The formidable MLS.
The Multiple Listing Service (MLS) (also Multiple Listing System or Multiple Listings Service) is a database which allows real estate brokers representing sellers to widely share information about properties.
The purpose of the MLS is to enable the efficient distribution of information so that, when a real estate agent is introduced to a potential home buyer, s/he may search the MLS system and retrieve information about all homes for sale in a given area or price range, whether under a listing contract by that agent's brokerage or by all participating brokers.
For an investment property search on the MLS have your realtor create a "special template" for you and your particular search criteria.
This gives you a search form that removes all the stuff you don't want or need like: ·Blocks to the University Shuttle.
·Whether or not horses are allowed.
·Description of the dining room ·Listing agent's fax number ·Lockbox location Now these are all great things to know, and maybe your investment criteria hinges on whether or not horses are allowed or if your niche is specializing in houses that don't have central air and heat, then these things just get in the way.
For most of us we can wait for the full agent report where all these things are listed anyway.
Instead have the template customized for things that you need to know and need to know at a quick glance like: ·Days on the market.
·Price per square foot.
·Terms of the sale.
·Label ·Agent and internet remarks ·Miscellaneous business relationships.
·And of course area and price.
Let's start with area first.
You are going to be working on your "Flip" for weeks or months and it's important that you are there on a regular basis.
Forty-five minutes to your property is an hour and a half round trip.
Unless you are going to be a hands-off investor, get one close to home.
This is especially important for those of us who are investing part-time.
I pay close attention to days on the market and whether the home is occupied.
If a house has been on the market 100, 150 days or more and the average days on the market for that area is 30 or 40 then I know that something is wrong.
Most of the time it's too high of an asking price, but sometimes it's because it's an ugly house like the Homevestor folks say--an ugly house or an ugly situation, either way, it's worth looking into.
Terms of the sale--is the title holder willing to do owner financing, and right up front, again, it's probably a problem house, but one worth a closer look.
Price per square foot--find out what your neighborhoods, or your "farm area" is selling for per square foot.
If one house is selling in your watch area for $100 per square foot and all the others for $250, it's worth looking into.
Label--input HUD, VA,REO, this is one of the areas you can search to find foreclosed, repossessed properties.
I've saved one of my favorite search items for last and it's the Internet and Agent remarks section.
Often they are the same but not always.
This is where you put in the key word searches like: ·Handyman ·Must sell ·Motivated seller ·Lost job or laid off ·Needs work ·Divorce ·And one that gets my attention every time, "short sale".
The MLS is just one of the tools that real estate investors use to find homes and properties to flip.
The truth is, every metro area has great buys going up all the time, the issue is finding them.
This is why a great agent can be worth their weight in gold.
Never feel bad about paying an agent their commission, especially on a property you might not have found otherwise.