How do you guys show occupied MLS properties? and what if the first investor doesnt want it and you have to show it to another ? do you submit your offer with a contengency for this?
and IF anyone can comment On this question as well. I'm submitting offers with my realtor she has me using some huge 18 page contract to make offers on MLS properties DO I have to use this? the contract has something that says this contract in not assignable without written permission so I have to put Assignability as a contingency and its sticking out to the sellers if it did not have that part I could just put and or assigns after my name and they wouldnt notice it as much?
:mrgreen: :mrgreen: :mrgreen:
Sounds like you're wholesaling.
Since no real investor will be interested on something off the MLS, it probably doesn't matter much how you get the random people you talk to in the houses, or how you try to manipulate a contract to have it deceitfully allow assignments. These things don't matter because nothing will close under these circumstances.
Find properties that aren't on the MLS, create some value, and these things will not apply.
Sounds like you're wholesaling.
Since no real investor will be interested on something off the MLS, it probably doesn't matter much how you get the random people you talk to in the houses, or how you try to manipulate a contract to have it deceitfully allow assignments. These things don't matter because nothing will close under these circumstances.
Find properties that aren't on the MLS, create some value, and these things will not apply.
Sam, you are thinking and behaving like the realtor. Does the realtor/broker you are working with know that your are not going to buy the property? From what you posted, if I was a broker and know your were a wholesaler... I'd show you the door.
Sam...
First find an agent who understands what youre trying to accomplish...
Second understand that the listing agent is going to have a difficult time explaining a 70 percent offer to the seller after they gave the seller a 100 % price opinion for listing values.
Third understand that the cost of MLS property from an advertising standpoint is expensive.
Fourth.... DONT GIVE UP... Just becasue your method isnt what most of us would do doesnt make it one that wont work for you... Everything will work if you do enough of it...
As for showings when I list a property I dont own on hte MLS I make showings subject to an accepted offer...
Good luck...
Jake said it best... You're trying to "wholesale" homes that are not qualified to be a deal. You need to locate motivated sellers that are willing to give you a big discount for your ability to close fast, pay cash, and buy as-is.
You need to find deals at 65% of the ARV (After repaired value)minus the cost of repairs. And then market the deal to investors at 70% of ARV - repairs. You make the 5% difference.
Wholesaling is HARD WORK and it takes MONEY and HONESTY to be successful.
You should take a look at this thread:The Truth about Wholesaling!
Good luck.
OK wow yes I am Wholesaling and that's my fault for not including that important detail. the thing that I'm amazed at are the outrageous reply's. first to address Jake, boy how ever are you wrong and Any "Real Investor" Would not care were the deal came from as long as it was in his target buying area, price and it being 30% and %50 below FMV. and I'm not manipulating or deceiving anyone here I'm making It well know either way that I'm wholesaling the deal but The contract I am using is very long and makes me repeat this contingency several times and makes people like you think things that ARE NOT TRUE! I am targeting distressed properties that need work and are mostly empty I'm not approaching MR. and MRS. Smith who have a lovely house and trying to scam them I'm targeting motivated sellers rarely will a homeowner occupy a house I'm offering on I ask this question because I want to be ready for whatever comes my way as a newbie wholesaler. I am an experienced Contractor/Investor. and I see you are a Real Estate Legend? nice way to encourage someone trying new things and looking for help! and Cris martin I thank you for you Ignorant rant. You would show me the door? not even close buddy. How dare you try to come at me like I'm anything less than a honest hard working person you couldn't walk 10 feet in my shoes I never deceived anyone in my life I grew up with nothing how dare i try to improve my life. Of course my Realtor knows my intensions I'm an investor as well and will buy some of the deals for my self and pass some along to investor buddies I have looking for good deals. I am not some kind of scam artist here and would appreciate a professional courtesy. treat people the way you wish to be treated! Thank you Michael and Stinson for honest reply's Its people like you who help people trying new things keep their head up. Anyone who is Knowledgeable in wholesaling and has a clue what I'm asking feel free to answer the original question I may Re post with proper wording and title Wholesalers only.
Sam...
I think everyone can have a different approach when answering questions is all. Heck if you catch me off guard I am a true butt head...
As for the assignability issue of your contract.
Most all Realtor Agreements have a few blank line fill ins... I would write onto one of them that Paragraph ???? does not apply... I wouldn’t spell it out... Most agents don’t know the contract well enough to know what you would be referring to.
In all cases unless an agreement says you cant assign you can therefore the need to say or assigns in writing isnt required.
You also could buy as a blind buyer. And you could buy as a trust. Both may make what you’re trying to accomplish accomplishable.
