There are deals in the MLS! It may not sound original, but it may be one method to start making money fast. I know, I know, you don’t want to work with agents, but sometime its absolutely essential. Learn how to get get cash fast with this method.

Before you start, here is what you need to do is get your funding in order. The reason I emphasize getting your funding plan worked out first is that it gives you, your real estate agent, and sellers the confidence that you can perform. You know, in general, where the money is coming from and this will give you the needed leverage in working with real estate agents and sellers. It’s just a waste of everybody’s time, including your own, if you haven’t identified your funding options in advance.

I have provided a hard money lender list for you in the bonus section here

You may also want to consider partners or private money lenders. Read more here.

This does not mean that you have to have firm commitment letters from lenders or signed partnership/joint venture agreements. It simply means that you have identified potential sources of funding and know what lending criteria you will need to meet. Once you find the good deal, you will approach these funding sources and get them signed up. Second, you will need to find at least one good real estate agent that you can work with in finding properties on which to make offers. This critical step is discussed extensively in the next chapter.

• The ideal real estate agent would:

• Specialize in selling distressed properties to investors.

• Have access to listings of bank REO properties.

• Be willing to submit offers on multiple properties, realizing that many of the offers would not be accepted.

• Be experienced in securing owner financing.

• Be knowledgeable about private mortgage sources.

• Be knowledgeable about the neighborhoods you want to work in.

• Be competent in evaluating neighborhoods and in establishing retail market values of properties after repairs are completed (after repaired value).

• Be agreeable to working with you on a “buyer agency” basis (which is discussed in the following paragraphs).

Here is the method I suggest you use to find that agent. Run he below ad on Craigslist or similar

Investor seeking a real estate agent that specializing in distressed property I can submit all cash offers and close quickly. Call Duncan at 248 6426.

It is very important when they first contact you, that you are very clear in your criteria. For example, you want to describe the type of deals you’re looking for as:

• Handyman, fixer-upper single-family houses located in decent neighborhoods, not in any marginal, high-crime areas

• Preferably vacant and institutionally owned houses (bank REOs) in need of a lot of work, not just cosmetic repairs

• Houses priced well below retail market value (after repairs)

Make sure you tell them that you will be offering all cash, with only a few contingency clauses, and therefore you expect to pay a substantially lower price. Tell the agent. that your offers will based on your sound investing principles taking into consideration precise market-derived data. Make sure the agent understand that you are not just random, low-ball offers. Tell the agent needs to understand up front that you expect only one out of maybe five of your offers to be initially accepted. However, the agent needs to know that you will want to follow up on each property and will continue to submit offers periodically on the same property until it is sold, either to you or to someone else. Tell the agent you want a buyer’s agency agreement applicable to all houses presented to you.

When you find your dream agent, it will be well worth it.! Don’t take the path of least resistance—and simply tell your their agent to call you when they have found a candidate property to look at. YOU have to be more proactive in the process. Some agents know exactly what to do and how to do it; others may need a little prompting from you.

Finding Target Properties

The properties you should target are single-family homes in need of significant repairs but located in decent neighborhoods. Houses located in low-demand areas should not be considered. Focus on neighborhoods of lower – to mid-priced houses in areas where first-time home buyers want to live. You have to targeting houses in need of “significant repairs”. This is critical to your investment strategy. Houses in very poor condition but are structurally sound command little attention in the marketplace and often can be purchased very cheaply. These are the properties that you can flip easily to other investors or you can transform them with a value-added rehab into a retail flip or an asset that produces substantial profits.

*** NOTE. Do not get involved with properties that have problems such as : severe foundation settling; extensive roof truss damage; soil or hillside instability; obsolete floor plans requiring a room addition; severe drainage problems; and the need for extensive lead paint, asbestos, or radon abatement.

Checklist for Profitable Neighborhoods

Age of Neighborhood

Houses should be at least 10 to 30 or more years old, showing signs of age.

Characteristics of Neighborhood

Condition of Houses

Below are my following tips to search the MLS database to pinpoint neighborhoods and specific target properties. Make sure to ask your agent to do these searches and show you the results. Let’s pretend you’re in Charlotte and you have your eye on a neighborhood called Winding Meadows. You’ve done your preliminary research. The MLS like any good database of information can be searched for key words or phrases that are contained within the listings. Here are some keywords to have your agent use in searching active listings: handyman, handyman special, as is, TLC, needs work, and motivated seller.

• Pride of home ownership is evident with most of the houses.

• Front lawns are relatively clean and well maintained.

• Little or no garbage in the streets.

• Very few, if any, junk cars in the streets or in front yards.

• Low to moderate crime rate in the area.

• Churches, schools, shopping, and transportation are nearby.

• Freeways, airports, factories, chemical storage, or other industrial sites are not in or adjacent to the neighborhood.

• Multifamily apartment buildings comprise less than 10 percent of housing in the area.

• There are a few but not many abandoned or boarded-up houses.

• Neighborhood is generally improving, not declining.

• Active real estate market based on review of current, pending, and sold listings during the previous year (obtain information from any real estate agent).

  • Showing external signs of age; exterior paint, roofs, fences, or garage doors.

  • No major structural or environmental problems.

  • Some of the houses (15 percent to 20 percent) have been or are being renovated.

Another favorite one that I like to search is VLB, which indicates the house is “vacant on lockbox.” You can probably bet that you have an owner who is making double house payments and is probably motivated to sell quickly. Ask your real estate agent to do some searches using these words and phrases. I am sure you will be surprised what deals may pop up. I recently did a search in the Charlotte MLS and came up with 127 active listings in the handyman category. You just don’t have access to this information unless you’re working with a good agent.

Here is another “secret” MLS gold-mining technique: Ask your agent to search for all handyman listings that have expired or have been canceled over the past year. . They can give you a complete printout of the listing with all the details, just like an active listing. This can be an incredibly successful technique for finding highly motivated sellers. In the case of expired listings, you have a seller who wanted to sell, but a buyer was not found during the listing period (usually a period of at least 90 days). Regardless of the reason the house did not sell, you have an excellent lead and little or no competition. The same is true of canceled handyman listings. People cancel listings for many reasons. Again, it doesn’t really matter why—what matters is that you have another good source of leads for finding potentially motivated sellers. With both expired and canceled listings, you have your agent look up the owner’s name and address via the MLS tax records, and then simply contact the owner to see if he  is still interested in selling. This technique can be very productive, but is often overlooked. Make sure your agent researches these listings for you.

The next step : ASSIGNING THE DEAL AND GETTING PAID , READ IT HERE

Now go make some offers and quick turn a house!.