TX · Member since 2013 · 743 posts · 462 votes
6mo
@Ryan Ash

MLS deals are thinner right now, so if you’re only looking there you’ll miss a lot of opportunities. Most strong BRRRR deals are coming from wholesalers or direct-to-seller marketing where there’s less competition and better pricing. MLS can still work, but you’ve got to be aggressive, look for mispriced or poorly marketed listings, and move fast. If you’re serious about hitting those 50–60% equity pulls, you’ll likely need to tap into wholesalers or build your own lead flow—MLS alone usually won’t get you there consistently.
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Janice Carter
Real Estate Broker · Atlanta · Member since 2024 · 1k+ posts · 606 votes
6mo
Ryan, for strong BRRRR deals, most investors are finding them through wholesalers, direct to seller marketing and local networking.

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Bo SmithPro Member
Hinton, WV · Member since 2026 · 1k+ posts · 373 votes
6mo
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?
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Bo SmithPro Member
Hinton, WV · Member since 2026 · 1k+ posts · 373 votes
6mo
Real answer? You need all three. MLS is going to be your bread and butter for most buy and hold deals because the numbers are already vetted by comps, appraisers, and other investors have already looked at them. But MLS is also where competition is highest, so margins are tighter unless you find something overlooked.
Wholesalers are useful for off-market access, but you're paying a middleman and that costs you 5-10k on most deals depending on the market. Where they shine is in markets where inventory moves fast and you need deals that haven't hit the MLS yet. The best wholesalers I work with have built real systems -- not just bird dogs making calls. If you're going to work with wholesalers, vet them hard. A bad one costs you more than a good one saves you.
Direct mail is slower and more expensive upfront, but it's yours. No competition on those leads initially. I've seen mail work best in B and C markets where there's less sophisticated marketing already happening. You're also dealing with estate sales, divorce situations, and out of state landlords -- situations where the seller hasn't thought about listing yet. That changes your negotiating position entirely.
The real question is what's your target after you hit rehab? What cash flow number are you trying to hit on those BRRRRs once you stabilize?
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Matt DingusBusiness Member
Real Estate Agent · Pittsburgh, PA · Member since 2020 · 83 posts · 76 votes
6mo
The answer is you need to always be on the lookout for deals - no matter the pipeline or way they come. MLS, Wholesalers, Friends/Family, neighbors, driving around...whatever. Because deals can be found in any of those avenues so I would take advantage of each - especially when you're first getting rolling you gotta take them however you can get them. That being said, your MLS and wholesaler deals are going to be the most competitive so naturally that's where you'll see the margins get tighter. Off-market/direct to seller is where you'll see larger margins most often so those are typically where you'll get the best deals. But people flip deals they've bought on the MLS and make 70k+, and then another who profits only 20k on an off market deal. So, in my opinion it's just about being smart and getting better on how to spot a deal as you get more experienced, no matter where its found - and also managing the rehabs effectively/efficiently.
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Bo SmithPro Member
Hinton, WV · Member since 2026 · 1k+ posts · 373 votes
6mo
You're looking at this exactly right. The MLS is picked over in most markets -- good wholesalers see deals earlier and have better access to off-market inventory. But here's the nuance: the MLS works fine if you know what you're looking for and you're speed-oriented. You need to set strict criteria, run numbers fast, and execute quickly. Most investors look at the same deals at the same time, so you can't hesitate.
Wholesalers and direct marketing are where the real deals sit. The gap between the best wholesale deal and the best MLS deal is usually 10-20% in your favor if the wholesaler has good sourcing. Direct mail works but it's a math game -- you're paying for volume and conversion is typically 1-3%. Google ads can work but you're competing against other investors bidding up the same keywords.
My take? Run MLS as your baseline (set up saved searches, get alerts, move fast), but layer in 2-3 wholesalers you trust and run a small direct mail campaign targeting specific zip codes. For BRRRR, you want the purchase price to be such that with rehab and refinance, you're pulling out 50%+ equity. That's rare on MLS. How many deal flow sources do you currently have active?
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Dominic Magallanez
Investor · San Antonio, TX · Member since 2026 · 43 posts · 10 votes
6mo
I have been interested in this too. Lookin at this closely.
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