And you could also renegotiate the agreement prior to acceptance by the buyer. Just make certain that your agreement can’t be accepted by your agent.
My main point was that even if you think something off the MLS will be 65% of ARV less repairs, you're still wrong. Reason being, the people with the cash would have already seen it and bought it while you were getting your realtor to send over that 18 page contract.
Regardless, the lack of professionalism and strange choices in punctuation/capitalization would make me delete your email before I started doing any DD on a property you sent me anyway. Maybe others would disagree.
Sam.
Personally I have yet to have a seller take an English exam and pass it and I have bought a lot of property.
And I'm certain some couldn't pass one and I'm also certain I couldn't pass some exams.
At the end of the day I think you'll have an almost impossible time accomplishing the task of wholesaling MLS properties. However you didn't ask that question.
Do keep your head up. These objections are a great test of persistence and personal worth value.
Good hunting
PS. When I buy I don't look at ARV
It's funny how everyone has their own way of doing things. I've done a lot of motivated sellers and yes it does work. I've done HUD wholesale deals and yes they do work. Nothing from REO's though. Either way works I'm sure, just takes time and massive effort to figure out what's working and whats not. Eventually you'll know what you think is right, then go from there. This isn't a easy business otherwise everyone would be doing it. Take care.
Sam,
I tried to wholesale for 8 months before I closed my first deals it was a short sale off the MLS! It is not impossible and I will say that good deals are not found they are created depending on the offer that gets excepted. If a house is sitting on the MLS and it gets no bites it doesn't mean it's bad and just means know one sees the potential you see. I will say if you are trying to wholesale house with families in them then your are going the wrong route. You should really be working with empty homes that are easy to show wholesaling is not about MLS houses it really defeats the purpose of the business. It can be done but it will be a headache trying.
Oh and I really don't think grammar matters in an email.
It's all about the numbers not the spelling! That's ridiculous he not selling million dollar houses to Harvard graduates.
Grammar is one of the main items one should mimic when making a presentation. Passing judgement as to the intelligence of the prospect is the least. I've bought homes, at huge discounts, from convicts to judges. Our job is to buy housing. It's not to ridicule or belittle a prospect and certainly if we dismiss an opportunity based upon commas, periods, and "e before i" who is the one showing a lack of intelligence?
Real estate investing is and most certly must be blind of discriminations. It's the purest profession. It isn't based on weight, sex, religion, color, formal education or age. It's only requirement is desire.
I couldn't correct my grammar using my iPhone. Too funny. The word was certainly
Michael,
I'm not passing judgment on a prospect. A prospect could potentially sell me a house. This guy couldn't, because he doesn't have anything compelling to sell. This is a time saver for me- sometimes I'll be wrong, but more often I'll be right. I never said anyone else had to use the same shortcut.
Sam-
The lesson for you to take from this thread is that you CAN successfully wholesale MLS listings and they can be profitable. However, in some markets, like in California for instance, there is high demand for distressed properties so your less likely to find candidates in the MLS. You should look to your own market and talk with local investors to get their opinion. In my experience, REO's are not worth going after unless you have the funds to close yourself. It is a monumental task to assign REO's.
The other lesson is that wholesaling MLS properties is a harder road to travel because you will find many listing agents uncooperative. Listing agents have a fiduciary responsibility to the seller and they generally will be skeptical of a wholesaler.
Personally, I believe your time is better spent marketing to FSBO's. However, if your going to tackle the MLS database, then you should focus on estate sales where the property needs a major rehab. This is because 99% of retail buyer's will not be interested in a major project and it will eventually sell to an investor. So, why not you?
I'm not limiting myself to any one strategy. I have bandit signs up started direct mailing and have a Realtor helping me tap into the MLS. thanks for the comments but there is no need to explain anything thing to Jake he is checking people's spelling in forums laughable. I mean I'm not writing an essay here its a chat in a forum he may have OCD. Reality is going to smack him in the face one day. whats funny is he believes he understands wholesaling and the properly spelled crap hes talking about is meaningless. imagine conducting business only dealing with people you like or that are like you. this world has so many different types of people that we can learn so many things from. its amazing how someone so "smart" can be so stupid and shallow. I have bought and sold real estate I also have rentals not bad for a guy who cant spell. I do thank you Scott And Michael. you're right The only qualification is the desire to do it and I have that I'm a humble person and I'm not afraid to sound stupid or ask questions to get to the next level.
No good Realtor is going to allow this for a few reasons, the main being they know they will not get paid unless you can find a buyer. This is also a blaring sign that the wholesaler has no money so they wont take you seriously. You have to find deals in other areas to do this. Banks are starting to require larger downpayments to avoid this kind of things as well. Mass market distressed sellers and fsbos. Its frustrating but the only way you can lock up a deal if you have no cash. At the same time I'd partner with an experienced investor to raise money. If you have no deals under your belt nobody will lend you the money. But by partnering with an experienced investor their experience is the leverage needed for you. We do this in our business with our partners so it can be done.
