Why Wholesaling MLS Properties Is Becoming Essential
The days of avoiding Realtors and snubbing wholesaling MLS properties may be numbered for real estate investors…
The viability and profitability of wholesaling MLS properties has often been hotly debated, as has the ability of real estate agents and investors to get along at all. However, new industry developments suggest it may not be long before real estate investors have little choice but to work with them.
Some green investors have found attempting to wholesale MLS properties very difficult and frustrating. However, this is often because they don’t know the right way to approach it and think can sell retail priced properties for above retail to other investors, which is clearly a long shot. It does work, and can actually be highly profitable if done right.
Still new announcements and industry changes this week mean that even more properties will be channeled through the MLS. As of August 1st 2013 Fannie Mae will no longer approve short sales or even entertain requests from loan servicers unless the property has been listed on the MLS!
This may seem like an extremely odd government move from an administration which is supposed to be helping struggling U.S. homeowners and tax payers out of trouble, and clearly lines the pockets of Realtors and another party in a huge way. Though this certainly shows the lobbying might of the National Association of Realtors.
Short sales are obviously tricky deals for flipping anyway with so many new rules and restrictions, but this could easily be a start of a new trend and monopoly in which Realtors and the government collaborate to regulate the industry. While this may boost housing inventory levels, the downside is of course that it could instantly add huge fees and thousands of dollars in real estate agent commissions to the price of each home, or at least take it out of the pocket of homeowners.
However, unless you’ve got more lobbying power and dollars than the National Association of Realtors there is little use in griping about it. What real estate investors should be doing is embracing the new norm and working to get ahead of competitors.
This includes looking at the best types of MLS properties for wholesaling, building exclusive connections and relationships with the best Realtors and brokerages, negotiating down commission rates and crafting more lucrative and flexible listing agreements, as well as preparing themselves to be able to work faster to take down homes as soon as they come on the market.
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