May 24, 2014
-- Now let's get one point straight right out the door, the majority of the time when you see an ad that states' We Buy Houses' it is rare that the person or company who placed the ad will actually purchase your property. Most of the times your telephone number and call conversation is recorded, stored and sold off to TEN's or hundreds of other individuals wanting to get a great deal. This is what materializes when you interact with a marketing or lead generation company. Once you place your first call people will constantly call you on a daily or weekly basis for months or years afterwards, even though you sell your property. You're going to want to avoid this outfit or if you call them, use a disposable number.
The next sort of entity is what we're going to call a dealer. These are typically individuals that have recently went to a boot camp, class or seminar about lining one's pockets in Real Estate. In most cases these individuals conduct business for anywhere from two to four months and then completely stop without ever actually helping anyone. You can typically spot these individuals with their hand written bandit signs on the side of the road, cheap posted flyers or vista-print business cards. Their advertisements vary in verbiage from 'I BUY HOUSES' to 'Sell Your House Fast for Cash.' If you contact this individual you'll notice that they sound nervous, unsure of themselves, and completely ignorant about everything that pertains to purchasing property. If you wind up doing business with this person ninety nine times out of ONE HUNDRED times you will find yourself wasting time and not even signing a contract. In this business especially, if you are facing pre-foreclosure, time is essential and you must work with someone who understands what they're doing. What they are trying to perform is write up a contract for the property and resell the contract before they close on the deal. There are very few people who are available in the marketplace who know how to carry this out successfully. You can tell the novice from the experts by what they know and how confident they sound over the phone and when and if you meet them in person.
Next on the list are Real Estate Investment Trusts also known as REITs or hedge funds. The chances that you will actually encounter this variety of group or anyone representing them are slim to none. They normally work with experienced wholesalers and people who purchase property at a deep discount and re-sell to them very quickly. They normally pay anywhere from 85 to One Hundred Percent of the actual value of the property in its as condition. These outfits are looking to buy and hold for the long-term. You would probably be best off dealing with this entity because they purchase with all cash, are very easy to deal with and are serious buyers. Unfortunately, it is extremely difficult to find them and you'll need to rely on the people who actually market for purchasing services if you want to take advantage of their activities.
Aside from everything that I have listed above we're now going to visit construction companies or real estate development companies. Depending on the market these individuals can pay a premium for your property but in most cases it would be greatly discounted. They are primarily attracted to property that has to be completely renovated, lots that have the potential for development, or properties that will need to be knocked down. These Real Estate construction companies are easy to deal with but they're also in the business to earn money and will never offer the full retail value of your property. These entities are also difficult to find but they're not as difficult to find at the hedge funds.
Lastly, we've got individual cash buyers. Some individual cash buyers prefer to market for properties and will actually purchase a property cash but it has to make sense for them as many find themselves in the business to generate income as well. There are others who are people who simply desire to buy a property for themselves and their families and have the cash to do it. It is rare to find someone like this but when they do come along and offer something for your property it's best to take them seriously. When you were consulting with an individual cash buyer you will know because the same person you speak with is the a same person who will see the home and buy the house from you. This would be an ideal situation and you need to learn the best ways to spot these individual cash buyers.