How to find deals on the MLS

Question

I am a realtor in York PA and starting to work with investors. How do I find deals on the MLS and how do I know what to look for? I guess the hardest part is finding a starting point.

Jonathan Greene · Answer

If your market is competitive like ours, stop taking investors out (unless they are used to multi-bidding and going high) on the new to market ones and look for what's still around at 30 and 90 days and why. Your absolute best bet for investors is to set a hot sheet for every morning for all Back on Market properties in your target areas. Ones that were under contract, but fell out for some reason. You want the ones that fell out later because that indicated a mortgage issue which lines your clients up to hop into the deal quick to close it because the seller was counting on it. If a deal falls through in 3 days, it's buyer remorse. If it falls through in 10 days, it's an inspection issue and that should be of note that you are looking for something major. I hope that helps.

Alex Deacon · Answer

@Collin Boyer I would agree with both  @David Haynes and @Jonathan Greene . I am an agent in the Pittsburgh market and unless you are working with a very serious investor you are going to run around never getting a deal accepted. One of the keys is to watch the market daily and even a few times a day. Also to watch the off market deals.

David Haynes · Answer

@Collin Boyer I'm a real estate agent in Philadelphia specializing in off-market investment properties. My experience with the MLS has taught me that most listed properties do not meet the profit margin that investors are looking for. Investing in distressed properties is risky. Basic finance teaches that riskier investments should offer higher rewards, but most MLS properties do not offer enough reward to compensate for the risk.

It will be difficult to convince your investors that a $100,000 house that needs $50,000 in rehab is worth the promised $160,000 ARV.

If I were you, I would find an experienced wholesaler in your area... emphasis on "experienced." This wholesaler will be able to find off-market properties and negotiate with the homeowner directly to settle on a price that is acceptable for your investors. Because if the numbers don't make sense to your investors, they'll never buy a property. I'm not saying all MLS properties are overpriced, but they are hard to come by. Good luck!

Sean McDonnell · Answer

One thing you can do to help investors find properties to househack is search for properties listed as single family homes but have a guest suite or in law suite that an investor can rent out. If it is complicated to do on your MLS, just go to Zillow, and type in the Keywords section, type in things like 'Guest suite', 'in law suite' or 'kitchenette' to see if you can find some unique househacking properties.

Jonathan Barr · Answer

I would suggest finding properties for your client and having them work directly with the listing agent.   That way the listing agent has more of a incentive to work with your client.   Just make sure you have listing agreement signed to give you the listing on the back end.   Maybe they can pay some kind of separate fee even through escrow.  All this is legal as long as everything is disclosed.   As long time flipper in LA we usually always went with listing agent even though we were licensed.   They obviously need to have sellers best interest at heart but as their client they will give you more guidance then someone they aren't representing.   Some agents don't feel comfortable double ending since it can result in a conflict of interest.   That's what allowed us to get more offers accepted. Its a unique approach that has worked well over the years.

Victoria Pham · Answer

@Collin Boyer, you can mostly find good deals at anywhere but I agree with some of the comments above that MLS is not the most ideal place to find great investment properties. However, as I said, you can always find a deal that fits with your investor at any place as long as the number makes sense. So, first, let's not worry about where you get the property but find out what your investor wants. Ask him/her the areas they're interested, the purchase price range, the equity return he/she wants to get and the ARV...Best of luck!

Nicole Heasley Beitenman · Answer

They should know their numbers and criteria. For example, my realtor knows I'm looking for 2-3 bedroom houses in specific neighborhoods in a specific price range. I've told her that my purchase costs and rehab need to come out to 65% of the ARV, but I don't expect her to do the math for me. She finds fixer-uppers, she lets me know what she thinks the ARV is, and I give her a green light or red light. It's great to know general principals of investing, but don't let them rely on you for their own due diligence. Otherwise, properties that sit on the MLS longer than average, properties that come back on market after a sale falls through, as-is properties, estate sales, and foreclosures are all good starting points.

How to find deals on the MLS

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