Placing Properties on the MLS to wholesale??

Question

I know its possible to place properties on the MLS to wholesale stating financing will be cash only but is it worth it?????????

Jarcelyn Dorsey · Answer

Im currently building that and was just thinking about placing it on the MLS. Even if i do Ill request buyer pays all closing cost esp. if the house is a very good deal

Jackie Lange · Answer

Ideally, you have several buyers already lined up before you even get the deal so you can sell it immediately and there's no need to put it on MLS or pay a commission.

Jarcelyn Dorsey · Answer

@Steve L.  
Wouldn't it be different if this is a private seller and not something i found of the MLS.  My man reason was to attract more buyers but have a stipulation on the financing as Cash only!

@Jason that's great. Thats what my plan was so i can have a greater marketing audience! To your end buyer did he/she pay all the closing cost?

Jason Grote · Answer

Our family business deals mainly in flipping houses.  We recently received a call to purchase a home from an individual looking to sell quickly.  We offered him about $20k less than he wanted/needed.  My wife is a Realtor, so I offered him an opportunity to list it on the MLS. I told him because of the heavy rental activity in this neighborhood and the at the price point he wanted to sell, he could probably get what he wanted.  Sure enough, he just received a cash offer where he wanted it from a man wanting to put his daughter in the house instead of paying for an apartment!

Jason Grote · Answer

I have seen several investors in my area do just this, especially if there are many renters in the neighborhood of the home.  They can list a property on the MLS (yes after acquiring it) and reach many more prospective buyers and consequently make a much greater profit even after paying realtor commissions...

Steve L. · Answer

It might help if I mentioned the reason why I want to own the property if I put it in the MLS.

I buy mostly REOs.  Banks make it difficult to wholesale their product (deed restrictions, no assignees).  If I can wholesale to an investor I've worked with that trusts me... they'll close my escrow and I'll give them a grant deed.  Try doing that out of the MLS!!

The reason I like the MLS is there is a lot of landlords that don't need to buy at a discount throwing cash around in California.  So you can make more to offset the additional costs involved (paying cash, holding period, escrow fees).

Steve L. · Answer

I like to do this, but only after I take ownership.  Otherwise it is really confusing.

I find it really depends on the market condition, the price point of the property.