Experienced Investors- Is MLS Access A Must Have to Invest In Real Estate?

Question

Hi Everyone,

I'm going to start a direct mail campaign to hopefully pick up some rehab/house flipping deals. My brother who is an experienced investor insists I need  MLS access because its been giving him a lot of valuable information on the leads that come in. I personally cannot afford MLS access right now (Its $1000 per year.) I'm not willing to pay that unless I know I absolutely cannot be successful with out it.

For now, do you think I could get by without MLS access by just using sites like zillow for comparable sales? Once I get a couple deals, I'll be more willing to pay  the $$. But until I see $$ coming in I am really nervous about dropping $1000. I'm already spending  a lot on the marketing.

Experienced investors, do you use MLS? How has it helped and could you get by without it?? How did you get access to it? Any ways around these fees?

Thanks!

Lauren

Dale Osborn · Answer

J Scott - check with your local board. NAR was sued by one of the states - I think it was Connecticut and were directed to open access to the public. If an individual wanted to join the local board of realtors, they had to pay all the same annual fees a licensed realtor had to pay in order to have access. That was the way it worked for the local board I was associated with while licensed.

In addition to the public being able to access the MLS - there are some realtors that would put the listing out there for the individual at a flat rate. Others would provide lists of available properties for certain Buyers.

Just FYI.

Ibrahim Hughes · Answer

I agree with that (having been a former subscriber of Realquest myself) and will take it a step further.  Until I got licensed as a realtor, I had no idea what I was missing out on regarding what retail buyers and tenants (who are a critical part of the buy-fix-sell and buy-hold systems) look for when looking for a home.

I went and got licensed so I could sell a rehab I was working on.  After the rehab sold very quickly once it was listed on the MLS I decided to step back and do some realtor work to get a better understanding of the marketing and sales side of the rehab business.

When I went out with buyers and tenants looking at homes, listened to their critiques, observed what turned them off and what turned them on, and then comparing that info to the data on the MLS,  I couldn't believe how much info I missed during the years (12) I've been in this business.

I now go out occasionally with friends and family who are looking for homes and apartments just to stay in touch with the market.

I say if you can, get licensed and use it to access the MLS. If nothing else, you could do a few easy realtor deals to pay for your licensing and MLS access fees.

Wayne Brooks · Answer

But, more on topic, there is a wealth of info. and a lot of searches you can do with Full MLS access, that you won't get anywhere else.

Wayne Brooks · Answer

I've never heard that either.  In Florida, EVEN as a licensed agent, AND as a Realtor member (Local and nat'l) I can NOT join the local MLS unless my broker also belongs to that specific MLS (we have 4 MLS's in Dade, Broward and Palm Beach counties).

J Scott · Answer

So, you're saying that someone who is not a licensed real estate agent can join the National Association of Realtors?  And you're saying that someone who is not affiliated with a specific brokerage can get access to the MLS just by being a member of NAR?

Do you have any sources that provide more information about any of that (or about the lawsuit you mentioned)?  I've never heard that before...

Brian Burke · Answer

When I first started, I used comps from First American.  That worked OK back then when there wasn't as much competition (early 1990s).  Then I got MLS access, and that changed everything.  I had no idea how much information I was missing out on while using title company comps.

You can use a service like Realquest which (in disclosure states) shows you actual sold prices.  What you don't see is whether there were credits or concessions, agent remarks about property condition, and photos of the interior of the comps.  It's hard to come up with your ARV if you don't know what you are comparing to.

If you are planning to make this a hobby, keep your expenses low and use whatever free or cheap resources you can find.  If you are planning to do this to make money, make the investment to get the data that gives you the best chance of success.  The last thing you need is to be at a disadvantage because you have poor data while your competition has good data.

Kerry Baird · Answer

Perhaps you can get SOLD information from a title company or from the county recorder's, sometimes for free.  I value information from these sources because they include FSBOs and other transfers, as well as information regarding NODs (notice of default), and similar.

J Scott · Answer

NAR doesn't provide access to the MLS for a fee (there is no central MLS).  Individual MLS' will allow access, but generally only to licensed agents and in some states, to support personnel.

Also, I think the OP is interested in SOLD info, which isn't going to be available on agent's personal websites.

Dale Osborn · Answer

NAR has a monopoly on the info and for a "fee" they will allow access to the system. However, most agents have their own site and they in turn post all properties for sale on their site. You do not have to pay to access the info from these sites. Do some checking around to see just what is actually available to you.