Finding deals on the MLS

[Gregory Fazio]

Hi all,

I am hoping to receive some insight on this subject. Has anyone had a fair amount of success finding deals on the MLS? As a realtor I am always looking at it and I see myself having better success finding something reasonable on the MLS to buy and hold. If I plan on being a buy and hold investor do I NEED to find a great deal? Still a newbie here and would appreciate any advice..

If I shouldn't be looking on the MLS but feel my only option is conventional financing in NJ (private/hard money seems difficult/risky with the BRRRR method)... where should I be looking?

Thanks in advance!

[Ed Emmons]

Your question made me think. I have bought more than 100 properties and I believe around 10 came from mls. I just don’t like the competition. I have found that on the real good deals you have from 15 - 60 minutes to make a full price offer. So in effect you are buying them from the hot sheets. I have also found good deals by making low offers on homes that have double the DOM as is normal for your area, particularly if those properties are bank owned. 

By far I have both bought and sold the most to other investors. Some are under the impression that you won’t get good deals that way but I have found it to be just the opposite. I have sold several that were very good deals to the buyers like recently 2 - 5 units, a 12 unit and 15 unit. Not all investors are at the same place in timing or situation. Years ago I would have bought what I recently sold in a heartbeat because I was expanding my portfolio. 

Other landlords that are advertising something for rent are a good source. Many will be self managed and a hassle for them. Local town's tax acquired property, bank and credit union REO, auctions and private ads from newspapers and classified papers like penny saver, etc. have been good sources for me.

There is a lot less competition in these areas and often some really good deals. I just bought a 3 unit with $1700 noi from another investor for $70,000. If you concentrate a week in the areas above I would think you would find a gem.