Wholesaling from the MLS

[Tarek Wazzan]

Has anyone wholesaled from the MLS (excluding the foreclosures and REOs)?
Does it actually work? How much earnest money? And what clauses would you need to include on the contract the realtor sends you to be able to assign it to a cash buyer?

How many offers do you need to put in order to get one accepted?

Thank You

[John Evan Miller]

Wholesaling through the MLS is not impossible, just improbable. There are several reasons.

First, realtors have priced the properties. They are paid by commission. The more they sell the property for, the greater their commission. That is why most properties are at or very close to market value. Not that you can't find a good deal in the MLS but the profit margin for a wholesaler will be much smaller.

Second, realtors are a possessive lot that viciously guard their real estate market against "non-licensed professionals." Many, even most (but not all) realtors are not going to take kindly to low-ball offers from individuals that are bring buyers to pay more for a property and cut them out of a greater commission.

So, if you want to farm the MLS, go ahead, but you may find outside deals more profitable.