Opinions on MLS properties??
Lender 路 Santa Clarita, CA 路 Member since 2018 路 110 posts 路 48 votes
Opinions on MLS properties??
Most Popular Reply
Mark SandersonPro Member
Specialist 路 Saratoga Springs, UT 路 Member since 2017 路 12 posts 路 17 votesHi Dan,
There are actually quite a few deals found on the MLS in LA. That doesn't mean you don't have to network as that makes deal finding easier - but there are deals on the MLS
I have a research assistant that looks at this for me nationwide.
Here's an example:
Sold in January 2019 for $205,000 - https://www.redfin.com/CA/Los-Angeles/1762-E-111th-Pl-90059/home/7314651/crmls-SB17210662
Now pending with a list price of $429,999 - https://www.redfin.com/CA/Los-Angeles/1762-E-111th-Pl-90059/home/7314651
Or
Sold in January 2019 for $430,000 - https://www.redfin.com/CA/Los-Angeles/535-W-124th-St-90044/home/7331796/claw-18-402646#property-history
Then sold in May 2019 for $600,000 - https://www.redfin.com/CA/Los-Angeles/535-W-124th-St-90044/home/7331796
Let me if this helps and if you would like to see some more.
29 Replies
- Real Estate Agent 路 Cleveland, OH 路 Member since 2019 路 359 posts 路 295 votes7y
@Dan Schweit You are assuming that the listing agent/owner even knows seasoned investors. Just because it is listed on the mls does not mean its a bad deal. Sometimes older folks just wanna get out of their house or people have to move quickly or whatever. It may be listed at market price or priced to sell but that doesnt mean thats what your offer has to be. It may take a bit more analyzing but I have found several deals off the mls. Also, the mls lists hud/bank/short sale properties too.
- Lender 路 Santa Clarita, CA 路 Member since 2018 路 110 posts 路 48 votes7y
Originally posted by @Account Closed:
@Dan Schweit You are assuming that the listing agent/owner even knows seasoned investors. Just because it is listed on the mls does not mean its a bad deal. Sometimes older folks just wanna get out of their house or people have to move quickly or whatever. It may be listed at market price or priced to sell but that doesnt mean thats what your offer has to be. It may take a bit more analyzing but I have found several deals off the mls. Also, the mls lists hud/bank/short sale properties too.
So....analysis paralysis then. I鈥檓 in the Los Angeles market and everyone seems to be an investor or know someone that is. So, I guess I assume that an agent would have some sort of pool of investors, big or small. That being said, we all know what they say about assuming. It鈥檚 good to know that you have found deals this way. That鈥檚 what I鈥檓 looking for is success stories using that as a tool. I appreciate the reply.
- Real Estate Agent 路 Cleveland, OH 路 Member since 2019 路 359 posts 路 295 votes7y
@Dan Schweit Sometimes you might just get lucky 馃槈 i got my current house for $200k because the older gentleman was retiring to europe and wanted a quick sale. It appraised at $255k a year later with some new flooring and fresh paint lol. Not an investment property, its my primary residence but still thats pretty nice! lol.
- 7yMark SandersonPro MemberSpecialist 路 Saratoga Springs, UT 路 Member since 2017 路 12 posts 路 17 votes
Hi Dan,
There are actually quite a few deals found on the MLS in LA. That doesn't mean you don't have to network as that makes deal finding easier - but there are deals on the MLS
I have a research assistant that looks at this for me nationwide.
Here's an example:
Sold in January 2019 for $205,000 - https://www.redfin.com/CA/Los-Angeles/1762-E-111th-Pl-90059/home/7314651/crmls-SB17210662
Now pending with a list price of $429,999 - https://www.redfin.com/CA/Los-Angeles/1762-E-111th-Pl-90059/home/7314651
Or
Sold in January 2019 for $430,000 - https://www.redfin.com/CA/Los-Angeles/535-W-124th-St-90044/home/7331796/claw-18-402646#property-history
Then sold in May 2019 for $600,000 - https://www.redfin.com/CA/Los-Angeles/535-W-124th-St-90044/home/7331796
Let me if this helps and if you would like to see some more.
