MLS Offers - Process, System and Strategy

[Brian M.]

I am an investor with a RE license and often times submit offers on MLS listed properties. My question is about creating a better process for this.

I want to make more offers, but generally don't like to offer in the blind, so looking at several properties is cumbersome when most either sold or priced out of whack. It also seems that offers under 80% of list are ignored.

How are other investors making MLS listed offers on properties? I "could" add a contingency on property review, but don't want to burn bridges with REO agents by backing out of offers after the bank has accepted them and I then view the property and see its a money pit. Couple that with my primary area you can't "assume the worst" b/c the properties are 1950+ where most things are in tact so this strategy lands no deals.

Does anyone have a good strategy on submitting MLS offers in bulk? I really want to create a better system to land REOs.

[Anson Young]

Originally posted by Justin S.:

Brian

I buy mostly off the MLS. To stream line I've done the following:

1. Electronic Signatures

2. Hire a driver to view properties for you and send you photos.

3. Give up commissions.

4. Hard Earnest

5. Try to be the first offer

6. Build a relationship with the agent.

7. My initial offer is usually pretty aggressive on price.

I agree with everything Justin says here, I primarily buy off MLS as well.

Shotgun approach:

I figure out where I'm buying, and the max per square foot I can pay based on the subdivision (excel does wonders here...), and I go MLS hunting in those areas for active AND pending properties. I download them into my excel spreadsheet which automatically tells me my max offer based on the square footage/subdivision. I load it into some offer software and blast out offers (blind, since many are in other states). Actives get offers, pendings get "we want to be your #1 backup offer, if it falls through for any reason let me know" with a backup offer attached. Pendings are blank on the buyers agent side, they can double end the deal as incentive to go with my offer.

Rifle approach:

2-5 times a day I'll hunt in my target areas, and do exactly as Justin does above. I'll pounce on properties first day, or right when they come back on the market. I use MLS and some other software to help identify decent deals at a glance. I'll setup showings, send our field inspector to take 60 pictures and good notes, and send an offer same day.