OfflineDG Fam,
I want to make sure of something. Are we not looking at already renovated houses and reselling them for a 3-5k spread or more. It just seems like a lot of the homes in my area have been bought, rehabbed and put back on the market. And also being bought on average of 93 percent of the asking price and even over the asking price. I watched a previous livecast from Matt Larson involving 25:1 and he stated about not being greedy. If homes are selling to most at the asking price, you want to try and get below that for a spread of 3-5k. But what about the rehab to make the numbers work? What about the ARV on those homes? THIS IS FOR MLS LISTINGS ONLY.....
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If you are looking at props on MLS, you are looking for ones that still need to be renovated. Not ALREADY renovated.
The market is so competitive right now though, that it is difficult to find good deals on MLS. Your time would be better spent looking for FSBOs that others are not competing for and driving the prices up.
Karen
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Bernard,
yes, you are probably looking at properties that have been purchased by investors/contractors who flip properties. They purchase reo's or properties from mls, renovate, and then re-list with an agent on mls to cater to retail buyers. In this current market, it is difficult to compete with other investors (and retail buyers) who are offering asking price and above.
As Karen suggested, market to FSBOs with bandit signs, yellow letters, flyers, business cards, etc.
Valerie
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If your market is drying up with deals you can always start looking to invest in other markets in your state or other states. This would be called remote wholesaling. This can also be an advantage for you if you get off the market deals for a really good discount and can market the price way up just a little under 93% to the buyers in your area since the deals are drying up on the MLS they will over pay just to get a deal. These are called speculator buyers.
Reynold Orozco
You are correct here. A large majority of the properties on the MLS are going to be marketed to end buyers. The great low priced deals rarely make the MLS. Your greatest potential here is to locate non-MLS properties.
Go back & reread the section you are mentioning or the livecast, go watch it again. Make sure you taking notes & then afterward review your notes or rewrite them.
This is to make sure you are following the teaching like it says ok. I personally am making in kansas city mo offers of the MLS at 60% of asking price & I am about at offer #30, couple of counters but no real ones. Will keep offering up to 50 offers, if still nothing then I am going to bump up all of my previous offers & future one's 5% to see if I get an offer accepted out of 25 offers made, or roughly thereabouts.
Same in San Diego, am going to start offering of the mls 80% of asking price etc. plus scour craigslist, oodle, backpage.com, have bird doggers send me props, relationships with agents to send me pocket listings, to keep fresh streams of leads coming in.
Tony
Go faster do more! GFDM!
If you have a real estate agent as part of your "team." You could as them to look up the percentage of difference between list and sales prices. Depending on their MLS software, they may even be able to show you a range. The highest end of the range is going to represent motivated sellers and/or wholesalers. This will give you an idea of what you can expect from making MLS offers.