Why I like to use the MLS Sales contract to do deals

The MLS (Multi Listing Service) contract is the sales contract used by real estate sales agents.  This being so a ton of money has been spent in making it perfect to serve the agents that use them.  Whenever you do business in a state where an attorney is involved in the closing of a deal, the attorney always bark at every sale contracted presented to them other then the MLS sales contract.  Not that other sales contract aren’t relevant, its just the attorney always bring up points with the contract so that an entire new contract is written up.  To avoid this time lag and terms you want to get across, I use the MLS sales contract to do all my business.

Nick what about the loop wholes and all the escape clause in these special contracts?  If you have to many escape clauses in a contract typically by the time it gets to an attorney, he/she will see this and throw it right out.  Simply said, to go under contract with a seller you need to be aware of how to confirm to what is normal to the real estate society.  So stop using these special sale contracts and fancy escape clauses because they really aren’t real.  Sure you can get away with it in states where attorneys are not involved in the sale but it doesn’t mean you are a true investor.  True investors understand how to work in any environment, attorney involved or not.  Point is… its not that difficult to begin with so why not right?

– Want to know all the escape clasues I have in my contracts?
– Want to learn how to make MLS contracts assignable?

Nick Tang

How to flip houses listed on the MLS with little to no money

The mls stands for multi listing service.  It is a system that sales agents use to post up properties and sell through other agents that have access to the system.  This system is very valuable to investors as it is a great place for inventory as Realtors run into a lot of opportunities and post them on there.

It is said that there is no good deals on the MLS.  This is 100% incorrect.  What is true is that there are good deals on the mls, its just they move so quick by the time you see it, it is already under contract.  So lets say you find a deal to flip on the mls, how would you go putting it under contract?

First of all, when you go after  deals on the mls you need a Realtor to represent you.  Typically your Realtor will require you to give him/her a check for $1k or more as what is called earnest money.  This money is the same as the $1 consideration you must give the homeowner when putting a house under contract.  It is just, with Realtors they have a higher expectation on what that number is and because of that they ask for more.  Note that there is no law saying that the number has to be $1k.  In essence it can be $1 to $1m.  Its just Realtors don’t take you seriously as a potential buyer if he earnest money amount is not reasonable to them.

This being said, if you just came back from some real estate investor training and you tell a Realtor you want to put houses under contract with $1 they will not want to work with you.  My point here is Realtors actually hate working with investors.  Especially newbies…  people that never flipped before or have the money to buy at worst case.  This being so you must work in every way to not fall victim to that image.  As soon as you do that agent won’t work with you anymore.

With that said, know who you can do the $1 consideration with and who you can’t.  Homeowners that you meet yourself don’t have a standard expectation of what to expect as earnest money and because of that $1 is fine with them.  When working with Realtors, in their world they are accustome to $500, $1000, $5000, $10000….  Simply ask them what they expect of you to put down as earnest money and match their expectation to move forward.

Once you submit your offer, send over the earnest money check to your agent and get a contract back from the sellers agent you now officially have the deal under contract.  If you plan to flip the property by selling the llc, make sure to read my how to on it.  Other then that you are all set to go and flip the property.

Like my write up?  Want to learn more on how to wholesale houses? I invite you to look into my how to wholesale for quick cash training video.  As always, if you didn’t learn anything from the video just email us and we will gladly refund you 100% of your money.

To your continue success,

Nick Tang