Hello BP family,
I am a new Realtor in Richmond, VA and have always had a strong interest in wholesaling. Since I have access to the CVR MLS here in Richmond, I wanted to know what would be a good approach to use the MLS to find wholesaling deals.
Any advice or guidance to help this newbie realtor/wholesaler get started would be MUCH appreciated.
Thank you again,
I would never suggest looking for wholesale deals on mls (although some may), but you will be able to determine value and see who is executing cash transactions, how much they are paying and what and where they are buying.
@Haider Zaman Welcome to BP. I am also a combo investor/Realtor. I've bought about 30 properties with most of them being on the MLS.
There are SOOOO many ways to find good deals on the MLS. Most good deals are going to be properties that need some amount of work. In your MLS there will probably be some way to do a key-word search in the public remarks or agent only remarks. Try searching for key-words such as: fixer, tlc, danger, motivated, needs work, etc.
Thanks guys for responding. @Bryan L, I have a follow-up question for you. When I find properties in MLS that need work, who do you contact to make an offer? Do you go through the listing agent or go directly to the owner?
I figure the listing agents wouldnt be too enthusiastic about receiving a wholesale offer considering it directly impacts their commission.
Thank you again for your response.
@Haider Zaman You should already know the answers to that, even as a new Realtor.
Try calling the expired listings daily find the motivated.
Note that what Bryan said about there being plenty of good active deals may or may not be true, depending on your location. I've seen areas where you can still find some good deals on the MLS; I've also seen areas where you won't find a good investment EVER on the MLS (at least not these days). It's very location dependent.
But, Paul's point about calling expired is probably the best suggestion...
As for wholesaling deals on the MLS... really not something that I would make an attempt to do with the deed restrictions and also with the fact that properties bought on the MLS in this area most likely will not have as much room even with a cash buyer. HUD homes do not have restrictions, but then again as a person who is beginning I would suggest you partner with someone to get started and to learn as you grow.
Best of luck,
@J Scott - Sometimes they are there...if you know where to look. For example, an REO might be on the MLS that has 2-bedrooms and 1-bath with 1300 sq feet. A LOT of wholesalers and investors will never even know that this deal is even active on the MLS because they focus their search on 3-bed, 2-bath properties. But look at that square footage. That's plenty of room to add a third bedroom. There's several other possible sources for deals on the MLS like this that I call "hidden deals". Right there on the MLS, but off the radar screen of most people.
@Bryan L. we have done two of those this year, I always watch for two bedroom, 1200 sqft or greater to see if we can turn them into a three bedroom. Layout doesnt always work but often enough to make worth checking out.
I have also found that sometimes the listing information is incorrect, where I it is listed as a two, when it is actually a three. At 1200+ sq ft we always check them out if the list price justifies.
Recently had 1450 sq ft listed as a two bedroom, it had tandem bedrooms, little reconfiguration turned it into three.
Our area we can still get deals off mls, although it is tougher than it was a couple years ago. I also wholesale one or two deals a month, to other rehabbers, that we bought off the mls, or auction sites, which are also listed on mls.
I've been targeting deals off the MLS here lately in my market. There's still some deals on there. Did anyone use a different formula when figuring what to offer? I've had a few bank owned accepted, and also a HUD.
Also how do you market once your offer has been accepted, do you still sell it lower than it was listed?
since they are on the MLS, doesn't the agent commission eat into the maybe slim profit already? I am also interested in looking at these "hidden" deals on the MLS, but have wondered about the commission.
Mls is good but a lot of competition, direct marketing is great if your a people person. It all depends on your personality and what you enjoy, it's not always about money.
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