Wholesale Deals from MLS
I've heard many BP podcast guests say they get a big chunk of their wholesale deals from the MLS. How have you done this?
I've scoured the MLS for about 8 wks now and found several "potentials", however I'm not finding any success yet in striking deals via this method. Tell me where I might be going astray or what I could be missing:
step 1) Find the deal. I've found most great deals only last a few days (if that) once it hits the MLS
step 2) Comp it out. I try to stick to 60% ARV. Too low? Too high? Ex: if it comps at $200k, listed at $179, I'll offer $120-130k
Step 3) Call the listing agent. I'm trying to establish some rapport with agents while also finding more about the property and sellers.
(sidenote: i can't believe how much agents are listing these trashed or severely outdated homes for...but i guess they sell??)
Step 4) Send the offer.
Results: nada. The agents don't even return my email or text me to say the seller rejected it. No counter, no nothing. I've sent about 10 offers to date. What can I do better?
Most Popular Reply
Your problem isn't execution, you just need a better strategy. Wholesaling off the MLS could have been a viable strategy back in the foreclosure crisis when low priced inventory was everywhere and there were few buyers. But with that drying up and the glut of buyers and aspiring wholesalers there are way more buyers than deals.
A wholesaler adds value by finding off market deals and bringing them to the market. A couple of things to consider:
Why would an agent sell the property to you for less than they could sell it to an actual buyer?
Why would an actual buyer pay more to you than they would to the listing agent?
If you can answer these 2 questions and add value to the equation somewhere you'll be in good shape. If not, you'll need to find off market deals somehow.