Wholesaling on the MLS

17 Replies

Originally posted by @Jay Hinrichs :
you dont wholesale MLS properties..  

 Jay is an old timer, but even old timers are right (sometimes).

Is it possible to wholesale on MLS? I don't know, don't care.

The answer is don't.

As a wholesaler the priority is your seller. They need to be happy, informed and know what to expect and they need to know the risks of choosing the wholesale route. Secondly, you have a responsibility to your buyer. You need to make sure the buyer has everything they need that is expected from you.

To the buyer, your responsibility is finding off-market deals with enough meat left on the bone for everyone to make money.

Usually... per definition MLS deals are where sellers are that want market value for their house (yes I said usually).

It is usually a waste of time for everyone involved when you go the MLS route.

Also you will lose the credibility with your buyer. 

Wholesalers are lazy (sorry wholesalers), but the sheer majority of you are lazy and useless. Only a select few wholesalers do things right. Know this.. it is OK to realize you are lazy and useless... why? Because now you know why it is you are not successful. All you have to do is change that and you are on the good path to become successful. So all you have to do is to be useful and work hard (opposite of lazy and useless right?)

So here is why I say lazy and useless. MLS... NO! Bad wholesaler BAD!

DO the legwork, don't be lazy, find off market deals.. OFF MARKET deals.

Now the useless portion:

If you find "deals" that are not deals at all... you are useless to the buyer. If you find "deals" that the buyer themselves can find, you are useless to them.

So again, don't be lazy and/or useless.

Become the king of your mountain and dominate your space by being awesome... just like me, and maybe (MAYBE) Jay here!

@Natalie Mendoza I am going to give you a little different perspective then the above. You can't avoid looking like a Newbie. Anyone with the experience someone Like I, @Jay Hinrichs , or @Jerryll Noorden has will know within less than a minute that you are new.

Instead I suggest you let then know you are new and work from that perspective. You will get more respect by being honest then by trying to pretend you are more experienced then you are. 

To follow up on what was said above, now is a terrible time to find deals on the MLS if you want to wholesale. The competition is fierce. Every deal gets looked at by lots of investors. It is possible but it is tough.

Most good wholesale deal are found off market.  There are several marketing experts here on BP like Jerryll to learn how to do that. Do a search on how to find deals. 

@Jerryll Noorden I watched some of Jerry Norton videos on YouTube where he goes on Redfin and filters for fixer-uppers only where the numbers would work for wholesaling and makes offers. And I wanted to try it. But what would be your advice on the the best way of wholesaling. Always looking to learn. 

Originally posted by @Natalie Mendoza :

@Jerryll Noorden I watched some of Jerry Norton videos on YouTube where he goes on Redfin and filters for fixer-uppers only where the numbers would work for wholesaling and makes offers. And I wanted to try it. But what would be your advice on the the best way of wholesaling. Always looking to learn. 

 While the mighty gurus spend HOURS and HOURS and HOURS calling scanning, analyzing looking cursing and being a guru of tremendous proportions (bless their lil heart), we smart people  work smarter, not harder.

Look, these guys don't know any better. NONE of them. And here is the proof... if you could choose this:

where ALL the leads are highly motivated and 100% completely free, where I don't lift a finger, all automatic on demand while I eat sleep or poop leads flood into my inbox..

or scanning the mls and calling and sending mailers, and skip tracing mailers, like all the famous and known people do...

which one would you choose?

Exactly. I made up a saying which I think should be acknowledged. 

Ready?

Not because 13 clowns agree on something does it mean that what they agree on is right!

Now seriously think about it for a sec.

In which position would you rather be? Mine, or his?

Mine right?

OK now lets ask him.. do you rather have my situation or your own where you scan mls? He himself would say he would rather have my system.

So in other words, they friggin don't know crap! They say and do what EVERY STINKIN ELSE is saying or doing, and a select few like me, sit back giggle and say "you friggin dope, you are misleading THOUSANDS and thousands of people into doing it completely wrong".

But you know what?

Here is how people work "if you are famous, you are doing everything right".

Yeah OK. 

No disrespect to anyone, I just don't respect entertain, nor tolerate ignorance or stupidity in any shape or form. Ignorance is not an excuse!

