Step by step instructions for wholesaling off MLS

[Jarvis Frazier]

Can anyone help me with a quick overview of how to wholesale deals off of MLS?

[James Green]

@Jarvis Frazier there are buyers that will buy MLS properties from wholesalers, but it has to be a deal!!

You would wholesale a MLS property the same way any other property.

Here's what NOT TO DO:

For example, lets say the property is listed for 200K on the MLS. Don't get it under contract for 200K and add 5K(your fee) on top, then try to sell it at 205K as a deal. I see that all the time. From my experience the ones that do that just came out of one of those nationwide guru bootcamps.

Here's what to do:

Using that same example with the MLS offer price of 200K. You need to figure out the ARV & go from there.. So let's say the arv for similar properties is 225K, take 70% of that, minus repairs (let's just use 30k), minus your fee(5k) = selling price to a buyer. So in this case your offer price to a seller would be ~122K, THEREFORE you need to have it under contract for less than that. From a buyer's perspective a MLS property listed at 200K, that they can buy from you at 122K,...that's a deal a buyer can make a quick decision on. You don't have to worry about if they are going to go around you, wait our your contract time, etc..

In this scenario if the seller has their property listed with a realtor for 200K & you need to have it under contract for less than 122K.....you can easily see how DIFFICULT it can/may be to wholesale MLS properties. This is just an example, which doesn't take into effect where you live, inventory in your area, the type of property, etc.

As @Arpan Patel & @Elbert D. point out, off market deals are much less of a hassle on your end.

Also I believe as a realtor you need to disclose to the property owner that you are a realtor & possibly have them sign some a disclosure form that they know you are a realtor, and that you are buying for your own investment purposes. Also I would think your broker would need to approve of you wholesaling also. BUT,..I don't know since I'm not one, it's just what I've heard from the realtors in my area that wholesale.