Yellow letters vs. MLS

[Michael Norris]

I have been analyzing a number of properties on Zillow using the Bigger Pockets rental calculator and I am finding, from a price perspective, that most houses in my area just aren't a good fit for rental properties.  The ~20% that are  good introductory prices for rentals  are in need of a good rehab. This is fine, I have nothing against a rehab, but what I am questioning is:

• What would be the best tool to generate the lowest price on a property,  a marketing campaign (yellow letter/ postcards) or a real estate agent? 

Being a new investor, I want to say that the lowest average possible price that could be negotiated from a lead off of a marketing campaign will be better than the lowest average possible price that could be negotiated on a property off the MLS. I come to this conclusion, that the marketing campaign will be better, due to working with motivated sellers (more liable to negotiate). I also know that in order to get the best price possible, the wholesalers are running their own marketing campaigns. Also, the cherry on top would be avoiding the ~3%, the costs of doing business with a real estate agent.  

I understand that real estate agents preform a lot of tasks ex. provide tours of properties, discover properties that fit the clients needs etc. All of these tasks help to validate their cut of ~3%. While looking at things only from a price perspective, are rental property investors stupid/ lazy when purchasing deals straight from zillow/ trulia/ MLS? --- gee, now I know why investors are motivated to get their real estate license. haha

[Ned Carey]

@Michael Norris generally you are right, Bargains are more likely to come from off market deals than listed properties. But Direct mail is only one way to  find off market deals. There is no one best way to find deals. you have to experiment and find what works for you in your market.

Just for the record i have not been very successful doing direct mail. I did however buy a listed property for 5%of asking price. Getting good deals is more about identifying potentially motivated situations and negotiation that it is a specific method of finding deals.