Recently I started using this tactic when making offers directly to the MLS and it works. It has some drawbacks that I will outline later. I can't say I'm the originator of this but here's the deal.
- I have the broker on my Power team pull up a list using the MLS in the zip code of my choosing. There is some list criteria that I use as well. (repairs needed, fixer upper, etc)
- I then email that list to my VA.
- She goes though the list and calculates my offer by simply reducing the list price by 40%.
- She then emails the listing agent the offer using my "letter of intent" at a 40% discount.
- The agents email the counters back to us and then the fun starts.
Now is the success rate high with this tactic...heck no. But here's what we have accomplished with about 100 offers.
1 flip that'll net around $30,000
3 new real estate agents that now know who we are, what we do and are actively looking for deals to bring us.
1 agent that's willing to reduce his commission on the back end down to 3% on the deals that we buy from him and re-list with him after the rehab.
Couple of new cash buyers for wholesaling
A very cheap way of generating leads
Note: Yes, I've managed to piss off a bunch of cranky agents, been called the devil, a vampire, some other naughty words and probably made life long enemies. But all in all, pretty good success.
