How do I Make Money Off MLS deals?

Question

I am a wholesaler in California. Is Transactional funding the only legal way i can get paid off a deal from the mls by doing a double closing or are there less arduous and legal ways of getting paid through mls deals? Also recommendations on Transactional funding lenders  that youve done 2 or more deals with and had great success. Thanks :)

Chris Mason · Answer

Hi @Alaki T.,

If it's MLS deals you are looking at, and you can bring buyers to the table, why not get your real estate agent license really quick?

• Least arduous? Check.
• Lawful? Check.
• You get paid? Check.
• Workable on MLS deals? Check.

Jay Hinrichs · Answer

well then quit wasting your time and find the money to buy them the resell them.  geez get a clue.

Brent Coombs · Answer

I wouldn't have put it quite the same way as Jay, but if you can't/won't buy it yourself, and you're not allowed to broker it for profit, then, that's why Transactional Lenders ARE needed! Simple...

Ned Carey · Answer

@Alaki T. you can do the purchase contract in the name of an LLC and then sell the LLC to the end buyer.  Although people do it all the time, I don't like it. The devil is in the details and it is not quite as easy as it sounds.

JR T. · Answer

There is no free lunch. If you want to be a wholesaler you need marketing materials lead lists etc and continuously spend money on marketing to old leads and acquiring new ones.

If that work or investment doesn't appeal to you I'd find another industry. Real estate is 90% prospecting.

Kathy Kalb · Answer

A lot of buyers want walk in equity on deals. Besides good income production. Although, a lot of times walk in equity deals can sometimes require more funds for necessary repairs and updates. Me myself am conquering my biggest fears in acquiring real estate. I think the numbers rather on the market or off the market is what will help make deals happen. If the deal is to be had you will find a way to legitimately get paid. Even if you have to learn how to obtain like the big boys do.

This is the numbers for one I found tonight on the market--The potential is excellent if you ask me. :)

Asking price $1,590,000

Gross Income $547,000

Net Income $194,960

With standard financing rules

20% down is $318,000

30% down is $477,000

$1,590,000/360=$4,416.67

$194,960/12=$16,246.66 net income before interest if numbers are good

Units have some updates already. More outside work necessary to spruce up

What's nice about what we've worked out with a bank is that once we purchase all the money that would normally go to only principal and interest isn't necessary. As we are insuring our loans against default from the very beginning. A lot of holding costs are eliminated as well. The interest only part of the loan will be awesome. Totally self liquidating :)

Alaki T. · Answer

My niche is development and building if that helps broaden your perception about what I do. If not, then you need to stay in your lane.  You have no idea what I am trying to accomplish.

Alaki T. · Answer

Yes there is 112% profit margin - 125% profit margin to be exact!

Brent Coombs · Answer

If it's on the MLS, will there even be enough meat on the bone - if your Buyer/s scatter?...

How do I Make Money Off MLS deals?

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