Realtors, MLS, Foreclosures

[Ryan Stumbo]

So I'm currently reading tons of info including investment books, BiggerPockets books including BRRRR book, asking questions to experienced friends, etc. One thing I have become curious on.

I started realizing through some friends that foreclosures were usually where you can get good deals. In order to see pre-foreclosures you need to have access to MLS. In order to do this, you need a realtor correct? If so, if my plan is BRRRR and all cash buys, how does a realtor come into play? I assume they aren't going to just look through the MLS for you without any benefit to them. So how do most of you get access to the MLS without a realtor or do most of you use a realtor for purchases?

Also, what if someone has a property listed by realtor and I don’t have a realtor but I really want the property? I assume since they’ve already listed with said realtor they can’t just back out of the deal with the realtor and accept my cash as-is offer. And from my experience you never even talk to the seller directly, all your communication is always through the realtor. So are realtor listed properties avoided or do you guys just bite the bullet and pay the realtor fees?

Thanks guys

[Minna Reid]

The fact is 99.9%of all foreclosed homes end up on MLS. Lenders make and service loans. They are not in the business of selling real estate and will hire a Realtor to pre-list and list their foreclosed homes. You can reach out to that listing agent, but their duty is to get the seller the most money, and working on your behalf doesn't change that. Also, contrary to popular belief, many realtors are not looking to work both sides of a deal. I know I don't, as you can never really represent two opposing parties in any transaction 100% fairly. The best you can really do is advise both parties less (a disservice to both), and just manage the transaction to close. I know many other agents feel the same way and will avoid dual agency. I know we Realtors sound like broken records to all you investors, but honestly - your best bet in finding REO homes is with a buyers agent that represents your best interests (and your best interest alone), has a high sense of urgency and understands the REO process completely.