Am I wasting my time looking at the MLS?

Question

Mainly talking about Zillow, Trulia, Redfin.  After coming here and reading up the last few months, I get the sense that one should never go after properties that hit the market and instead try to find off-market deals.  Am I wasting my time even going to any open houses?

Pearce G. · Answer

Found my first property on MLS.  Bought for cash.  Rehabbed.  Rented.  Refinanced.  BRRR.  Now netting about $350/mo and I have less than $5000 of my own money in it.

Yes, you can find deals on MLS, but it should not be your only source.  If you don't have a RE license yourself, find an agent who knows something about RE investing and knows what you're looking for.

The most important thing is to learn how to analyze a property to see if it meets your objectives.  MLS can be a good place to practice, but once you are comfortable analyzing properties, you can find them anywhere...networking, driving around, foreclosures, etc.

Jay Hinrichs · Answer

@Patti Rosepiler  well I don't have the same weight in our household.. My wife just walks in and says LOOK what I just bought.. and by the way I need an EM check for 10k and we are closing in 30 days Call Dan at the bank and get our loan set up  LOL.. that's who we roll.

but then again I come home and say Honey I just found a great market now its ony a 6 hour flight away in Charleston SC but we are going to build spec homes there...  so its a fair trade..

Chinmay J. · Answer

@Pat Coogan - A lot of investors will swear by not going to MLS, and while most of the deals are found off market, there can be some lucrative deals that can be found on MLS. You just need a good realtor who can bring them to you. Remember, as soon as its posted on MLS, it becomes available to everyone in the world. I am my own realtor, so I can do this research in the middle of the night if I want to. If you want to uncover hidden gems on MLS, consider.. at least consider getting your real estate license - else you are at the mercy of your realtor

GO NATS !

Patti Rosepiler · Answer

Jay, that is kinda how we are starting to roll! LOL!  He's almost there!  We just had to do a lot of rearranging financially. We are good to go now. 5 kids and he is a Federal Investigator for NCIS, so his job dictates where we live.

Pat, every real estate firm (mine being Coldwell Banker) has their experts. Should be easy to find your local investor friendly broker. Here in NC, we are a "broker only" state, so when I say agent I mean broker too. Sorry for confusion. We have to be both.

Pat Coogan · Answer

@Pearce G. Great to hear your success story and yes I'm going to start to analyze properties on the MLS to practice. I'd been using the napkin method so far but after running my last purchase through a BP calculator, I know I have a lot more to learn.

Pat Coogan · Answer

Thanks @Chinmay J. I was thinking about getting licensed, so good to know that your time investment was worth it. Friend of mine just got his, and as far as I know he's just getting it to represent buyers. I'd be getting it to gain access to the MLS. @Patti Rosepiler: how do you find an investor friendly broker? Is this different from an investor friendly agent? Sorry for the newbie questions.

Patti Rosepiler · Answer

So much truth here. As a real estate broker I have watched for great deals for investors who are ready to jump. Kills me that my husband was not on board with me to snatch them up myself! I missed a few great opportunities a year. I have literally sat by and watched it happen.One pops up, I beg him for us to snatch it, he waits around, it sells to an investor, then I'm showing buyers the same home 4 months later that sells for $80,000 more with very little rehab. Our area is a multiple offer situation most the time on any decent real estate. Now that my husband has seen (I have dragged him in and out of homes) and apologized (LOL!!) to me and kicked himself a few times, he's on board. But now we will be moving, so I'll have to trust a realtor in new area until I get rolling.

Chinmay J. · Answer

Exactly what I was trying to communicate. I have seen deals come on the MLS and get ratified within 24 hrs. If you are going to play in the MLS land, you have to be quick, and the quickest way to do it is to do it yourself. Its an investment as some have suggested, and it might take you 3-4 months to get your license.

I attended class in Jan of 2015 to Feb of 2015 (60 hrs of instruction required in State of VA) and was a licensed agent by March 15th or so.  The time investment was well worth it.

Jay Hinrichs · Answer

@Sid Leibowitz  while what you describe in a general way is true.. however you leave out key points.

if its on MLS there is a listing agent .. the seller pays them.   the seller pays the buyers agent as well.

as an agent you work for your broker for 2 years in most states then you can take the brokers exam and be on your own .. so yes there is a apprenticeship if you will.

there are plenty of low cost brokers that only charge a very very nominal fee to hang your license I mean less than 500 a transaction.. just have to google for them.. these cater to investor agents.

and an agent is at no disadvantage vis a vi making offers on MLS properties as anyone else.. only thing you put in your offer is a statement staying you are an agent.. that's all that's required

What @Chinmay J. is referring to is you get the hot sheet at 2 in the morning.. now not many brokers or agents I know is going to look at it scan it and send you deals. .you need to do this for yourself.

My wife is an agent she does one flip a quarter.. she finds them on MLS ( and not at 2 am either LOL) last one she did she made a little over 125k cash in her skinny jeans.. right off of MLS.. now there was multiple offers and she is very ex[pericned at this and usually will land the deals.

And even if you don't get your deals on MLS if your in the flipping to retail bizz your going to sell your home on MLS.. so being an agent to list your own deals is critical in my mind and anyone who does not control their own listings and sales side as a flipper builder is really just giving money away and not in control.

now that's in the state I live in.. in other states I hire brokers..

Am I wasting my time looking at the MLS?

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