Wholesalers just listing MLS? What gives?

Question

Hi, I've been searching the internet and MLS for a few weeks to get an idea of prices in my area (central Florida) as I get closer to purchasing my first investment property. I've come across a couple websites that claim to be wholesalers but I've noticed that they typically have the exact same properties listed, which I've also seen on Craigslist or even the MLS.  What gives here?  Are these people actually wholesalers, I'd love some insight into this from you guys.  I don't mind going to a wholesaler to find my first property, but I don't want to get taken advantage of either.  Any advice or tips would be much appreciated.

Account Closed · Answer

From my experience there are a lot of Realtors that claim they are Wholesalers as well. To find the really good ones you have to kiss a lot of frogs or start out asking around your Real Estate club in your area.

John Thedford · Answer

To be legal in FL you MUST have equitable interest in a property to "wholesale" it. That doesn't mean having a signed contract in itself. You must have earnest money funded with either an attorney or title company. Failure to have equitable interest can result in a felony charge. Also, the BS contracts with 90 ways to exit (and not lose a dime) won't fly according to DBPR. Know your laws. The last things anyone wants is a felony charge (or three) like a local person is facing for "wholesaling" without equitable interest. We just had DBPR come speak at our local REIA meeting as well as a local attorney. You can invite DBPR to come speak at yours as well.

Lynn Bown · Answer

The bad thing about syndication is it creates a playing field of false representation making it hard to find the source.  The good thing about it is the raw data available in the MLS.  If you have MLS access or access to a good agent in your area, one forensic approach is to do a search of all sold properties in the past 6-12 in your area.  Use the criteria of your target property, homestead=no sold terms=all cash and owner(seller) name.  In my MLS, in North Port Fl, these fields have to be added using an advanced search.  Then export your results to a spreadsheet.  You will have a few thousand results.  Then cut and paste each address into the tax records and in a new column paste the buyer name.  When done sort by the buyer name and you will find a pattern of multiple buys from the same buyers originating from the same bank on the same dates or other clues to get the most out of the data.  Then you will have the raw data to get you leads to the right people to chase down.  This is tedious and time consuming but its one way to get to the core data. But as Scott said "kiss some frogs" may also help!!

Eric Moore · Answer

Account ClosedSome wholesalers put it on MLS to see if anyone will bite there as well.  You mentioned you don't want to get taken advantage of and I totally agree with you.  But if you run your numbers and know your rehab costs then you will be confident if it's a deal or not.  Most likely if it's on the MLS then that mans it's not a deal.  I've wholesaled properties and I also fix and flip.  90% of the "wholesalers" you come across don't do a good job.  They either distort the after repair value or they low ball repairs.  Also, the big companies that wholesale try to sell you houses that are $.78 on the dollar which is ridiculous.

I recommend searching the company profiles in BP and also search through the marketplace.  Try them out.  I also recommend doing your own marketing.  I found that's the best way to get "actual" deals.  Best of luck!  And go Central Florida!  I grew up in Orlando and went to UCF.

Dan Oliver · Answer

Account ClosedGood morning.  You are correct.  There are a lot of different variations of wholesalers out there, just like there are in any business.  You need to set yourself with a reputable group who has been in the business for years and has the reputation you are looking for.  If you would ever like to get together and sit down to discuss your investment goals for the year and to learn how to get there, don't hesiate to reach out.  Best of Luck!

Lynn Bown · Answer

*"Roshard said" not Scott sorry

Wholesalers just listing MLS? What gives?

Most Popular Reply