Wholesaling from the MLS?

Question

Hi BP, has anybody ever wholesaled a property they found from the MLS? It seems counterintuitive as most deals aren't on the MLS to begin with but I have found a potential home run in Charleston, South Carolina in the West Ashley part of town. Any pointers would be much appreciated. Mike

Tina Ferrier · Answer

hey, I'm in West Ashley, Charleston SC. Congrats on finding a home out here. if its in the MLS then most likely they are with a realtor.. if that's the case then.. have you ever thought about subject to.. rent to own or seller financing. That way you are getting the home owner to take it off the MLS or you are completing his deal with the realtor with the use of terms.. then turn around a wholesale the terms to another investor who is familiar with and knows how to profit from these types of deals.But if its a FSBO well.. call them and work your magic.I hope this helps in some wayeither way, please let me know how it goes, what solution you come up with and your progress.Again congrats on your potential home run and, as always, we are not in competition with one another but in collaboration with one another. as a team we accomplish moreCheers

Joseph Caracappa · Answer

Mike Bargetto I have heard this debate on the forum before. And some will say yes and others no. My option is that most real cash buyers have access to the mls or a realtor that works for them that does. I think that as a wholesale its your job to provide buyers with deals that they can not find on their own (properties that are not listed on the mls). Unless your planning on buying the property and the selling at a higher price, I would think most realtors are going to frown when they see your contract is assignable. If you know it is an awesome deal, and you have a buyer in mind maybe just point them in that direction. You will not get paid, but man talk about building a relationship with that buyer. Again this is just my opinion, hopefully someone that has had experience pulling off a mls wholesale deal will chime in. To your success bud!

Alex Franks · Answer

@MIke Bargetto really does not matter where you get it from the main thing would be get it under contract. If you are sure of you numbers and the deal makes sense that say it all. When I was buying rehabs , flips , wholesales I would shotgun MLS offers in both NC and SC. Been along time since I even looked at MLs listing but that's not saying it can not be done. Charleston is Hot.@Troy Gandee@Russ ScheiderHere are two guys that know that market well and might be good contacts PM is I can help in SC as well Alex

Troy Gandee · Answer

I'm a Realtor and as long as the offer was acceptable for my client and I was compensated for my work, then I would have no problem with it. As long as everyone wins, then it would not necessarily be a bad thing. However, as someone else said, most serious cash buyers are already going to be aware of the property if it's listed because it will be published on all of the major site (Zillow, Realtor.com, Redfin, etc). I don't think you would have as much luck selling it as it may seem. Plus, your end cash buyer would probably do better if they just bought it via the listing broker and didn't have to pay any assignment fees at all since the seller pays both buying and selling agents themselves.

Sean Cole · Answer

Can you wholesale a deal from the MLS? Of course! Will some investors (especially here on BP) tell you that you're not a "real" wholesaler if you do? Yes, again. There are a ton of threads about this already here, so I won't rehash them all. I'm certainly biased, but I believe that a full-time wholesaler can still provide value on MLS deals through negotiating and pre-vetting properties for their customers. In addition, you'd be selling at a fixed price, taking away the multiple offers situation that happens so often recently.You'll very likely need to double close, as others have mentioned. A competitor of mine here in Cincinnati ONLY wholesales deals from the MLS and another gets 99%+ of their deals from the MLS. The MLS has dried up for me in the last 60 days. Our volume of properties hasn't diminished, we're just sourcing them from other places.A deal is a deal is a deal, at the end of the day. If you can buy a house cheaper than someone else is willing to pay you for it, go ahead and do it!

Russ Scheider · Answer

@Mike Bargetto You are getting some sound advice from the forum. My wife and I have completed several wholesale deals on MLS properties. If you are willing/able to double-close, there is money to be made in the middle of an MLS deal (wholesale profit). In SC, realtors are quite rigid about using their standard contract, which is not assignable. A VERY small minority of agents/brokers understand assignment of contract and 99% of those are hesitant to put together an assignment deal, because, frankly, they don't have to. This market is so hot that realtors are not very flexible. Time is money and there is another buyer right behind you. Please keep us in mind if you decide to wholesale this West Ashley property. My wife is likely to be interested. Please send me a private message if you are willing to add us to your buyer's list.

Ben Dao · Answer

I have wholesaled on HUD before. The thing is you have to put $500-$1000 down and if you do not execute you lose that earnest money . So have a buyer lined up first if possible. You also have to do a double close instead of an assignment. Just some things to think about as far as wholesaling through HUD.

Mike Bargetto · Answer

Thanks Joseph Caracappa I appreciate the insight. I think the listing agent would probably frown as well. I guess I'm really looking for a way to get into wholesaling! Thanks for the time on this post.

Mike Bargetto · Answer

Tina Ferrier ⬆️

Mike Bargetto · Answer

Hi Tina, thanks for the great and quick feedback! This is very helpful. I may just purchase this and keep it as the cash flow is surprisingly really good. The seller isn't interested in a carry of any kind. Nonetheless, a great reminder of how many different ways there are to skin the cat. Mike