Wholesale Real Estate from the MLS
The MLS is where 75% of homeowners go to list their home if they wish to sell it. The very first impulse of a homeowner is to call a Real Estate Agent to offer their home for sale. The website that real estate agents utilizes to get the property out into the purchasing world is the MLS
The MLS is a cash cow for Real Estate Wholesalers. The only thing that is stopping lots of wholesalers from accessing this profusion of offers is illiteracy on ways to move a home noted on the MLS over to an end purchaser and make money.
The first thing that you have to do is discover a Real Estate Agent. They are the secret that unlocks the MLS. Without them or without having a real estate license you can not access the MLS not to mention make deals or offers through the MLS. Let’s say they are the “Gatekeepers” to the MLS and you have to go through the Gatekeeper to obtain what you are looking for!
You need to search for a Real Estate Agent with an open mind ready to deal with you and for you (The Real Estate Wholesaler) in this situation. Let them understand that by dealing with you they will not just make a commission, but you will be helping them sell quite a few more homes by dealing with you. Many of the MLS homes are listings that have actually been on the MLS for 90 days or more. These listings would be coming to an end so I am basically assisting the Agent by presenting the property owner to my Real Estate Investors list and assisting the seller with an offer for a home that is not selling.
The distinction between a Real Estate Wholesaler and a Real Estate Agent is that we invest the majority of our time constructing our Investor purchaser’s list. Wholesalers (if their doing it the right way) develop their Investor purchaser’s list with active purchasers, financiers and so on. Prior to them even securing deals. The purchasers list is the structure that wholesaling is built on and every excellent wholesaler invests 90% of their time developing that list.
In a down Real Estate market you need to have the ability to discover lots of real estate companies ready to assist you through this process. After all they presently have more homes than they have purchasers so they would, in fact, benefit by having the ability to present MLS homes to your purchasers list.
Although here in 2017 the market is turning around. There is starting to be more buyers out there than houses for sale. This is good if you can find a good deal because it will be much quicker easier to flip.
Have your Realtor send you homes that … 1.) Remain in your market location. 2.) Have descriptions such as “Motivated Seller”, Handy man special”, “Make an Offer” and so on. 3. Have actually been in the MLS for 90 days or more. * You can likewise utilize this technique for Short Sales and REO homes.
I recommend you offer your deal on the home at 30% lower than the asking price. This guarantees sufficient room to make a wholesale profit.
If you get a deal accepted you will need 3 things for this wholesale deal, called Instant Equity Exchange (IEE). All files need to be signed by you and the seller. You can access these files at http://www.deangraziosi.com/ieecontracts.
Seller’s Acknowledgment and Investor Disclosure Agreements plainly describe to the seller that you are an investor which you have objectives of offering the equity in the agreement to another purchaser and earn a profit. This agreement MUST be signed by both you and the seller.
Investor Purchase Agreement is your basic buy – sell agreement or purchase agreement. 1. Your name as purchaser. 2. The Amount that you are agreeing to pay for the home and the amount of your charge (ex. acquiring for 50k + cost 10k so 60k goes on the purchase arrangement). The Investors Disclosure Agreement and Seller’s Agreement divulges your charge. These agreements will guarantee you earn money at closing from the purchase cost.
Discharge of Agreement To Purchase is the last agreement that will be required. This is the agreement that you will have to get signed when you have actually found a purchaser. You will go to the seller and let them know you have a purchaser. You have actually revealed to them your intent of finding a purchaser so they are not surprised when you inquire to sign this agreement. At this time you are assisting the seller and purchaser draft up a brand-new purchase contract between them. As soon as the new agreement and the Discharge of Agreement to Purchase is signed you can through out your initial Purchase Agreement between you and the seller.
The Investors Disclosure Agreement and Seller’s Acknowledgment together with the Discharge of Agreement to Purchase will function as your billing to be paid at closing. You will simply hand these 2 files to the closing Agent or Title Company and be paid your agreed price at closing.
For ways to find a house to flip go here.
TSR Real Estate Ventures, LLC buys and sell houses to flip for a profit. If you have a house to sell, please contact us.