Don't Solely Rely on the MLS for Deals

Investors, make sure you aren't relying solely on your local MLS to find your next deal. Here in Bergen County, NJ, we still have a glut of foreclosures in the system. However, once they hit the MLS, they are fully exposed to the market and often being bid up over the list price. I have been warning my investor clients not to overpay for properties, as I feel as are nearing the end of the real estate cycle. I wonder how some of these purchasers, if they are flipping, are making any money on these deals. There was a recent sale in Upper Montclair that was listed on the MLS for $599,000 and it sold for $741,000!! 

There are still good deals out there, but you have to move fast and be on top of the market. Many inexperienced investors, just take too long to pull the trigger and get their offer in.

I currently have 3 foreclosures in the pipeline that haven't hit the market yet. One of the properties, I just got the occupants to move out after negotiating a Cash for Keys agreement and had the initial trash out done.

I spoke to the asset manager the other day, and its almost like they are flipping the property. Instead of just doing a basic cleanup and listing it in 'as-is' condition, they actually want to do improvements to the home to increase the value and sell it at full market value! Just because a property is a foreclosure, doesn't mean you are getting a great deal!

The MLS should be one of your sources for deals, but also make sure you are doing direct mailers, online lead capture, and other activities to generate leads.