MLS Wholesale Strategy Tips For Finding Sellers
MLS Wholesale Strategy Tips
The Multiple Listings Service (MLS) is used by Realtors to find and sell properties that other Realtors are selling. Unfortunately for most wholesalers, you must be a Realtor to have access to the MLS. Therefore, to use an MLS wholesales strategy, you must find a Realtor who is willing to search for properties that meet your criteria. Then, the Realtor can input the data and have reports generated and emailed to you on a daily or weekly basis. However, when working with a Realtor, you will want to be as specific with your needs as possible so not to waste their time. Realtors work on a commission basis, therefore you should be prepared in advance and respectful of their time when asking for assistance. The following are some helpful tips to having success utilizing the MLS wholesale strategy:
MLS Wholesale Strategy Tips | Identify your market
In order to have a Realtor pull data, you must understand where exactly you want to market. Will it be an entire zip code or just specific neighborhoods or subdivisions. When picking your market, take into consideration the following:
- Quality of school district
- Proximity to high employment centers
- Crime rate
- How the neighborhood looks
- Utility cost
These items are generally what end buyers look for, so investors looking to implement the MLS wholesale strategy should take into consideration the needs of their flipper’s end buyers so they can have repeat buyers.
MLS Wholesale Strategy Tips | Demographics
Once you have determined where you want to market, you must decide what type of houses you want to market. Again, I like to keep the after repair value in the price range that where most of the area can afford to purchase. I use the following equation:
- Low end range: Average Individual Yearly Salary * 4
- High end range: (Average Individual Yearly Salary * 1.5) * 4
For example, if the average individual yearly salary is $30,000, then my After Repair Value price range would be from $120,000 to $180,000.
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Other demographic tips:
- Buy 3/2 or 4/2
- Stay away from pools as repairs can get very expensive
- Don’t get the largest property in the subdivision
- Price discounted more than x%
- Days on market greater than x
MLS Wholesale Strategy Tips | Comments
Finally, I like to have the Realtor send me properties that have the following ‘motivational’ phrases:
- Handyman special
- Bring your hammer
- Will listen to any offer
- In need of repairs
These types of comments generally tell me that the seller is motivated and that the property is in distress.
Image: jscreationzs / FreeDigitalPhotos.net
Finding motivated sellers using the MLS wholesale strategy can be done as long as you give proper instructions in advance to the Realtor.
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