Good luck to you!
Sam, this is a people business and this is a forum with people having many different opinions. Though I understand your reaction to some of the comments, to lash back out at individuals who don't think your approach is good is not going to help. You're getting all stirred up and then attacking them. No matter how much you think you are justified in doing so, you are lowering yourself to a "street level" communication that is not going to help you gain advice.
One time another BP guy made a comment that shook me up. I e-mailed him and discussed it there. I did not feel that a public forum was the place to exchange feelings. He appreciated that gesture.
All in all, it appears that the group is telling you that the MLS approach is a difficult one, yet not without possibilities. I would suggest focusing on the subject matter and not getting so personal with anyone - even if you feel that they were to you. Take the high road; this is a people business.
You need to get permission to show the property. The contract should require reasonable allowance for you to do your DD. If you have been upfront with everyone, let the sellers know that your end buyers need to come and look at the home. If you haven't (not recommended), you can tell the homeowners that you have contractors coming by to look. By law, you do not have to use the state contract to sell/buy a property (someone correct me if I'm wrong), but if you are going through the MLS, the brokers will probably require it.
I tend to agree. The properties on the MLS have generally already been passed over. The first thing I do with a wholesale "deal" is look it up on the MLS. If it's there, I usually end my DD. Often, the list price is well below the price my "wholesaler" is trying to sell me on.
This is true. Unfortunately, these deals are not found/made on the MLS. At least in my experience.
I would really love some elaboration here. If you have figured out a way to buy properties (and make a profit) with out needing to perform this important piece of DD, I'd pay for the information.
There is a very important distinction between everyone else not seeing value where it is, and you seeing value where it is not. When you are buy a long-listed property on the MLS, you are telling the world that you can do what everyone else cannot. Are you ready for that as an investor? The more important note here (for a wholesaler), is that if none of the experienced investors scouring the MLS have thought it was worth it, will your buyers list? Chances are, there are more investors on the MLS than on your buyers list.
Grammar and the ability to communicate well are vital to any business. Why would you want to make it any more difficult for your buyers/sellers/whomever to understand you than is necessary? You will only lose business this way.
Only my opinion, but I feel that the complete lack of grammar and punctuation shows little or no courtesy for the audience to which it is addressed. It comes off as a jumble of words that is difficult to read.
Regardless, if I understand the above quoted sentence correctly, you are an experienced investor. Why, then, are you asking the most basic questions about contracts? Jake simply gave you a piece of advice, for which I would be appreciative. If you are experienced, then perhaps you should show Jake how wrong he is with proof of your deals that you have wholesaled off the MLS.
This is what happens when written words and ideas get misconstrued and taken out of context. I understand how Sam may feel considering he's coming to the forum for advice and getting his cohones handed to him. However, I'm from the REI school where MLS listings are like the black plague of investing. Ive been told since '05 to always stay away from MLS listings so I can't help you in that arena Sam.
One rehab buyer who I know , when I mentioned a property was on MLS (even though we got the seller down to the price he wanted to buy it at) got a look in his eye, spit on the ground and said it's with an F'n realtor!
He said Realtors just get in the way and F' up the deal. Don't shoot me....I'm just telling you what he told me...LOL. So I kind of first hand understand the sentiment associated with MLS deals from a wholesaler's standpoint. Not popular.
I'd like that too.
Hi Sam,
Just stumbled upon this thread... If you're still reading, I was just wondering if you've had any success wholesaling MLS props? Bc I do see plenty in my area that seem to fit what most investors feel is a decent deal.. especially on the rental side. My area may be unique though. Most of the big boys are concentrating on city props when they could really get better cashflows on some of the places in the burbs where the values have dropped sharply but rental rates have not. THe problem is, as some have mentioned, most of those are bank owned. I've seen guys who have closed on REO's that they've gotten off the MLS for a real good #, then selling to an end buyer. Most as double closes. In that case, you (the wholesaler) can add a little value to a deal by way of negotiating a good #, getting solid comps, providing a solid rehab quote (it helps if you have a rehab crew dedicated to you and who you can stand behind). I've also seen guys do minor rehab (for a rental), put a tenant in there on a lease and sell that turnkey package to another investor. That's definitely adding value if the #s are still good after all that. Worth a shot. Hope kicking butt. Drew
Sam Tomassi, I'd be interested in learning also whether you found success on the MLS. this was an interesting thread with opposing views.