Is it possible to find a truly good deal on MLS

[Travis M.]

I understand that by the time it reaches the web it has been passed up by many experienced and connected real estate investors, as a rookie, it makes me skeptical about every deal that I see online, and also curious about how to find the deals before they reach the web, but do not have the right contacts for this yet 

is it actually possible to get a good deal online? 

[James Mc Ree]

Yes, it is. The process of getting to the MLS doesn't mean the property has gone through everyone else first. It may not have gone through anyone. I own 4 investment properties that are doing well and I bought all of them through the MLS.

You are unlikely to get smokin' hot deals on the MLS, at least on the surface, especially if they have been listed for a while. You will need to negotiate to get to the deal. My 3rd purchase was for a house listed at $75,000. It needed work and I negotiated it down to $48,000.

I was able to negotiate this down because the seller was an older person who had just moved out of state.  The seller and family wanted to do nothing regarding fixing the property.  As an example, there was a bit of black mold in the basement.  I asked the seller to hire a mold remediation company to minimally assess the mold, if not remove it.  They refused to do anything.  I explained mold remediation costs anywhere from $1,000 to $10,000 and I would have to estimate the risk.  I gave them an off-the-cuff guesstimate of $5,000, anticipating it was really a small job, very likely lower than this amount.  They accepted that estimate.  Actual cost: $1,200.  I "negotiated" $3,800 of value solely because of seller inaction, a little creativity and some luck.  This negotiation repeated for multiple repairs for this property.

You can also find sellers with properties in very good condition who are motivated.  Sign up for email alerts when properties are listed or prices change.  The new listings are what you are looking for.  Price drops can indicate increasing anxiety.  Families who listed earlier this year may have been hoping to have sold before school starts, for example.  They might be receptive to a lower cash offer as that is the only way to get a deal before school starts.

Jim.