Wholesaling MLS Properties

15 Replies

Originally posted by @Sandy Weed :

Does anyone in the group successfully wholesale MLS properties? Any tips and advise is appreciated. I am a licensed realtor in NJ.

Thanks 

 Do you know what a "net Listing is"?

Not many trying to do wholesale deals hold a license, most are beginners.

As a licensee, being the "expert in the room" dealing with the public you have some issues even dealing for yourself. 

IMO, Realtors would do better listing properties for a flat fee, who says the fee has to be a discount fee or under some price, so long as it's reasonable for the pain in dealing with a property that is distressed or not marketable? 

Search the wholesale forums, plenty to read. 

If you're looking for buyers, you can find them at the courthouse. :)

@Sandy Weed are you considering wholesaling yourself?I think there would be a conflict when yo go to a homeowner as a Realtor and try and get them to agree to put their home under agreement with you with the intention of getting a higher selling price. As a Realtor your first job is to get the property sold for the current market value so you're basically saying that you want to tie it up for below market value and then make a profit. Just my thoughts. 

Originally posted by @Bill Gulley :
Originally posted by @Sandy Weed:

If you're looking for buyers, you can find them at the courthouse. :)

I HAVE A QUESTION ABOUT FINDING BUYERS AT THE COURTHOUSE, HOW DO YOU FIND BUYERS THIS WAY

Originally posted by @Amanda Keller:
Originally posted by @Bill Gulley:
Originally posted by @Sandy Weed:

If you're looking for buyers, you can find them at the courthouse. :)

I HAVE A QUESTION ABOUT FINDING BUYERS AT THE COURTHOUSE, HOW DO YOU FIND BUYERS THIS WAY

 WHY ARE YOU SCREAMING?

Recorder's office, deeds filed to grantees without a mortgage lien are cash buyers. 

Grantees that are a business entity buying homes are going to be landlords.

Grantees names who show up several times in the Assessor's Records are investors.

Grantees that show up having more than 2 properties even if there is a mortgage lien, will probably be investor/buyers. 

Grantees who show up as Grantors on the same property are flippers.

Deeds of Trusts filed with the same names popping up are also buyers, lenders that are not known institutions are private or hard money lenders. 

How do you know if the property is sold is a residence? Usually the legal description tells you, a Lot and Block description in a named subdivision is usually a residence. Lot 17, Block 4 of Sunset Subdivision according to the recorded plat thereof; is probably a house. 

If it's a "Meets and Bounds" description, it's in a more rural area, those will begin at a marker to a point of beginning, thence giving directions and ending at the point of beginning.

Some title companies have a legal news type publication, closings done the past week, start collecting those and you can see who is active, buying, selling or lending. The Recorder's Office may have a similar listing.  

Learn your courthouse and the land records system, how to read a legal description, who grantors and grantees are in deeds, if you don't know this stuff you can't know real estate. :)

I think everyone has misread the question. I am looking to pick the brain of someone who wholesales properties that are listed on the MLS. I mentioned that I am licensed because I figured most people would recommend working with an investor friend realtor etc and that step would be unnecessary for me. I am not trying to wholesale off market properties and list them on the MLS

@Amanda Keller

MLS Properties are not wholesale deals.

Who would any seller on the MLS take 70% of ARV less repairs?

MLS are retail deals. Meaning 90 to 100% of comps.

FYI All caps is SCREAMING.

PLEASE DONT SCREAM.

Originally posted by @Sandy Weed :

Does anyone in the group successfully wholesale MLS properties? Any tips and advise is appreciated. I am a licensed realtor in NJ.

Thanks 

I've done it in the past when there were a ton of REO deals in the MLS. I'm not a big fan of it now. To do it successfully, you have to submit a ton of offers. Also, be in position to actually close on the deal. Some rehabbers don't like buying MLS deals from wholesalers. Others don't care as long as the numbers work.

@Sandy Weed

How long have you been a licensee? 

I suggest you talk to your broker s/he will have something to say about how you conduct real estate transactions, even for yourself, they are still responsible for what you might do.

There is only one Realtor wholesaler on BP I'm aware of and that brain isn't one to be picking, IMO.

A net listing is not just a legal matter, it's an ethical matter as well. :)  

IMO, I wouldnt try it. 

The whole point of wholesale of any industry is to sell in volume, and sell at a substantial discount, which leaves margin for others to profit, thus building a distributor model.

The problem with that and real estate, and the MLS system, is MLS tries to get the seller the highest value possible, which contradicts the core concept of wholesale.

I think the only way this would work is with banks, and they will probably want the whole saler, and the agent to be one in the same for their convenience, which you have, which is advantageous to you. 

Stop in at a local bank, and ask. Worst they say is no.

Logan, banks don't sell to wholesalers, they don't event want their buyer/borrowers involved in wholesale deals unless they are fix and flip guys on the commercial side. 

Asking a bank if you can wholesale their REOs would get you laughed at. Besides, they are required to list them, can't cut side deals with a bank. :)

@Sandy Weed , How is a Wholesaler who already knows how to pick the eyes out of the MLS going to help you? You might be better off trying to find Wholesalers who are good at finding off-market deals but are having trouble finding an Investor-friendly Realtor ie. re-word your post, or review your strategy!?...

Put offers on everything! Eventually you will get a couple. Being the first offer in always helps. I wholesale at least10 a year from properties on MLS. It's really nice when you can wholesale to a client for a fee, then realist for a commission. 👍

MLS is great source for all properties that are for sale , you need to make low ball offers every day like 65% minus repairs and see what could be accepted, right .

submitting 20,30 offers daily is big task and must be automated somehow .

if you would submit 100 ridiculous offers you might get one accepted which is not bad , but you need this machine first and system that produce accurate offers based on ARV, estimated repairs or upgrade based on square feet.

Make sure your contract is solid , contingent upon your funder's acceptance, and contractor's estimated cost of repairs . so if you could not find a buyer/funder or you do not like what the contractor estimated cost of repairs you are not obligated to buy, also 30-60 days to close .