There are many ways that real estate investors go about finding their next acquisition. Driving for dollars is one way while sending targeted letters or buying from wholesalers are others. I myself have used these techniques and more. In today’s market however I find the source that works the best for me is the good old realtor Multiple Listing System or MLS.
If you are unfamiliar with the MLS, it is the database that realtors use to list all of the properties that they have for sale in a particular area. True, this list does not include all properties that are currently for sale, but it is going to include most of them. And it is the source where I have found most of the properties that make up my portfolio.
Why is that?
I think mainly because when a property becomes distressed, either through foreclosure or through poor management the owner wants to unload it. They are naturally going to turn to a realtor to list the property because that is the traditional way properties are sold. They believe that a listing will bring them the best possible price.
Most foreclosures are there. Most short sales are there. Many estate properties are there. In essence, many properties are there. So I am there too.
So how do you get access to the MLS? You can do that one of two ways. Either find an investor friendly realtor to work with you or become a realtor yourself. There are advantages and disadvantages to both methods and I will discuss those in another post. But as an investor, you need to have access in one of these two ways.
Once you have access, set up a daily search. Simply apply the criteria you are looking for such as the desired locations, types of properties, etc. You can also set the search to look for keywords such as “foreclosure” or “as-is.” Set your search to e-mail you either daily or immediately when a property that meets your criteria has been listed.
From there, you need to know your market. You need to be able to recognize a potential deal when you see it. Because honestly, there will likely be many properties listed that are not worth an investor’s effort. Learn how to weed them out by understanding your market.
From there you need to have your financing ready. Others are looking too and if you can move quickly and provide a solid offer, it just may get you the deal.
So get tuned in to the MLS. Set up a search and begin writing offers. You and your portfolio will be glad you did.
