If you’re a wholesaler/rehabber/landlord/ or any type of investor for that matter and you are ignoring the MLS for properties, then don’t listen to the noise….You’re missing out…
I’m all about going where everyone else all ready is, thats why I work out at 10 am, play tennis at 9am, go to lunch at 11 or 130….never get stuck in traffic, long lines, etc. You get the drift…
Anyway, we all ready know that in competitive markets, the MLS is scoured by a lot of agents, investors, etc. Multiple offer situations, best and finals, 1 day sales…How do you differentiate?
Make your time on the MLS efficient.
Hire a full time realtor to scour daily new listings, price changes, stale listings, removed listings etc.
But heres the key. And even though its boring, this is what it takes.
Make offers. ON all of the properties you want. But don’t stop there. Follow up with all of them. A lot.
There is the magic sauce. Make a lot of offers and follow up with all of them. You will be surprised how 1 of 10 will work with you and be flexible.
Make offers on all listings that are price reduced, on market 120 days or back on market.
If you feel confident that you can close quick on the property, write in…”close 2 weeks or less cash.”
Imagine a seller receiving 10 offers. 9 of them have 45 day close or contingent on financing (these don’t make sellers happy 🙁 And then they see yours….2 week close cash as is 🙂 So the key here is to be confident in your buyers list and what they pay.. Mobilize your buyers list. Get info on that here…
Remember to have your realtor to find out what the reason for seller selling. That way you can use that as negotiation leverage with 10 other offers. Example…Seller is selling as they have accepted a job out of state and need to sell fast…preferably 2 weeks. Guess what you can use in your negotiation?
Mr Seller, you’re asking x, I can do y, but more importantly you are moving out of state in 2 weeks, and with my offer I can close in 10 days and so you won’t have to worry about coming back to close this house…
See the point? If they want to sell quick (within 2 weeks) you can use that to lower price a bit if you can perform quickly.
Ok so here are some key points with wholesaling MLS properties…
Make sure to add in And/Or Assigns to your buying name. i.e Smith INC And/Or Assigns
Make sure to have a bank proof of funds ready to go.
If its a bank REO, or a HUD property, you will have to double escrow (double close) the property. Call some attorneys, title companies to make sure AHEAD of time they can handle this. If you get no where with them, call some of the top wholesalers and ask them..
Make sure to negotiate a longer inspection period to give you time to sell it.
Also you will have to put up earnest funds to secure. No way around this.
Typically 500 for purchase price of 50,000 and less on HUD and 1000 for purchase price north of 50,000. For REO’s this can vary from 1000 to 10,000 as it depends on the owner..
Make sure you’re realtor is well versed with wholesaling lingo, but more importantly how to communicate with the listing broker.
Its very important to move quick on these deals to sell them. Have a mobilized buyers list ready to go. Get info on that here…
You do not want to lose the relationship with the listing agent/asset manager so make sure you try harder to close on the MLS properties.
The key is to find a competent attorney who can handle the bulk of the transaction after you find the buyer. You’re job is to find deals, and find cash buyers that can buy now. Everything else let the pros handle 🙂
My good friend Jim actually created an A to Z template on how to Wholesale MLS properties, and how to find MLS properties for pennies on the dollar. I’ve actually done a good amount of deals with him in my local market here in Chicago, check it out here…