Wholesaling off the MLS: How would you structure an Offer to Purchase so you can Wholesale a deal.

[Samson Kay]

I saw a property that was really run down, and turns out that its listed on the MLS. After talking with my agent I found out that its part of an estate that the current owner is trying to sell. But its decrepit, needs work and theres no parking at all.

But a deals a deal right? Comps in the area value the house at 109K. And from my walk through I estimate rehabs to be approximately 50000.

So 100,000 X .70 - 50,000 = 26300. So I was thinking of offering 25K and seeing what they come back with.

Since its on the MLS, I'll have to provide proof of funds and what not and probably will have to use a standard massachusetts P&S in order to even be considered. But how Should I structure my offer letter to the seller first of all? and Then how should I structure the P&S.

[Steven J.]

I ran into this problem right away when I started looking at MLS deals. The problem with this is if you don't close on the property you'll lose your earnest money you put in. And, do they require a certain amount for earnest money for this property?

This is exactly when I understood everyone telling me that I need to focus on motivated sellers. They are the ones willing to take very little earnest money and are willing to negotiate at better terms because they don't want the property. If your current sellers have had this on the MLS for awhile and working with their own agent they may be holding out to get as much as they can now since the market is hot as I'm sure they have heard. The more motivated they are the more you can negotiate and work out a deal. If this wasn't MLS listed you could perhaps get a lease/option on it, but I don't believe the MLS allows for that type of things.

A deal is a deal, but don't force it to be a good one.