I keep hearing that wholesaling using Agents is unsuccessful. From my personal experience this is true so far BUT...I don't want to give up. I'm in Los Angeles county, CA, can anyone offer advice on what I can do to make this work?
Main problem: If my offer is too low, sellers reject it, if my offer matches the asking price then my investors reject the property. I have 1 Agent really sticking by my side on this so I'd like to make this work
I think there's two strategies here that you could implement.
Really scrape the MLS with keyword searches, DOM, etc. in order to find out which properties may be worth making an under market offer on with a chance at getting accepted. Then, only offer on these properties. This strategy would definitely benefit your Realtor more.
Or, start finding properties that fit your buyers criteria and then blast a bunch of offers out and see if any stick. This might frustrate your Realtor as they will get negative feedback and have to do a lot of paperwork. But, some Realtor's don't mind.
I have personally been the Realtor for a couple of wholesalers in my area who were successful at wholesaling MLS properties.
thank you for responding. How do I determine which properties would be worth it? Distressed ones and maybe too many days on market?
You could have the realtor search the Realtor Remarks in the MLS for keywords like "fixer", "needs works", "TLC", "handy man special" etc then send the listings to you via e-mail.
Hey @Nicole Diaz I am an agent and flipper in LA county and this year it has been extremely difficult to find deals on the MLS. I put 100% of the buying commission back into the deal, and still rarely find deals with numbers that work. So I would think it would be very difficult to get an offer accepted with $0 commission back (since it'll go to ur agent) and still have enough room to wholesale it. But maybe I'm just being negative cuz i'm in a bit of a dry-spell :)
@Wayne Woodson thanks, we'll give it a try! @William Larsen I'm using decent numbers, my investors love them but I've done what you're saying and it does give alot of wiggle room. But 60% or so of my past offers have ended up back on the mls weeks later. So, I believe sellers are really hurting and are determined to stick to their price.
I am a new investor myself, and in my studies I have read that a few years ago, most investors say that only 1 in 20 offers they put in on MLS properties would be accepted . Fast forward to today with the popularity of house flipping TV shows and tons of new investors hitting the scene, it seems like I am reading that the number is more like 1 in 50 now.I think it just comes down to being a numbers game and submitting as many offers as you can.
@Cornelius Charles thank you.
Join the Largest Real Estate Investing Community
Basic membership is free, forever.