What do I do next?

Question

Hello everyone,

First I must say I am thrilled I joined this network of great advice and minds!!! The other day I was able to get a realtor to send me properties off the MLS for the type of houses 85% of the buying market wants to buy. Now what? I am going through the listings and I have no idea how to proceed. I haven't made a deal yet however I am fairly certain there is a deal within the listings. Any tips on how I should go about sorting through the listings to find my first deal?

Thanks in advance!!!

Brent Coombs · Answer

@COURTNEY King, congrats on being further along the track than I was guessing. Having a Buyers list already is a big plus (providing they follow-through once you offer them what they say they want). Maybe you do even have some Buyers that your Realtor can't find. (Don't introduce them to your Realtor, otherwise you will likely be bypassed from then on).

You have been given some good advice so far, including ways to perhaps be able to get the occasional deal off the MLS.

Regarding the 50% "rule", it roughly means: will a property (easily) cash-flow positively on only 50% of the rent income, because the rest goes for expenses. This doesn't include your Buyers' loan cost (if any). Do I presume correctly, that your Buyers want to make money on their purchases from you? Cheers...

Kyle Soderman · Answer

@COURTNEY King Use the 50% rule of thumb! This rule of thumb can help you quickly analyze deals on the mls. Throw out the duds and further analyze the ones that work.

If you not sure what the 50% rule is then type "50% rule" in the search bar. There is a plethora of threads regarding that topic!

Yessenia Bell · Answer

hey congrats!

ask the realor if s/he can send you expired listings too.  Current properties in the MLS are under contract with the realtor/broker. Otherwise they wouldn't be selling them. However, if the seller as a clause in their contract to allow to sell while under contract, then you have the green light!!  Keep us posted ;)

COURTNEY King · Answer

@Don Cuffy thanks very much for your advice!!

Don Cuffy · Answer

I would first start by seeing which houses have been listed the longest, than narrow it down by bd/ba. Most investors in my area won't even look at anything less than 3 bd unless its dirt cheap or has room for a 3rd. I also generally target cheaper homes. The ones that are 200k+ I stay away from. Once you've narrowed your list down its time to skip trace. Check your city assessor's website for owner info. If they don't have it there do a reverse address search on peoplefinder, whitepages, pipl, etc. Once you have their mailing address or phone number its time to start mailing letters and calling. Hope this helps.

Brendan D. · Answer

You're welcome. post back with any questions you have. i didn't wanna write a book on wholesaling, but there's alot more. getting familiar with estimating repairs is one of the most important skills a wholesaler can have.

COURTNEY King · Answer

@Brendan D. Thanks very much I will do that!!!

Brendan D. · Answer

Look for houses in that list that need work. look for phrases like handyman special, needs TLC, sold as is etc. Next, buy j. scott's book on estimating repairs, and practice estimating repairs on the houses you go look at. That should get you off to a good start.

COURTNEY King · Answer

I am not sure @Brent Coombs how to proceed. I have just started so I am not even sure what to ask or how to sort through the properties.  I do have a strong buyers list that I am continuing to build but I don't have any properties to feed to them of yet...So I was thinking to go through the listings to find the properties they, my buyers, stated that they wanted...Is there a way to sort through the listings for my benefit? Or should I just leave them alone?

Hassan Muhammad · Answer

Good question! I am interested in knowing the answer too!

Not to rain on your parade but I was told once properties are on the mls, they already have been picked over by other investors!

How does one get the first choice at the properties prior to them getting to the mls... is something I'd like to know!