- Rental Property Investor 路 Sykesville, MD 路 Member since 2018 路 18 posts 路 20 votes7y
@Dan Schweit I found my first deal on the MLS. It was listed for about a year and I noticed another price drop, a drop that put it well below comps. I put in an offer about 20% lower, was countered, and then gave the sellers my best and final offer. To my amazement, they accepted. For the longest time, I tried to figure out why the property didn't sell. Thought maybe the house was haunted or maybe something happed there, but nope. Turns out that timing is everything. The sellers were just ready to move on with their lives. The listing had become stale and everyone in town assumed there was something major wrong with it, but it was really in great shape. I spruced up the front and added parking, very valuable in this location. Now it's cash flowing and I have my first buy and hold for long term. I'm sure this strategy of finding motivated sellers on the MLS is too slow for most investors, but for me, I'm only looking to pick up a rental every few years, so I don't think it's a bad place to start. Just get out there and start making offers. You never know what might happen. Good luck!
- Real Estate Broker 路 Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH 路 Member since 2013 路 30k+ posts 路 20k+ votes7y
Originally posted by @Dan Schweit:
What are your thoughts on MLS listed properties (Redfin, Zillow, Realtor)? Does anyone find good deals this way? As soon as I find what seems like a deal I pause and wonder why, if it is a good deal, was it not snatched up prior to listing. Mind you i'm a beginner and am making the assumption that it was brought to a more seasoned investor before the agent decided to list. Is this just analysis paralysis or is there strong validity to this thinking?
An intelligent agent would never sell a property prior to listing it. As an agent you build your career by finding off market deals & putting them on the market. That is how you market yourself. Any agent who isn't doing that has no idea how to properly build & market their business. Considering the top 10% of agents sell like 90% of the inventory logic would dictate that at least 90% of the deals make it to the market.
- Lender 路 Santa Clarita, CA 路 Member since 2018 路 110 posts 路 48 votes7y
Originally posted by @Mark Sanderson:
Hi Dan,
There are actually quite a few deals found on the MLS in LA. That doesn't mean you don't have to network as that makes deal finding easier - but there are deals on the MLS
I have a research assistant that looks at this for me nationwide.
Here's an example:
Sold in January 2019 for $205,000 - https://www.redfin.com/CA/Los-Angeles/1762-E-111th-Pl-90059/home/7314651/crmls-SB17210662
Now pending with a list price of $429,999 - https://www.redfin.com/CA/Los-Angeles/1762-E-111th-Pl-90059/home/7314651
Or
Sold in January 2019 for $430,000 - https://www.redfin.com/CA/Los-Angeles/535-W-124th-St-90044/home/7331796/claw-18-402646#property-history
Then sold in May 2019 for $600,000 - https://www.redfin.com/CA/Los-Angeles/535-W-124th-St-90044/home/7331796
Let me if this helps and if you would like to see some more.
Thanks for the reply. Only thing this doesn鈥檛 tell me is what was the rehab cost. But I come across stuff like this often and they are the ones that I 2nd guess, but it seems that someone pulls the trigger on them and hopefully turns a profit. But, yes seeing these helps, so I do appreciate them.
- Lender 路 Santa Clarita, CA 路 Member since 2018 路 110 posts 路 48 votes7y
Originally posted by @Andrea O.:
@Dan Schweit I found my first deal on the MLS. It was listed for about a year and I noticed another price drop, a drop that put it well below comps. I put in an offer about 20% lower, was countered, and then gave the sellers my best and final offer. To my amazement, they accepted. For the longest time, I tried to figure out why the property didn't sell. Thought maybe the house was haunted or maybe something happed there, but nope. Turns out that timing is everything. The sellers were just ready to move on with their lives. The listing had become stale and everyone in town assumed there was something major wrong with it, but it was really in great shape. I spruced up the front and added parking, very valuable in this location. Now it's cash flowing and I have my first buy and hold for long term. I'm sure this strategy of finding motivated sellers on the MLS is too slow for most investors, but for me, I'm only looking to pick up a rental every few years, so I don't think it's a bad place to start. Just get out there and start making offers. You never know what might happen. Good luck!
That sounds like the one that would really give me pause, lol. I鈥檇 really wonder what is keeping it on the market that long. Good for you pulling the trigger and it working out. At the end of the day that鈥檚 what it takes with these listings. Just put it under contract and do an inspection. Thanks for sharing your story.
- Lender 路 Santa Clarita, CA 路 Member since 2018 路 110 posts 路 48 votes7y
Originally posted by @James Wise:
Originally posted by @Dan Schweit:
What are your thoughts on MLS listed properties (Redfin, Zillow, Realtor)? Does anyone find good deals this way? As soon as I find what seems like a deal I pause and wonder why, if it is a good deal, was it not snatched up prior to listing. Mind you i'm a beginner and am making the assumption that it was brought to a more seasoned investor before the agent decided to list. Is this just analysis paralysis or is there strong validity to this thinking?