My advice... 

Where do you go for help when you need to know how to build a fence, how to plant watermelon, how to build a spaceship... INTERNET!!

EVERYONE their mom and their dogs flock to internet for everything.

Dominate internet and you dominate the world. There is a reason my name changed from Jerryll to MSOOTKAUG (My Supreme Overlord Of The Known And Unknown Galaxy). Even Mindy calls me that.  (or at least she should).

Dominate internet with a credible website and see what happens. He/she who has got cash is king. He who has the leads is a friggin Deity.

I think this was clear enough yes?

:D

Hi Natalie,

Let me add my 2 cents. There are ways to find off market properties where the only money you spend is on gas and wear and tearon your car- drive for $. Look around the towns you want to wholesale in, jot down addresses of properties that look to be in disrepair and or vacant. Look up owner info on a source such as beenverified which is $20 a month. And call the homeowner and ask them if they want a cash offer for their property. It DOES NOT MEAN you have to come up with the cash, you will assign your interest in the property to an end buyer who will close on the deal. Your seller will get paid. You will get paid and your end buyer will get a house to reno and flip for a bigger profit. The GOLDEN RULE IS buy a property at 70% of after repair value- repairs. Then sell it at 80% ARV- repairs. You will have helped the homeowner sove a problem, received some money for doing so, and left meat on the bone for the end buyer.

Another way to find sellers in need of help, is to buy a list.  I have been using Listsource. I am buying lists such as foreclosure and distressed property lists. Usually the seller will be very motivated  to sell. Foreclosures  can absolutely  ruin a person's credit! They won't be able to buy or rent anywhere with a foreclosure on their credit. 

Finally, join a local Rei group and find someone more experienced to do a joint venture. Look up Meetup.com and search under Real estate. You will find a whole market there-including end buyers.


Hope that helps.

Originally posted by @Carol Zeroual :

Hi Natalie,

Let me add my 2 cents. There are ways to find off market properties where the only money you spend is on gas and wear and tearon your car- drive for $. Look around the towns you want to wholesale in, jot down addresses of properties that look to be in disrepair and or vacant. Look up owner info on a source such as beenverified which is $20 a month. And call the homeowner and ask them if they want a cash offer for their property. It DOES NOT MEAN you have to come up with the cash, you will assign your interest in the property to an end buyer who will close on the deal. Your seller will get paid. You will get paid and your end buyer will get a house to reno and flip for a bigger profit. The GOLDEN RULE IS buy a property at 70% of after repair value- repairs. Then sell it at 80% ARV- repairs. You will have helped the homeowner sove a problem, received some money for doing so, and left meat on the bone for the end buyer.

Another way to find sellers in need of help, is to buy a list.  I have been using Listsource. I am buying lists such as foreclosure and distressed property lists. Usually the seller will be very motivated  to sell. Foreclosures  can absolutely  ruin a person's credit! They won't be able to buy or rent anywhere with a foreclosure on their credit. 

Finally, join a local Rei group and find someone more experienced to do a joint venture. Look up Meetup.com and search under Real estate. You will find a whole market there-including end buyers.


Hope that helps.

One tidbit on the foreclosures list ONCE an owner is on the foreclosure list their credit IS ALREADY Trashed..  you as the wholesaler are not going to solve that problem. I know its fun to talk about saving peoples credit but by the time the foreclsoure is filed its in the toilet . once it sells its simply another nail in the credit coffin but they are already 5 feet under ground so to speak. 

Learn as much as you can and that will give you the confidence to speak to more seasoned agents. Partner with more seasoned investors if you can. Sometimes, being genuine with agents or homeowners can go a long way as well. If you demonstrate that you can work through what you don't know then people can often work with that. 

@Natalie Mendoza Jerry Norton sucks and you should never never never try to wholesale off the MlS because he told you to. Please stop watching his videos or at least watch them and understand that he has no interest in helping you succeed as a wholesaler. He is trying to rack up youtube views and make money of his mentorship programs. You are nothing but his next Mercedes payment. Do not follow his advise. You are much better served following the advice of the active real estate professionals here on BP.

