How To Make Offers On MLS Properties For Wholesaling
Making offers on MLS properties for wholesaling requires a strategic approach and understanding of the market. Here’s a comprehensive guide:
1. Research and Analysis
- Pull comparable sales data from the last 3-6 months
- Calculate ARV (After Repair Value)
- Estimate repair costs
- Use the 70% rule: Maximum Purchase Price = (ARV × 0.70) – Repairs
2. Working with Realtors
Establish relationships with real estate agents who understand wholesaling:
- Be upfront about your wholesaling intentions
- Explain your buying criteria clearly
- Prepare to submit proof of funds
- Request longer inspection periods (15-30 days)
3. Making the Offer
- Submit written offers through your agent
- Include contingency clauses for inspection and financing
- Consider adding an assignment clause
- Be prepared for counter-offers
4. Key Contract Elements
- Assignment rights clearly stated
- Extended inspection period
- Earnest money deposit (typically $500-$2000)
- Clear exit strategies
Frequently Asked Questions
Q: What is a typical wholesale fee?
A: Most wholesalers aim for $5,000-$15,000 per deal, though profits can vary significantly.
Q: Can I wholesale MLS properties legally?
A: Yes, if properly disclosed and structured with appropriate contract clauses.
Q: How many offers should I make daily?
A: Successful wholesalers typically submit 5-10 offers daily.
Q: What’s a good inspection period length?
A: 15-30 days is standard for wholesaling to allow time to find buyers.
Q: How much earnest money is required?
A: Usually $500-$2000, but can vary by market and purchase price.
Q: Should I get a real estate license?
A: It can be beneficial but isn’t required for wholesaling.
Q: What’s the minimum profit to pursue a deal?
A: Most wholesalers won’t pursue deals with less than $5,000 potential profit.
The Bottom Line
Success in MLS wholesaling requires consistent effort, market knowledge, and strong relationships with real estate agents. Focus on submitting multiple offers daily, maintaining professional relationships, and always having clear exit strategies. Remember to stay compliant with local real estate laws and regulations while building your wholesaling business.