An intelligent agent would never sell a property prior to listing it. As an agent you build your career by finding off market deals & putting them on the market. That is how you market yourself. Any agent who isn't doing that has no idea how to properly build & market their business. Considering the top 10% of agents sell like 90% of the inventory logic would dictate that at least 90% of the deals make it to the market.
I just always think that agents would prefer to take major fixers, that are going to sell to an investor anyway, and offload them prior to listing so as to ease the workload of marketing and taking lots of tire kicker calls. Seems like more work if you can just put it under contract the first week with one of your investors and move on. But I don鈥檛 know how agents think yet, so thanks for the insight, it helps.
- Real Estate Broker 路 Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH 路 Member since 2013 路 30k+ posts 路 20k+ votes7y
Originally posted by @Dan Schweit:
Originally posted by @James Wise:
Originally posted by @Dan Schweit:
What are your thoughts on MLS listed properties (Redfin, Zillow, Realtor)? Does anyone find good deals this way? As soon as I find what seems like a deal I pause and wonder why, if it is a good deal, was it not snatched up prior to listing. Mind you i'm a beginner and am making the assumption that it was brought to a more seasoned investor before the agent decided to list. Is this just analysis paralysis or is there strong validity to this thinking?
An intelligent agent would never sell a property prior to listing it. As an agent you build your career by finding off market deals & putting them on the market. That is how you market yourself. Any agent who isn't doing that has no idea how to properly build & market their business. Considering the top 10% of agents sell like 90% of the inventory logic would dictate that at least 90% of the deals make it to the market.
I just always think that agents would prefer to take major fixers, that are going to sell to an investor anyway, and offload them prior to listing so as to ease the workload of marketing and taking lots of tire kicker calls. Seems like more work if you can just put it under contract the first week with one of your investors and move on. But I don鈥檛 know how agents think yet, so thanks for the insight, it helps.
How do you think an agent gets their investors in the 1st place?
- Lender 路 Santa Clarita, CA 路 Member since 2018 路 110 posts 路 48 votes7y
Originally posted by @James Wise:
Originally posted by @Dan Schweit:
Originally posted by @James Wise:
Originally posted by @Dan Schweit:
What are your thoughts on MLS listed properties (Redfin, Zillow, Realtor)? Does anyone find good deals this way? As soon as I find what seems like a deal I pause and wonder why, if it is a good deal, was it not snatched up prior to listing. Mind you i'm a beginner and am making the assumption that it was brought to a more seasoned investor before the agent decided to list. Is this just analysis paralysis or is there strong validity to this thinking?
An intelligent agent would never sell a property prior to listing it. As an agent you build your career by finding off market deals & putting them on the market. That is how you market yourself. Any agent who isn't doing that has no idea how to properly build & market their business. Considering the top 10% of agents sell like 90% of the inventory logic would dictate that at least 90% of the deals make it to the market.
I just always think that agents would prefer to take major fixers, that are going to sell to an investor anyway, and offload them prior to listing so as to ease the workload of marketing and taking lots of tire kicker calls. Seems like more work if you can just put it under contract the first week with one of your investors and move on. But I don鈥檛 know how agents think yet, so thanks for the insight, it helps.
How do you think an agent gets their investors in the 1st place?
I hear that. But once they do get a handful of investors, won鈥檛 the agent then give them a first right of refusal on future deals prior to putting them on the open market??
And James, I鈥檓 not arguing with you, just curious. You鈥檙e a top contributor and I honestly appreciate you even responding to my inquiry.
- Real Estate Broker 路 Cody, WY 路 Member since 2010 路 28k+ posts 路 41k+ votes7y
@Dan Schweit what you're saying seems to make sense until you dig into it.
If someone brings me a property to sell, I can quietly sell it to another investor for a discounted price but that's not in the best interest of my client or myself.
When I put the property on the market, it's going to reach a wider audience and is more likely to bring a higher price. That is how I serve my client. The higher sales price also results in a higher commission for me.
As for finding deals on the MLS, it's absolutely possible. I work closely with an investor that has very strict purchasing requirements and typically only buys property at 30 - 50% below market, which is very hard to find. Yet in my small, expensive market, I helped him add four properties and 18 units to his portfolio, all from the MLS.
