My entry strategy into REI is leaning towards wholesaling deals to raise some capital so that I can show lenders that I have some skin in the game and have done a few assignment deals. My question is will it be too late to find wholesale deals in the MLS or would I have to find a motivated seller before they find an agent to list? Im thinking I would have to find a FSBO posted in front of a home and call the owner.
Hey Lamont. Usually once a deal hits the MLS listings, it is too late to wholesale them because the Seller already signed an agreement with the realtor to list the property for a fee. Most of those contracts are 90 to 180 days. A few CHEAP and EASY ways to get your foot in the door is BANDIT signs and local FREE ads on like craigslist, offferup, facebook or even the newspaper. You have to let people know you are an investor and wholesaler in order for them to utilize your skills. Keep at it, every experience is a lesson, every lesson brings new knowledge, and new knowledge brings New Oppurtunties~!
In the game of wholesaling you'll need to be first in reaching the seller. To do this you must have a system in place in order to succeed. That system is called marketing. Your marketing system must be attractive to the seller where as he's motivated to sell to you. So what's needed in the system to make your marketing work? I went to vestaprint to help me with marketing. Business cards, post cards, door hangers, and even a website. Now see that wasn't my attention to get a website but that goes to the credit of vestaprint, it was made so attractive that I was what...motivated to get one.
I'm new so take this for what it is worth: If you could just hop on the MLS and piggy back deals everyone would do it because it would be easy. Real wholesaling = Marketing from a lead perspective and that's why many people want to do it, but never do. Call me nutty but if you can get out there and find great deals you will be able to find buyers in this market. I am about 90 1 hour Pod Casts in to my Journey with BP and recommend you do the same. It is one hell of an education.
Great answers above. In general, there is NO opportunity to wholesale from the MLS.
Get out there and beat the bushes to find MOTIVATED SELLERS that have not listed their houses.
In this business, we're looking for DISTRESSED PROPERTIES that in many cases can't be sold on the retail market because the houses won't pass inspection required for buyer financing. Most the houses we buy as investors are "off market" deals and as the others said, we find those via marketing/advertising directly to homeowners.
I like what @Matthew Forbes said >> Real wholesaling = Marketing
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