Buying Off Market Properties- Risks?

Question

So there's a general message given out by realtors and others that buying properties off of MLS is a bad idea, and FSBO or wholesale deals are usually hiding something.

Would love input on this, and what extra steps if any do you take to mitigate the risk when buying off market?

Logan Hand · Answer

Hmmmmm interesting comment. To me this is ridiculous in the sense that realtors are saying those things because they want you to buy their "listed"properties. Which most likely come along with an inflated price tag. Properties listed on the MLS also can hide things as well that owners dont disclose or maybe cant be seen.

In my opinion a good wholesaler should think like a flipper/landlord and tell the end investor of everything that is seen and known. The extra steps should be finding a good wholesaler in your area that can refer you to some of their investors that buy from them. Ask them their experience with the wholesaler and if they would recommend doing business with them. At the end of the day getting the asset for 60-70 cents on the dollar should mitigate some risk of things that may come down the road. However I think its impossible to eliminate those occurrences all together.