Investor Carrot Experiment Post 13. Flipping MLS Homes!

In this post, I will share with you a unique approach when using your Investor Carrot Lead Generation platform.

Flipping MLS Homes

Maybe you are one of those who feel as though MLS Properties are impossible to “flip”, or assign contracts with.  Maybe you feel as though they “are always priced too high”.  It’s even possible you could feel as though if it is on MLS… “its just not a deal.”

I’ve got good news for you!  The truth is, you can Flip MLS Properties… whether or not you are an agent or not!  While I can appreciate for some of you, this seems a bit.. unconventional.

However, if you think about it, MLS Listings represent a significant amount of homes that are on the market today.  Truthfully speaking, not all scenarios are the same.  In today’s post, I hope to show you how!

Jason and The Argonauts

I love mythology.  I hope you enjoy some of my ramblings about it, but I think that there are a lot of lessons that we can derive from some of the myths we all heard as children.

In the story of Jason and the Argonauts, you will remember that the hero Jason had been “robbed” of his rightful kingdom.  His evil uncle devised a plan by which Jason could obtain his rightful throne.

When his uncle (in disguise) asked him “what do you think is the most impossible thing to do?  You say you are worthy of a kingdom, what would a true test of a King?”

Jason thought about it for awhile, and said that the most impossible task, would be to obtain the “Golden Fleece” from a neighboring kingdom.  The Evil Uncle stated “well, then that’s the task! Go get the fleece, and you will be the king!”

So he assembles his team of 85 Argonauts, and climbs on his ship “The Argo” for his journey into legend.

MLS Properties Are Golden! 

While it may seem “impossible”  for you to “flip” or “assign” MLS Properties, the truth is... you can!

You see, just like Jason, you face “an impossible task.”  How is it possible for the unlicensed wholesaler, or Realtor® Investor “flip” or “Assignment of Contract” a currently listed property?  For the answer, let us turn to antiquity!

Jason Meets “The Sorceress” 

Medea
Medea

Upon his arrival on the island of Colchis, he was immediately met by King Aeetes.  Who just so happened to own the Golden Fleece.

As you can imagine, the King was in no mood to have this young stud on his island to steal what was rightfully his.  Now, as this could be a serious problem to Jason’s desire to have a throne; you can see the problem.

From out of nowhere, comes Medea, the King’s daughter.  Now, before the King goes and decides to handle this young kid’s audacious request with a country ass whipping, she persuades him to relent.

You see, she thinks he’s pretty cute!  Sounds like real life right?

Be Careful Of Labels

It’s hard to say why she was labelled as a “Sorceress”.  Probably the same reason why Mary Magdalene is maligned.

Nonetheless, her predicament in this era is tough!  Nobody wants to hang out with a “Sorceress”.  In fact, you could say that they probably had Facebook posts in their day that would say “ugh… don’t work with Sorceresses, they always steal your deals..Sorceresses don’t know anything… they are all so STUPID.”

The ThreeFold Test, and How To Flip MLS Properties

She saves Jason from a fight, and persuades her father to give him some impossible tasks.  She reasons with him that if he was only able to set up Jason with something that would be nearly impossible to do, then he could get rid of this interloper without wasting a single soldier, or risking a war.

King Aeetes sees the wisdom of this plan, and sets up a threefold test.

  1. Plow a field with Bulls who breathe fire, and who’s hooves are razor sharp… oh, by the way, YOU gotta put the harness on them…. no problem right?
  2. Sow that field with “Dragon’s Teeth”.  You got it… Dragon’s teeth… don’t worry.  I’ll provide the Teeth.
  3. Oh yeah… Slay a Dragon that never sleeps to obtain the “Golden Fleece.”

Sounds simple enough right?

What the Heck Does This Have to Do With Real Estate?

When you think about it, Jason’s story isn’t all that different from our own. We sit on the edge of a “Kingdom” of financial freedom that is rightfully yours.   Many times, portions of your freedom are held by an Evil Uncle in your mind that says the impossible task before you is interacting with Agents, and flipping their homes.

As you enter with your Ship and Crew (Business and Teammates); many times, the listing agents are not exactly “friendly” to your audacious idea of selling their home in this fashion.

So in order for you to make “The King” happy, you must enlist a “Medea”; a Sorceress of your own.

Who is Medea?

Just like the Sorceress of old, if you are intending to accomplish this impossible task, you are going to need some supernatural help!  If you are going to Plow fields with the “heat of the fire” on your back (Find a great deal), or sow some crazy field with dragon’s teeth (why do we have to use a State Contract? ), or Slay a Dragon that Never Sleeps.. (persuade a motivated Seller that it’s in their best interest to take your offer)…

You are gonna need some help.

Realtor

Plowing Fields, Sowing Seeds, and Slaying Dragons

So as the story goes, Jason was aided by Medea by a magic salve that protected him and his armor while he calmly harnessed the fire breathing bulls.   This allowed him to accomplish the task of creating an environment where he could sow the seeds that would allow him to get one step closer to his goal of financial freedom in his own kingdom.

For the Real Estate Wholesaler or Realtor® who invests, this is similar to your daily search through the MLS for properties that have mistakes and motivation (M&Ms)  Or when people respond to the blog post or lead page you put out.  It’s not always easy taking the “fire breathing” questions.

An agent who works with you (if you are unlicensed) can be a perfect “Medea” for you, giving you the assistance you need to find deals.

Soldiers from Seeds 

After successfully creating a perfect place to sow the Dragon’s Teeth, Jason set to work immediately sowing seeds.  From those seeds, sprang fierce soldiers with swords drawn!

A trick! You see, sometimes, a King can play a dirty trick to preserve what they consider to be “rightfully theirs.”

