Build a Buyers List!!! Really? What about the MLS?

[Jerry Kisasonak]

Much of what I hear about wholesaling is to build a buyers list and go find properties to fill those buyer's purchasing criteria. In other words, be sort of an order fulfillment company.

However, 98% of property sales are right off of the MLS, and that includes investment properties. I know of alot of investors that buy all their deals right from the MLS. They get deals automatically emailed to them immediately when they come on the market, they analyze them, and submit offers... LOTS of offers! And, low and behold, they end up finding the sellers that are ready to sell cheap.

As a wholesaler, it seems to me that instead of doing all the work to create your own mini-MLS marketplace by building a buyers list, websites, squeeze pages, etc, it would just be easier to tap into the MLS and list your deals there as a net listing. That way, not only will your hardcore investors see your deal (which they will put an offer in on because that's what they do... make offers all day), you will also get exposure to "John," the guy down the street who is still living at home, has a pile of cash, and wants to get out of his parents home but wants to stay local. He, of course, will be willing to pay more than an investor because he is willing to work for free... putting sweat equity into the property to make it how he wants it. Why not list your deals on the MLS and let all these potential buyers bid your property up?

As a side note, I realize that this is by definition no longer wholesaling. Also, I realize it may be hard to get an agent to list homes under these conditions and timelines. I'm a realtor, so on my end, that will certainly help. I have already spoke with my local MLS, and they are okay with an agent doing deals this way, so long as they are net listings. Also, I'm not going to do these transactions in my name, I have a wholesaling LLC set up.

In any case, I'll like some feedback on this subject. I'm not against building a buyers list, and in fact once I get some deals moving I plan to just call the investors before listing deals on the MLS. By why aren't other wholesalers doing business on the MLS? Why are they complicating things? Sorry I wrote a mini book here : )