The vast majority of agents don't understand how investments work. They look at an investment with deferred maintenance or bad tenants and think it's a disaster that nobody will want to buy. If you are a student of the market, you'll recognize these "gems in the rough" quickly and can pounce on them before anyone else.
The DIY Landlord Book4.7248 Reviews - 7yBjorn AhlbladPro MemberInvestor 路 Shelton, WA 路 Member since 2017 路 6k+ posts 路 6k+ votes
Let's face it the majority of sales take place on the MLS. I would want my sale on there to get maximum price. Of course there are deals on the MLS-that is where most people buy and sell.
- Real Estate Broker 路 Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH 路 Member since 2013 路 30k+ posts 路 20k+ votes7y
Originally posted by @Dan Schweit:
Originally posted by @James Wise:
Originally posted by @Dan Schweit:
Originally posted by @James Wise:
Originally posted by @Dan Schweit:
What are your thoughts on MLS listed properties (Redfin, Zillow, Realtor)? Does anyone find good deals this way? As soon as I find what seems like a deal I pause and wonder why, if it is a good deal, was it not snatched up prior to listing. Mind you i'm a beginner and am making the assumption that it was brought to a more seasoned investor before the agent decided to list. Is this just analysis paralysis or is there strong validity to this thinking?
An intelligent agent would never sell a property prior to listing it. As an agent you build your career by finding off market deals & putting them on the market. That is how you market yourself. Any agent who isn't doing that has no idea how to properly build & market their business. Considering the top 10% of agents sell like 90% of the inventory logic would dictate that at least 90% of the deals make it to the market.
I just always think that agents would prefer to take major fixers, that are going to sell to an investor anyway, and offload them prior to listing so as to ease the workload of marketing and taking lots of tire kicker calls. Seems like more work if you can just put it under contract the first week with one of your investors and move on. But I don鈥檛 know how agents think yet, so thanks for the insight, it helps.
How do you think an agent gets their investors in the 1st place?
I hear that. But once they do get a handful of investors, won鈥檛 the agent then give them a first right of refusal on future deals prior to putting them on the open market??
And James, I鈥檓 not arguing with you, just curious. You鈥檙e a top contributor and I honestly appreciate you even responding to my inquiry.
Smart business owner knows if they aren't growing they are dying. Top producers become top producers because they are always focusing on their pipeline.
- Davis, CA 路 Member since 2016 路 595 posts 路 344 votes7y
Never assume that a property was passed on and is trash. It could have been overpriced, or just overlooked. Examine each one on its own with fresh eyes. My first deal in a very overheated area was just an overpriced fixer listed by an idiot agent. I got it for a song and crushed it because I made an offer and played a bit of hardball...
- Rental Property Investor 路 Canton, OH 路 Member since 2017 路 1k+ posts 路 1k+ votes7y
@Dan Schweit
MLS is fine, you just have to be diligent and patient. My first property (BRRRR) was found on the MLS (REO). It was one of my best deals for me. My 3rd property was also found on the MLS (lady was trying to move to Florida quickly!). Between the two, they CF about $530/month and I had no money out of pocket at the end of the day.
Just get familiar with neighborhoods and be prepared to make a quick offer when something pops up that's a good deal. My feeling is cash offers help a lot!
- 7yMark SandersonPro MemberSpecialist 路 Saratoga Springs, UT 路 Member since 2017 路 12 posts 路 17 votes
Hi Dan,
Part of my research is to sample closings that look like flips nationwide.
I've sampled California a few times in the past year. So nowhere near a complete report but good information.
So just in the City of Los Angeles I'm showing 418 potential flips.
Of those, 231 were originally listed on the MLS - that's 55%
Glendale is 7 of 18 were originally listed on the MLS - 39%
Manhattan Beach 6 of 7 were originally listed on the MLS - 86%
Long Beach 57 of 95 were originally listed on the MLS - 60%
My take away is there are a lot of flips to be found on the MLS
The other take a way is that there are a lot of properties to be found using other prospecting methods.
- Real Estate Broker 路 Sacramento, CA 路 Member since 2019 路 198 posts 路 46 votes7y
@Mark Sanderson - What are the other prospecting methods?
- 7yBjorn AhlbladPro MemberInvestor 路 Shelton, WA 路 Member since 2017 路 6k+ posts 路 6k+ votes
My 12 unit apartment building was on the MLS-I got it off there in a hurry. It has been a great investment!
