Want to know a GREAT way to get deals from the MLS?
1 word: Realtors
You heard me right. A solid way we still land deals from the MLS is by leveraging Realtors.
Most people think the MLS is too competitive, or it’s too hard to find deals there, or there’s nothing left…
Well, friends, that’s just not true.
Fact: There are TONS and TONS of deals on the MLS.
I heard that 80% of the time when someone wants to sell a house, they go to a Realtor to have it listed on the MLS—even when the market’s hot!
So basic math tells us that there really are lots of good deals on the MLS.
Here’s what I do for MLS deals…
I have a VA (virtual assistant) search RedFin (no license required) for these 3 criteria:
- Properties in certain zip codes we target, usually 10-12, that are active listings
- Properties that have been listed for more than 60 days
- Houses that need work and/or updating based on the photos
When we find a property that checks all of those boxes, my VA puts it into my CRM (have I told you yet how much I love Podio?!).
Details she drops in Podio are:
- # of bedrooms
- # of bathrooms
- asking or list price
- Square footage
- Zillow link to property
- Zillow value
- RedFin link to property
Then, I have my VA actually calculate an offer based on a formula I’ve come up with and enter that into Podio too.
The reason we target properties that’ve been listed over 60 days and need work is because we expect that the seller would be more motivated the longer the property sits on the market…
And, their expectations are probably becoming more realistic for not getting full price on their property because of its condition or other ‘distress’ factors.
Now comes the magic…
We don’t send a blind offer.
Nope. Most investors are notorious for firing over blind, lowball offers and assuming the terms and numbers will be taken seriously and speak for themselves.
Instead of that, I have a member of my team (who also happens to be a licensed Realtor) call the listing Realtor directly and say something like:
“Hi, I’ve got a client who’s a cash buyer interested in this property. He’s looking for deals, does lots of cash deals, and usually makes lowball offers. Is your seller flexible on the price? Because he’d like to make an offer…”
In this situation, I find transparency is best.
Realtors get pissed when they get blind, lowball offers.
So, don’t be that guy.
Just call the Realtor and briefly explain what you do… think of it as a common courtesy.
If they seem like they’ll play ball with us, then we send them an email with the offer and a proof of funds (POF).
And, while you might get some deals this way—this strategy is also awesome for another reason…
You’ll likely find an investor-friendly Realtor (or a few) who want to build a relationship with you and bring you deals.
Because they can get both sides of the commission that way.
And, everyone wins:
- Seller sells the house
- You (investor) make some profit
- Realtor gets a double commish
Don’t assume the MLS is a no-deals wasteland. It’s a fantastic source for deals, if done right.
Network and build relationships with Realtors. It’s smart business.
Realtors and the MLS can be a goldmine for deals. Use them both wisely.