Newbie and the MLS
I am a brand new investor looking for my first flip. I've looked at several properties I found on the MLS and have offered on three of them. All three went to highest and best and my highest wasn't high enough. There also don't seem to be very many REO's on the MLS so I'm thinking that the banks are putting them on the market slowly to increase demand and therefore selling price.
My question is, in this scenario, how do you win? You still want to make a profit of 15-20% and if the numbers don't work they don't work. I won't offer more than my numbers allow.
Another question I have is, is it possible to go to the bank directly, before a property hits the MLS, and see if you can buy it that way? Is this frowned upon by the banks? If this is doable, how does one find the right person to speak to?
Thanks in advance for your help!
Stan
#2 Foreclosures Contributor
- Paradise, CA
if you want the property, you need to have the best offer. It isn't always the highest offer but usually is. If yours is a little bit lower but you are cash and the higher offer is VA, you have a chance. Short of a scenario like that, if you want it, you have to have the highest offer.
No. It's not possible to work directly with the bank before it hits MLS. There is a reason we put them on MLS and if its a government loan, its required to be listed on MLS. Yes, its frowned upon by all but the tiniest of banks that hold their own paper. If you find a tiny bank with their own portfolio, heck, ask the teller. She's probably the asset manager too.
#2 New Member Introductions Contributor
- Specialist
- Rockland, MA
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#2 New Member Introductions Contributor
- Specialist
- Rockland, MA
Go to zillow search lowest price props that are vacant corporately owned or bank owned are likely REO's. Make note of the brokers banks use the same broker in an area for their REO's. Call them ask them what they need to close on in the next 30 days. They will likely point a deal at a discount.
Paul