@Natalie Mendoza

Essentially, a wholesaler is trying to make a profit, which can be regarded as a commission. Listing on MLS the buyers broker is also trying to make a commission, as well as the listing broker. So the seller is receiving the market price less 6% for the licensed brokers and less 6-10% for the wholesaler. Someone's getting screwed.

Originally posted by @Natalie Mendoza :

@Jerryll Noorden 

30 leads in 7 days. Wow that’s crazy. Is that carrot your using? How long did it take using that website to get to that point?

I looked it up and they have the core, content pro, or advanced marketer. Which one would you recommend?

 Carrot is a vessel. A good one absolutely. But realize this. Carrot is a platform. You need to leverage that platform into a weapon of mass distructio.., I mean conversions. It is the content, your credibility that will get you the lead and thus the deals.

It took me a little less than 3 months to dominate my market and claim the #1 spot on Google. BUT, that is because I am damn good at what I do! I basically, discovered that everyone is doing SEO wrong. Everyone is focusing on Google. That is completely wrong. SEO is NOT about Google. SEO is about PEOPLE!.

When I discovered that, it was just way too easy.

@Lydia T. is right, as is @Don Konipol . Forget the gurus that ultimately have their own pockets at heart. Look there is nothing wrong with offering a package, a product a course, mentorship, but heck focus on the success of your students as a priority. Making money is a CONSEQUENCE of having successful students.

ANYONE that tells you to drive for dollars or to do bandit signs is a farce in my opinion. Wholesaling is simple. It is not easy... but it is very simple. All you need to do is focus on finding off market motivated seller leads. Then just be honest, transparent and truthful with the seller and I honestly don't see the issue.

The reason you shouldn't wholesale MLS deals is because what Don said.

You have the seller, then agent, then wholesaler then buyer.

Seller wants $100K, Agent wants 6% commission which is $6K, wholesaler wants $10K, then the back end buyer still needs to make $30K profits.

That is $46K of money that comes out of the sellers property... that is a lot of money. There is just no meat left on the bone. That  less than 50% of what the seller wants (in this case). The seller is getting screwed here...

@Natalie Mendoza Because its very rare that the numbers work. When a property is listed on the MLS the seller has already decided how much they want to put in their pocket and they have to add a 6% commission on top of that. Just because a Property is a fixer upper doesnt mean its a deal. Thats such an important part of wholesaling. Its all about the numbers. The numbers have to work for the seller or they wont sell, they have to work for the buyer or they wont buy and they have to work for the wholesaler or they wont bother with the deal. Wholesalers that look exclusively for deals on the MLS are going to fail 98% of the time.

There are so many other obstacles: do you have proof of funds? Because the listing agent is going to ask for it. Do you have the ability to put down 1% of the purchase price as EMD? Because most agents will ask for that much. How will you prevent a shady buyer from just calling the listing agent once you send them the deal? There is nothing stopping them because the information for the agent is right there in the listing. Wholesalers make money because they have deals that buyers cant get. A property on the MLS is the exact opposite. Anyone can get it.

Ive been in real estate a long time. Ive seen a lot of people watch some youtube videos, get fired up about wholesaling and then quit 6 months later. You are going to do what you want regardless of what I say or what anyone else in this forum says. Im just the sign on the road that warns you what lies ahead. You are the driver of the car and can choose to follow the sign or not. Either way, I hope things work out for you! I hope you succeed!

Originally posted by @Ned Carey :

@Natalie Mendoza I am going to give you a little different perspective then the above. You can't avoid looking like a Newbie. Anyone with the experience someone Like I, @Jay Hinrichs , or @Jerryll Noorden has will know within less than a minute that you are new.

Instead I suggest you let then know you are new and work from that perspective. You will get more respect by being honest then by trying to pretend you are more experienced then you are. 

To follow up on what was said above, now is a terrible time to find deals on the MLS if you want to wholesale. The competition is fierce. Every deal gets looked at by lots of investors. It is possible but it is tough.

Most good wholesale deal are found off market.  There are several marketing experts here on BP like Jerryll to learn how to do that. Do a search on how to find deals. 

 Damn it Ned,

Your logo makes me hungry. EVERY TIME!!