HELP!! Wholesale Deal Falling Apart!

[DSkrove]

Hey Everyone!

Got a house under contract and am wondering if I can legally list it on the MLS. House doesnt need much work and maybe would be good for a end retail buyer. Is this legal to do?

Best Regards

[ReCoachDennis]

Hey DS

would love to help, but need more info.

how's the deal falling apart?

Have you taken title to this property?
ARe the sellers agreeable to having you list it?

More info = more help

 

At your service

Dennis

[christopher w]

Dskrove,

Here is the problem with you listing it on MLS. You will not be able to sell an assigned contract using conventional financing or FHA financing. If the owner of record on the appraisal, title, and sales contract do not all match your deal will be dead. Why not try craigs list or some local REI website in your area??

[MichaelQuarles]

Christopher w

Good to meet you

I have to disagree just a tad.. Dskrove can definitely sell the deal to the end buyer using traditional financing and FHA financing... Naturally its not a traditional transaction however it can be done...

BTW Dskrove it is legal to list the house on hte MLS... MLS rules state that the seller must authorize the insertion into the MLS... As the "Seller" you are authorizing it.. Again there are things that you'll need to do and watch out for...

Good luck

[aaronwilliams123456]

You can definitely put the house on MLS but you must get the sellers approval. And there are always cash buyers who look at the MLS to buy houses so i wouldn't really be too concerned about traditional financing if that route doesn't work out. Good Luck.

[JohnSchroeder]

many MANY deals and two lawsuits for EXACTLY this  issue have me piping in to say NO,
Do not list this in the MLS...

We had clauses in our contract that let us list it in the MLS.

The "owner of record" needs to sign the listing agreement.  Contrary to popular belief, you DO NOT have equitable interest in the property by having a contract.

You might be able to block a sale by filing an 'affidavit of interest' claiming you have 'equitable interest' but our broker just about lost her license when we listed two properties based on our contract.

The NAR, the MLS and your local Realtor board are going to STRONGLY disagree with this.

The seminars will tell you that you can do this...DO NOT

Lawsuit, Lawsuit, Lawsuit.

[MichaelQuarles]

Well as a Broker in Kern County California my Board has taken it to NAR and I have the right... So for those who say no I say you think too small..

Good house hunting

Michael

I really am bored by people saying you cant do something... Roger banister was told you cant run a 4 minute mile.. Once he did it the next year several people did it... I heard once that the color of your skin said you had to sit in the back of the bus... Thank God we changed our thought process.  These little minded people and their limited thought process pisses me off.

[Bay Area Brian]

DS

We are talking MLS rules and policies here, not law. Disclosure on the MLS is the key. For many years I did list on the MLS properties I had under option or contract and I got a specific power of attorney from the sellers. I was prepared to sue the MLS when they said no but they relented and agreed to permit them.

[ReCoachDennis]

OK I gotcha now.

If you have a motivated seller, you can have them list it on the MLS or give you an authorization to do so.

YOu don't have to do it on the sly, talk to whomever is going to be your listing agent. They'll tell you the best way to do this.

IN the future, start building two kinds of buyers lists:

1) Investors
2) Regular home owner wannabes

This way, you'll be ready to flip quickly.

This missing piece in the wholesaling puzzle is what I discuss on my blog as well.
You're welcome to the info.

Dennis

[ericmedem]

From my experience at least here in MI

You cannot legally list a home on the MLS that you ONLY have under contract.... You CAN however have the Property owner put the listing on the MLS but that would be kind of pointless in many cases.

If it were indeed legal to list homes that you were not the owner on the MLS then I could just drive down the street... Pick out any random house and list it... Then who would pay my fee when it sold?

[MichaelQuarles]

Eric

If you read the MLS rules and regulations it clearly states that the "Seller" must authorize the insertion into the MLS of a property... It doesn't say the "Owner"...

In fact my Board of Realtors actually took this up with NAR and CAR legal... Guess what... You can list the darn thing... They advise from CAR is that they would like the agent to include in the "agent remarks" "The seller has an unrecorded interest in the property" as a disclosure...

Happy hunting

Michael