I hear a lot about how it's important to get agents to look for deals for you. Is this all off the MLS? And if so, is it feasible for an agent to get a wholesaler a deal cheap enough to wholesale it? Do they buy it with cash or assign or double close a contract off the MLS when wholesaling? And, is this the main way wholesalers get deals or is it not even a way to get deals and the MLS is only for other types of investors? What are the other best methods, is direct mail, websites, etc. more lucrative than trying to find deals as a wholesaler off the MLS?
The MLS isn't a good place to look for a wholesale deal. The first thing your end buyer will do is Google the property you're trying to sell. The next thing they're going to do is ask you why they should pay $5k, or more, for a property they could easily buy without you. You should focus on finding off market deals. Go to the learn section of this site and start doing some research. Good luck!
@Jonathan Friedman Using agents to wholesale a deal is going to be a fruitlless endeavor. However if you want to flip a property, having relationships with agents is quite important. Agents have a huge marketing campaign set up, often that covers a certain geographical area (a farm.). Agents often are approached by sellers in their farm to sell a property that we may feel is "unsellable." So what do we do with a house we cant sell on the open market? We bring it to our investor clients to see if they want to flip it. Everyone wins in this situation. The begining seller gets rid of a property they can not sell on the open market....the agent will typically get two transactions out of it,..selling to the flipper, then selling it for the flipper after they are done rehabbing it, and the flipper gets to make a profit on the flip...and has done this flip without spending a dime on marketing to acquire the property.
We actually have an agent in my office who does flips. He does not do any business as an agent, but rather just essentially offers each agent the opportunity to do two transactions by bringing him deals. This is one of the smartest strategies Ive ever run into.
Wholesaling IS marketing. It's about going directly to home sellers with your message and buying directly from them, off-market. My RE agent partner is very valuable to me, but I find her more listings than she can find me deals - simply because of how the RE market works.
Our top three ways to find motivated sellers are:
1) Direct mail - to absentees, etc.
2) AdWords (Google Search)
3) Billboards & other outdoor signage
Wish you the best!
Great posts above,thanks guys, as mentioned above avoid mls but you need to build a relationship with an agent to help you evaluate a property and get a more accurate ARV. If you are starting out with limited funds try posting a few bandit signs you can go online to sites like freebanditsigns.com and get them at a good low price especially if you get blank ones and write on them your self(sometimes hand written signs are less intimidating than professional ones) place ads like crazy any where you can craigslist back page ect. scour these ad sites and try to find a possible good deal.
Robert Kiosayki had a good note in Rich Dad Poor Dad.... "You see with you mind what others miss with their eyes".
Thanks everyone for the help, that's some great information.