How do I wholesale or rehab an MLS house without the cash in the bank?

[Jason Brooks]

I know the title sounds naïve, but bear with me on this one.

Does anyone have any advice on putting a house under contract that is listed on the MLS?
Should I be getting a pre-approval and making offers as an individual? What if I am trying to lock down a house so I can find a partner/mentor to JV with? I don't necessarily have the funds needed to secure even a cheap house but I have a pretty keen intellect, and I know there are options for folks in the same position as me.
My real estate agent keeps stating she needs a pre-approval letter, then I have to fill out a bunch of paperwork and basically I'm obligating myself to buy. I know I can use a contingency clause to exit in case of a funding issue or if I cannot find a partner/buyer. But is there something I am missing? Or is that type of scenario unattainable with an MLS listing?

[Rebecca Chapa]

Jason,
First, if you are working with a Realtor I strongly recommend finding one who is also an investor, someone who is buying and selling and renting their own properties. Especially if you can find one who is doing the kinds of deals you want to do.

Second, if you are looking to do wholesaling, then you may want to look for off market deals rather than on market deals (MLS=on market). Work on creating a list of buyers, network to find them and write down a description of their property types/interests. Then go out and find the deal so that once you put it under contract you have buyers to call right away and offer the deal to. Ask for a long option period to give yourself more time to find your buyer.

Third, to control a property you must use contracts.

Fourth, can you qualify for a loan? If not, then focus on stockpiling your cash while remedying the obstacle to your ability to qualify for a loan (reduce debt, credit score, etc) and/or find a partner to work with who also has cash or who can qualify for that loan.

Fifth, just seek seller financing or take over someones payments to buy something.