- Real Estate Agent 路 Los Angeles, CA 路 Member since 2017 路 120 posts 路 36 votes7y
@Dan Schweit many sellers prefer to take a chance on the market, thinking that competition will drive the price up (which it generally does here). I've found a few deals for clients only through the MLS, you just have to know what you're looking for and be ready to move. You wait too long in this market and it will be gone. I will say that an agent will usually know if a listing before it gets to the other sites, it usually takes about 24 hours to syndicate if the seller has agreed to let that happen.
- Lender 路 Santa Clarita, CA 路 Member since 2018 路 110 posts 路 48 votes7y
Originally posted by @Nathan Gesner:
@Dan Schweit what you're saying seems to make sense until you dig into it.
If someone brings me a property to sell, I can quietly sell it to another investor for a discounted price but that's not in the best interest of my client or myself.
When I put the property on the market, it's going to reach a wider audience and is more likely to bring a higher price. That is how I serve my client. The higher sales price also results in a higher commission for me.
As for finding deals on the MLS, it's absolutely possible. I work closely with an investor that has very strict purchasing requirements and typically only buys property at 30 - 50% below market, which is very hard to find. Yet in my small, expensive market, I helped him add four properties and 18 units to his portfolio, all from the MLS.
The vast majority of agents don't understand how investments work. They look at an investment with deferred maintenance or bad tenants and think it's a disaster that nobody will want to buy. If you are a student of the market, you'll recognize these "gems in the rough" quickly and can pounce on them before anyone else.
I guess it all depends on the sellers goals. Id assume the sellers looking for quick sales on properties in disrepair would be ok with not hitting the open market, but obviously if top dollar is their goal it makes sense.
- Lender 路 Santa Clarita, CA 路 Member since 2018 路 110 posts 路 48 votes7y
Originally posted by @Mark Sanderson:
Hi Dan,
Part of my research is to sample closings that look like flips nationwide.
I've sampled California a few times in the past year. So nowhere near a complete report but good information.
So just in the City of Los Angeles I'm showing 418 potential flips.
Of those, 231 were originally listed on the MLS - that's 55%
Glendale is 7 of 18 were originally listed on the MLS - 39%
Manhattan Beach 6 of 7 were originally listed on the MLS - 86%
Long Beach 57 of 95 were originally listed on the MLS - 60%
My take away is there are a lot of flips to be found on the MLS
The other take a way is that there are a lot of properties to be found using other prospecting methods.
This is great information, I appreciate it! Im in a sub market of Los Angeles, the San Fernando Valley and am looking to flip in this area, any data on this??
- Lender 路 Santa Clarita, CA 路 Member since 2018 路 110 posts 路 48 votes7y
Originally posted by @Account Closed:
@Dan Schweit many sellers prefer to take a chance on the market, thinking that competition will drive the price up (which it generally does here). I've found a few deals for clients only through the MLS, you just have to know what you're looking for and be ready to move. You wait too long in this market and it will be gone. I will say that an agent will usually know if a listing before it gets to the other sites, it usually takes about 24 hours to syndicate if the seller has agreed to let that happen.
Im glad you bring that up as that was another question of mine. The speed with which MLS properties make their way to the sites I mentioned. Are you saying that there is a 24hr lag time between the two?? Also, which part of Los Angeles are you in?? We should connect and discuss.
- 7yMike CumbieBusiness MemberREALTOR庐 路 Brockport, NY 路 Member since 2015 路 3k+ posts 路 4k+ votes
The MLS is a sales channel. Sort of like saying "What do you think of the cars in a newspaper ad?" or "What do you think of Shampoo that has TV commercials". Always look into everything that fits regardless of where it comes from (Friend talking, MLS, overhear a waiter saying his aunt needs to sell). The real kicker is to be ready to move at a moments notice. It's not finding a deal then trying to put together financing while others are looking at it. The trick is to look at everything that looks like it might be a deal and striking fast and aggressive.
Just my 2 cents and good luck!
- Real Estate Agent 路 Los Angeles, CA 路 Member since 2017 路 120 posts 路 36 votes7y
@Dan Schweit generally it is a 24 hour lag time, I think it depends on how busy the MLS is with new listings. I work most of LA and the Valley. My investor clients are mostly South LA but we had found a few deals in the Valley (just didn't get our offers accepted). Sent you a connection request. Always happy to chat!
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