Wholesaling question

[Damon Armstrong]

Today I read a possible script to use when talking to sellers...in the script, the wholesaler tells the seller, we do not buy listed houses. The wholesaler also asks the seller when the listing expiration date is. What is the purpose of this, and why don't wholesalers buy listed houses?

Keeping that in mind, would MLS be beneficial to a wholesaler? Why or why not? Are all houses on MLS "listed"? If so, I assume MLS would be no help to a wholesaler. Thanks in advance for all input.

[Renee Watkins]

HI @Damon Armstrong

I would think that homes on MLS are close to market value, which cuts into your profit margin. The purpose of wholesaling is to find a property below market value, and re-sell it below market value...hence, striking a deal for you and your buyer. If a property has expired on the MLS, then the seller may become more anxious to sell the property and possibly lower the price. Foreclosures are ideal for wholesalers because they are below market value and the bank wants to quickly get the house off their books...banks are about loans and financials....not real estate investing. Pre-foreclosures could be great, too...if you can get to the homeowner before the bank does.

I hope this helps.....Happy Investing!