light bulb moment: What makes it MY deal???

Question

So, here's a question that may seem REALLY dumb.. but, here goes!  If the properties I am researching are listed in the MLS and other listing sites, WHAT makes the one I find, and am after, MY deal??  and if they are listed, doesn't that mean that there's something wrong with them, if not why hasn't another investor or wholesaler already scooped it up?!

Jon Holdman · Answer

The deal is "your deal" when you have an accepted contract with the seller.

Wholesaling houses by finding deals on the MLS seems like a very tough way to go.  Anyone can see the property, and can buy if for something close to the listed price.  If you want to wholesale,  you need to do your own marketing and find your own sellers.

Jon Holdman · Answer

If the potential seller is underwater, you will need to negotiate a short sale.  This is where the bank agrees to take less than they're owed.  Those are more painful than regular sales, too, because the banks who have to approve the short make it painful.  As for REOs, they don't want someone else (you, the wholesaler) making money when they are taking a loss.

This is a numbers game.  You have to make hundreds or thousands of contacts with potential sellers in order to get one deal to the closing table.

I don't disagree with Kyle.  Making a deal off the MLS is possible.  But you're going to make a lot of offers to get one of these done, too.

Ibrahim Hughes · Answer

This is the better way to go Nichole. This is how you will build value as a wholesaler. By finding sellers who have not yet listed with a Realtor or (in come cases) even decided they want or need to sell yet. Get them early enough, motivated enough (property priced low enough) and comfortable enough to deal with you and you have successfully increased your value as a wholesaler who with serious buyers want to do business.

Nichole Gabriel · Answer

Awesome, Thank you Jon Holdman!

Nichole Gabriel · Answer

Also, I see outstanding balances on the foreclosure records.. :/  Maybe I'm not getting how that works? Wont the bank want these unpaid balances, or is they now a moot point??

Nichole Gabriel · Answer

Jon Holdman, J  Scott, Ibrahim S, Kyle Weimer!  Thank you so much!  Ok!  Now I know where to place my focus!  So Can I ask a few more questions as I get on with my process.. I have found a few properties that seem to be going into foreclosure, with either auction dates coming up, or auction dates that seem to have passed already??  Do you suggest I try ot find the owners of these properties, or is it already too late for that?  These properties are NOT listed anywhere that I can find...

Kyle Weimer · Answer

It's all about supply and demand. I tend to be in "older" cities with a lot of inventory and a good amount of cash solds going on in the area over the last half year or so.  Find the buyers in these markets and what they are buying, where they are buying, and at what price and deals are there to be made in abundance.

Chuck Redman · Answer

@Kyle Weimer. What do you consider the right market conditions and city?

Kyle Weimer · Answer

I will agree with Jon to an extent. However if you live in the right market condition or put yourself into markets which lend themselves to flipping REO's you can most certainly do it. And do it consistently.

For example, I'm closing my fourth wholesale deal of the year this coming week and they have all been MLS deals that I have gotten for well under list and market price.

Jon may be correct in saying that if you plan to stay in one particular market and do all your deals in that one particular market or city, private sellers may be the better way to go.

However, if you can set your business up to do deals in markets where the conditions are right, farming the MLS and wholesaling those deals can be extremely lucrative.

That being said, I always have letters or postcards going out to home owners, all the while farming the MLS in selected cities. Multiple leads coming in from different marketing streams is obviously the optimal way to approach it, IMHO.

Now go get some deals!!!

J Scott · Answer

Agreed with Jon...

The only way to be successful buying off the MLS is to be able to negotiate better than anyone else who sees the listing on the MLS and makes an offer.  And it's pretty tough to negotiate when there's two agents between you and the seller.

light bulb moment: What makes it MY deal???

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