How to find Listed Deals

15 Replies

Every time i put a house under contract that is listed it never seems to be a good deal. Are all MLS listing excluding wholesalers? Buyers will say i saw this on MLS? do they only want off market properties?

MLS listing are put there by realtors. Their job is to get the maximum price for their client, the seller. This usually means they are priced at market value or higher. Investors of course cannot pay market price and expect to make a profit. The best deals on the MLS are bank owned or foreclosed properties. I have gotten good deals by offering low prices with great terms, such as As-Is, Cash, No contingencies. Contingencies and "subject to" are safety nets for you, but to a bank it means "not a sure thing." These offers are not for the faint at heart. If I know I have to do a complete rehab, why would I put an contingency for a home inspection? I already know the house is a basket case. I hope that helps.

They don't see any value in what you are doing if you find it in MLS- what are you doing that they or a realtor can't at not cost to them?

If you bring an investor a property for half what it was listed for, then you've got something going and can create a margin and still provide value for your services. If you bring me a property that was listed in the MLS in my area, I've almost surely already seen it. If I'm looking to buy something I look daily and make offers on everything I think might work.

Its really annoying when a wholesaler actually offers it to me above the listing price...ugh.

If you want to do it that way, just get a realtor license and present those deals for the commission. 

There's actually an outfit around here that does a lot of wholesale deals out of MLS, but they've got their numbers straight. They do a lot of proposals for buying small houses in high dollar areas and adding square footage and such, so they bring value in their analysis and bring them at under listing price, including their fees.

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Yes, it helps alot! Thankyou! I need to attract motivated sellers. Any tips on who i should send these yellow letters to? Landlords, Homeowners? And how many and often i need to send?

I want to wholesale REOs off the mls since I'm an agent and have access to the MLS @Anthony Dooley.

Do the banks automatically offer some sort of inspection period? My only concern as a newbie wholesaler is losing my EMD. Any other tips wholesaling REOs

@Brittany Thompson

Finding motivated sellers: When I do direct mailing campaigns here in DFW (Texas), I look for absentee landlords or homeowners. This can be found via tax rolls, or on your specific county's appraisal district wesbite. I will pick a street or neighborhood that I know I want to buy a house in, then search each specific address looking to see where the owner lives, and if they are out of state I send them a letter.

I will send once to twice a month to the same addresses, so as to not bombard them with what they may perceive as 'junk mail'. Also make sure your letters are hand written, this may be time consuming but it is well worth it. People may be more likely to respond to a hand written letter rather than something that is mass produced.

@Brittany Thompson  

There is tons of information and hundreds of threads about direct mail marketing and yellow letters.  Use the search box in the upper right-hand corner.  You'll find out more than you ever wanted to know.

Also, search for specific posts from Jerry Puckett and Mike Quarles.  Mike Q owns "YellowLetters.com", and Jerry has a very successful direct mail business here in the Dallas/Ft Worth area.  I know Mike did any entire podcast.

@Rich Darragh  gave you the easiest types of owners to target.  If the information isn't available via county tax offices in Georgia, listsource.com is your best option.

@Anthony Dooley I always add the contingency for a home and termite/moisture inspection for informational purposes only at my expense. I have seen too many investors that get stuck with properties that are infested with termites, or rotted, missing pillars, floor joist, not to mention foundation issues etc... Now if you are just buying the dirt that is one thing, but if you are going to rehab the property, even though you may have to pay a little more for it, it may be worth your wild. The last property I bought I did forgo the temite/moisture inspection because the home inspection turned out fine, and the inspector did not see any damages. I will also tell you that I will low ball a property in a second at when I view the property that I see something that is obvious, such is a foundation issue, asbestos tile and such. Also, depends if the property is on a flood plain, and the FEMA rating. Many investors run from these properties because of the extra expense for flood insurance. I purchase the flood insurance for the property even though I own the property outright, and it is not required. These properties turn out to be very, very good deals. However to flip and sale, I would not do it, unless the property had some type of water view that was enticing to a buyer.

@Darrell Shepherd   I seem to spend more time looking for properties than anything else.  Maybe that is why I joined this forum, so I could get my mind away from looking so often.  I don't think the average investor knows were to look for all of the deals.  I joined a list a few years back promising to send me a list with all of the foreclosures, I find twice as many by doing the work myself, and bookmarking the sites, and get much more information about the property.   Wow, I must scour a hundred web sites a day it seems.  The biggest problem I have is getting an agent to show me a property before I submit an offer on it.  I think I have calluses on my butt. It is a hard job, but someone has to do it!!!

Brittany,

The MLS is still a great source for deals. Keep farming there. One key that I've been taught is to go where the action is. Where investors (CASH) are buying. Then figure out what they pay on average. Build the relationships and find out what they want. Go to the best source, MLS, and make offers based on what buyers pay less your fee.

If a buyer balks because you found a deal on the MLS before they did move on to the next one who appreciate your service.

GB,
Kevin

Originally posted by @Brittany Thompson:

Question???? Please help!!! Have a 4/2 sfr. 1423 sqft? Comps are 45-60,000! But he owes 10,000 back taxes. What should my Mao be? repairs 5,000

Brittany...you're going to have to firm up the comps, before you can get to your MAO. Also, how do you know that's what the repairs are? Did the seller tell you that? I'm not a cynic, but sellers generally oversell the value of their properties and under sell the problems. You have to tour the property. Take pictures, get rough estimates, then add at least 20% on top of that.

Also, what kind of equity does the seller have? That's going to be a huge factor in whether this deal is a deal, even if you know your MAO.

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Originally posted by @Brittany Thompson:

Question???? Please help!!! Have a 4/2 sfr. 1423 sqft? Comps are 45-60,000! But he owes 10,000 back taxes. What should my Mao be? repairs 5,000

If your buyers are planning fix the house up to the what people are willing to pay top dollar for in your area than take the comparables of houses that are renovated to that standard and take off 10 to 15 percent (just to make sure that it will be priced better than the competition after renovations are completed) to arrive at your ARV.

Given the limited amount of information I have I can't see myself paying more than 18,000 for this.

Sorry I typed the above reply fast, 10 to 15 percent is a little much actually. What I meant to say is that take enough off of the ARV so that buyers will not be able to call your evaluation into question.

It all depends on your buyers' criteria. I know of some successful wholesalers who thought outside of the box and exclusively worked with international buyers even with MLS listed properties. Best of luck!