MLS Properties

[Ilena P.]

Hi everyone,

I'm a new investor trying to find vacant and/or distressed properties. I've been driving around neighborhoods and have also been submitting offers on properties listed on the MLS.

I've been told by several realtors that my low offers won't be accepted because many MLS properties are selling at or above the listing price. This has me wondering if I should shift my focus away from MLS properties.

Am I going in the wrong direction by submitting offers on MLS properties?

Thanks,
Ilena

[Christopher Um]

MLS is a great source to bring you comps on previous sales and expired listings. I recommend it for anyone trying to find how active houses are selling and the price they are selling at in a particular area you are working in.

Find a realtor that will pull up properties for you based on a specific category you requested. Try establishing rapport with a great buyer's agent.

Also... drive for dollars and look for listing agent for sale signs. Call them up immediately and ask for information on the property(bed/bath, days on market, bank owned, shortsale, standard, etc..), find out if they any other properties they are listing, and then make the offer (study your market of comparables first in the area). You may get rejected, but you may also have fished yourself a great deal.

However with many deals on the MLS, you'll be competing with other investors. Sometimes you'll even have to offer above the asking price to get the property. Which often means the deal won't make any sense for you to do.

There are many ways to look for properties besides the MLS, post your own ads, drive for dollars and jot down the addresses of distressed properties(boarded/vacant/old newspapers/uncut grass/etc..) and look for the owner's mailing address, call FSBO's, call for rent ads, and many times other investors will bring you great deals if you continue to network. Talk to neighbors and people who work in the community for news on someone trying to move or sell their home. Keep talking to as many people as you can. You may never know what kind of relations, connections or leads you'll receive.