In case you didn’t know… Dragon’s Teeth, when sown properly, spring forth soldiers.

As a Realtor®/Investor or Wholesaler flipping MLS Property, you must use a State Contract.  Many times, you may be convinced that it is the most ridiculous thing possible to do. You may even see portions of the contract that do not pertain to your transaction.  In the end, you may throw up your hands and say “forget it!”

However, if you are on the quest of “Golden Fleece”… you gotta play the game!

So while you may think that by using a State Contract, you will “Sow Dragon’s Teeth” in a otherwise perfectly good transaction.. causing all manner of crazy, insane clauses that you don’t understand; and drawing their swords of confusion and killing your deal…

It’s just not true.

agent

Medea Saves The Day

Our Sorceress, Medea; the one whom all had rejected (I mean, who wants a Sorceress?) had forewarned Jason about the trap!

Jason solves the problem by simply throwing a rock into the circle of soldiers planted in the field.  Not knowing where the rock came from, they turned on each other, fought and killed themselves.

It wasn’t by accident that Medea had told him of her Father’s plot to trick him.  She had fallen deeply in love with him… and his success guaranteed her marriage to him, as well as her “ticket out of this little island.”

You see, Realtors® who Invest already know that the State Contracts can be modified to meet our particular standards.  REO Companies, Banks, and dozens of other entities routinely change the State Contracts to meet particular purposes.

By using a State Contract, you can use the clauses within it to protect you.  Most State Contracts are extremely “Buyer Friendly” and with your particular modifications to it, it can be even more so.

When you think about Flipping MLS Property, what you are really trying to do is sell the contract that it is written on.  If you are a Realtor®, or an investor, the quality of the contract is what will hold up easier in court, as well as be more salable for Realtor® Investors who will buy your deal!

So when the “Soldiers Spring Up” to threaten your deal… you can “Throw the rock” of the State Contract back into the fray… and have THEM figure it out!

Imagine the scenario where an 20 year veteran Branch Manager of a Title Agency says you cannot assign your property… and actively begins to prevent it!  If you have a State Contract, with the right language… how much argument would their really be?

Throw the contract back in their face and say  “show me where in the contract I can’t!”  ** (This actually happened to me)

Slaying A Sleepless Dragon

Now he’s not home free yet.  There’s still the issue of slaying a dragon.  Not just any dragon.. a Sleepless Dragon.   I don’t know about you… but I’ve had really young kids… I’ve spent some sleepless nights.  I can only imagine how angry a Dragon might be if you’ve missed a day or two…

Medea comes up with a plan… “let’s give him a potion, that will help him sleep… Then, we will be able to take the fleece and run away!”

The Seller Has A Challenge
The Seller Has A Challenge

Ahhh… just like a woman.. always using her head!

In our sales tradition, we are always presented with these archetypes of sales.  Win versus lose.. always be closing, coffee is for closers, etc.  While they certainly have their place, they don’t have their place in flipping the Multiple Listing Service Property.

You see… the Seller of the MLS home wants to sell their home.  They need a Buyer.  YOU are a buyer.

The question is, what price makes sense?  For you, you think the “Golden Fleece” is the price they want. The truth is, it isn’t.

Golden Fleece, and the Magic of Sleep.

As the story goes, Medea prepares a potion made of herbs and gives it to Jason to spray on the Dragon to make him sleep. There’s no “Slaying” necessary!

The Story doesn’t tell us the “how” of Jason’s Victory over the Sleepless Dragon, other than he sprayed the dragon, and he fell asleep.  Jason then seized the “Golden Fleece” and sailed off into the sunset with Medea, The Argo, and the entire crew.. the Argonauts.

Now I don’t know about you, but how do you approach a (as my dad used to say “madder than hell”) Dragon, and spray it with some Xanax?dragonfleece

You see, I believe that Jason simply had a conversation with the Dragon.

He had to show the Dragon what the potion would do for him.  How it would help him, how it would solve his problem, and more importantly, how it would feel after he would awake!

How refreshing would that be?  What would YOU give for that kind of relief?  If  you’ve ever suffered from insomnia, you can understand the maddening inability to sleep, will sometimes cause to you to give anything for a moments sleep.

Imagine how this poor Dragon must have felt!  Without sleep for centuries! And now, here comes a guy saying that he can help me feel better?

Who To Look For

Similarly, in the MLS deal, you must find the correct person.  The person who is either running out of time, or is tired of waiting, or is curious, or just plain frustrated.  The key is, that can be on BOTH sides!

Trust me, I’ve been a Listing agent before with some very frustrating listings.  I can imagine that there are other agents out there who feel the same.

So your offer on a property sometimes in those situations can be just the thing they need.  Imagine the relief they feel after knowing they have avoided foreclosure, because you bought their fourplex?

I believe that the Dragon, once sold on the relief that the sleep would bring, was all too happy to give up some stupid fleece that he didn’t care about anyway.

What’s that Jason?  You mean you made all this from LOCAL Ingredients with NO MAGIC INVOLVED?? I can do this myself after your gone??  Hell YEAH!!!

So once you have a cooperative Dragon, getting what they want, and seeing relief on the other side, is all too happy to look at your offer (potion) and if it works for them, then you get what you want!

Golden Fleece Isn’t What You Think

The Golden Fleece for Jason was simply a means to an end.  It helped him get his Kingdom.  For the Dragon, his “Golden Fleece” was a potion that allowed him relief.  For Medea, her “Golden Fleece” was a new husband, and a new life.

For the MLS Agents you deal with, their “Golden Fleece” is a commission.  For a Motivated Seller, their “Golden Fleece” is a sold home. For everyone in the equation, their “Golden Fleece” is very clear.  Except for you.

What is YOUR “Golden Fleece”?

 

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