Can you find good deals on the MLS??

[Benjamin Riehle]

There is a common belief among investors that it is impossible to find good deals on the MLS. If you want a good deal you have to find it off market. I strongly disagree with this statement, and below I am going to explain why. 

Now, I recognize that every MLS is different, and I am speaking particularly about the Southern Arizona (Tucson) MLS, however I believe most MLS's offer similar opportunity.

Of course, great deals are found off market, but that does not mean there is not opportunity for investors on the MLS. The key is being able to navigate quickly and look where others are not.

First, to be successful with off market deals you have to be quick. I have purchased numerous deals by submitting offers within the first hour of the property being on the MLS and allowing the seller minimal response time. Speed wins the day, you have to be able to get an offer submitted immediately after a potential deal is identified.

Second, figure out the sellers motivation and be creative. I regularly run searches for properties that have been listed for 100+ days and when I identify a property that has potential I try to create win-wins for myself and the seller. Calling and speaking to the listing agent can provide valuable insight into what will motivate the seller. If the deal is listed for sell then the seller has some level of motivation, creativity can go a long way. 

Third, look where others are not. When I say look where others are not, what I mean is you have to look at deals through a different lens. One recent example of this that allowed my team to identify a home-run deal is looking at properties where potential lot splits are available. In Tucson, if you have a lot of 10,000 sqft you can split the lot. The property we purchased had been on the MLS for 80 days and on the surface appeared to be overpriced. The MLS had the property SqFt incorrectly listed. The only reason we caught it was because one of my team members happened to drive by and saw a huge lot and it triggered him to do more research.

Regardless of how you locate investment deals, you have to be willing to work hard to find them. Unfortunately, there is no workaround for hard work. Hopefully though, this post provides some value to individuals who have written off the MLS and gives them another resource to locate deals.

Disclaimer* I am a licensed agent and have MLS access, for individuals who do not have a licenses, I recommend you build a relationship with a local realtor who can set you up on a full market search to allow you to look for hidden gems on the MLS.

Good luck and happy hunting!

BAR