Wholesaling deals listed on the MLS?

Question

I've read you could do it, but just a little curious how that goes.  As far as I know, these sellers are listed on a flat fee (because they need to move quick, and need money and it doesn't show a picture of the REALTOR® it is listed with), and it is not a full service, so if I were to put a property like this under contract, would i just use my regular purchase and sale agreement , or do I have to go through a REALTOR®'s special contract?  Or is better for the seller just to cancel the listing so they could put it under contract with me?

Jimmy C. · Answer

Matt, you can totally wholesale some of the deals on the MLS that are private sellers using the flat fee system.

The reason is that the broker they paid a flat fee to is not representing them in the transaction.

I should know.  We have put properties on the flat fee MLS.  And if you had an end buyer (thats solid) we would give you an assignable contract and cheer you on as you (we) get paid!

We aren't stupid though.  We wouldn't give you that contract unless you had an end buyer in place.  Otherwise you would get a non assignable contract, and you have to POF and escrow.

My guess is that you could bump into informed investors when negotiating with these types of sellers.  But its a numbers game.  Enjoy!

Matthew J. T. · Answer

Curt, this is a FSBO not an REO.  There are two potential deals I may have, they said they can cancel the listing at anytime.  So that being said, I don't see why I would need to use a state contract or proof of funds?  Also, the deal doesn't show a broker it is listed with, instead it's on a flat fee.  I've spoke to them already , and they told me that they can cancel the listing at anytime, and that they haven't got any results from using the service.  So if they were to cancel the listing (FSBO) on the MLS I don't see why I would still need to use a state contract or have proof of funds? Wouldn't it just be better to have them cancel the listing and use my own contract?  I'm a little confused.

Matt

Curt Davis · Answer

Matt,  are you referring to an REO foreclosure or a home that an actual home owner is selling?  You can wholesale either but you will have to use the state contract and you will also need to show proof of funds and put down a minimum of $1,000 in earnest money.  Make sure you can close on the home if you get in locked up in case you are not able to sell it for a double close.  By your initial post you are new to this, make sure you dont screw up here as MLS many times has great deals and you will get a bad name and agents will not work with you if they know you will back out. Good luck