Originally posted by @Doug Haisten :

@Nick C. @Mark Fries

Current property I am looking at from MLS:

Cash Flow (after all the bills and expenses paid like vaca, repairs(future), CAP Ex, Mgmt) $183 pm. Based on rental information from a property manager)

COC 12.79%

Purchase Price $56,000 (includes my fee). Comps about $65K. (from realtor and my own calcs)

Repairs $2000 (but actually move in ready)

Realtor fee paid by seller

this is what a few companies in Texas do  and I could never understand who would pay them a premium to buy something that is listed. 

just put a back up offer in.. or beat them to the MLS.. its a very weird way to try to make money in my mind..

@Doug Haisten

This is what i was doing, trying to wholesale a property that is Listed on the MLS, i can tell you from my experience it doesn't work for me & i had to realize that for myself, like right now i actually have a property under contract that was listed on Zillow, the problem is while i finally got a property listed on the MLS its not valuable to many buyers i got in contact with, this Property is A Rental Property with no Mortgage Free & Clear Good Tenants & the seller was looking for $85,000 made me feel like im doing a whole lot for nothing just to get an assignment fee. Basically a Learning experience for myself.

et al:

All very good points and I understand what you are saying. What is perplexing is why BP puts on webinars almost every week saying to go to Realtor.com (MLS) to look for deals, some to buy for myself and some to wholesale. True, an investor could buy a deal himself (from the MLS) but not if I find it first. @Brandon Turner , who usually gives the webinar, states 90% of what I look at won't be a deal. The deal is in the income and return yes?

@Doug Haisten there is two problems with your plan:

1. Purchase contracts on the MLS typically use standard contracts which will likely require you to have proof of financing or funds. Do you plan to actually buy the properties?

2. Why wouldn't a landlord just buy the property off the MLS? I don't see what value you bring. Landlords are shopping the same source you are.

As far as what you hear on BP, not everything that is taught is real world. They tell you to make hundreds of offers too. Not only is it a waste of time, but it destroys your reputation. What realtor will take someone seriously who is just an inexperienced low baller?

Your best bet for wholesaling is finding off market deals, either through driving for dollars, mailers, referrals or website. Then use a wholesaler contract to lock up the deal.

@Joe Splitrock In answer to #1, yes I will need to get proof of funds and may have to do a double close. In my area title companies don't want (read won't) do the typical assignments or double closing anyway (use B-C funds to pay for the A-B purchase). In any deal practically I have to provide POF and funds to pay for the deal anyway. #2, everyone asks that. The landlord could but that can be said for any deal, why doesn't the investor buy from the owner. In this case whether I find the deal by direct mail, driving for dollars, or a web site it is the one that puts in the effort that finds the deal. I am learning most people aren't looking at the MLS. Not all the properties of course are deals. I have sent out thousands of mailers too unknown unseen properties (bought a list) and only get a few responses and even fewer deals. I have 500-600 properties I found D4$ and sent mailers to and get 2-3 calls a month. The investor could do (and probably is doing) these things too.

Originally posted by @Doug Haisten :

@Joe Splitrock In answer to #1, yes I will need to get proof of funds and may have to do a double close. In my area title companies don't want (read won't) do the typical assignments or double closing anyway (use B-C funds to pay for the A-B purchase). In any deal practically I have to provide POF and funds to pay for the deal anyway. #2, everyone asks that. The landlord could but that can be said for any deal, why doesn't the investor buy from the owner. In this case whether I find the deal by direct mail, driving for dollars, or a web site it is the one that puts in the effort that finds the deal. I am learning most people aren't looking at the MLS. Not all the properties of course are deals. I have sent out thousands of mailers too unknown unseen properties (bought a list) and only get a few responses and even fewer deals. I have 500-600 properties I found D4$ and sent mailers to and get 2-3 calls a month. The investor could do (and probably is doing) these things too.

There is a reason that every asks number 2. It is because wholesaling the MLS is not the best business model.

There is a massive difference between shopping deals on the MLS and versus hunting down deals using mailers, door knocking or a website. At no cost and minimal time commitment, I can shop deals on the MLS. It is not just as likely that investors will use other methods, compared to just the MLS. If an investor is using all these methods, they are probably finding their own deals and don't need you at all.

@Doug Haisten I think the real question here is WHY are the buy and hold investors not just buying off the MLS in the first place? What do they have running in their numbers that you may not, hence not making it such a great deal?

@Joe Splitrock Would be effective if Doug sifted the results down till he could find deep enough discount, say he has to go through a thousand but eventually he finds one he can contract for 65-70% of value. It will be very difficult however he will have to work very hard to find the off market deal as Well. Do you think one in a thousand exists?

@Doug Haisten Sounds like you are putting in the hard work, I question why some are saying you are wasting your time as what you say is true, basically there is huge competition in every method mentioned on the thread thus far.

don't get me wrong there are deal from MLS. It is rare though. Number has to work. Sometimes to get lucky. But remember. End buyer needs spread. We as the investor. Need free equity on top of decent cash flow to call it a deal.