The Truth about those “We Buy Houses Ads

The truth is that they WORK!

Investors use them to locate motivated Sellers; Sellers call the numbers to sell their property fast, as-is and with no hassles on their side. It’s Win-Win for everyone!

That is, when everything goes right. Here’s what happens when you call one of those numbers:

1. The investor or more likely their answering service takes the call and screens with the following questions:

   1. Why are you selling?

   2. Do you owe anything on the property?

   3. Will you consider owner financing?

   4. Are any repairs needed?

   5. When can they go see the property?

2. The investor will immediately start their research on what other homes are selling for in the area at full retail prices and how long is it taking for those homes to sell.

3. The investor goes to inspect the property in order to make an estimate of repairs needed for either resell of if they plan to keep it for a rental property.

4. The investor has a standard formula for how much they can offer. They have to take into account their purchase, repairs, holding costs, closing costs or costs to rent. Their offer will be based on facts, not emotion, so don’t be too put off if the offer is thousands of dollars different from what you had in mind.

5. If you accept their offer, a sales contract is signed (often on the spot).

6. The sales contract is taken to a local Title company to ensure the property can be sold with no issues.

7. Once a Title Policy commitment is issued, and payoffs from taxes and/or any mortgage liens are received then the Closing can be scheduled to transfer ownership of the property. This process can take anywhere from a few days to months if any Title issues are discovered.

8. A Closing date is scheduled and the property is transferred to the Buyer and you get PAID!

So what’s the catch? The catch is that every investor has a formula that they cannot ignore when making their offers. If they do, they risk losing large amounts of money and going out of business. So while you may think they are just trying to lowball you, the truth is that they can only offer you 60 – 70% of “After Repair Value” or ARV of the home. The ARV is the number you get when you estimate what a property will sell for in tip top condition with no repairs needed.

They also know that motivated Sellers usually want to sell As-Is and FAST. Experienced investors usually have no problem doing this, unless there are some Title or other issues (I.e probate, tax liens, etc.) that take longer to clear up.

And here’s the real truth about the majority of those “We Buy Houses” ads that no one wants to tell you:

90% of them are not from an Investor who is buying your house!

Yes, the majority of those signs and ads are from real estate “Wholesalers” who are just trying to locate discounted properties for other investors! There is nothing wrong with this and it’s certainly not illegal but you need to make sure that the person you are dealing with is capable of fulfilling their side of the contract – or finding someone who can.

Wholesalers offer a valuable service to both Sellers and investor Buyers. With so many potential properties out there, Wholesalers help filter through and qualify leads for investor Buyers. They meet with the Seller, estimate repairs do much of the due diligence to help save time for other investor Buyers. Some investor Buyers are capable of purchasing dozens of homes each month so Wholesalers are critical to help them scale their time and buying process. When a Wholesaler is involved, the Closing process is exactly the same with one extra step:

1. The Wholesaler “assigns” their position in the sales contract to the investor buyer for a fee.

That’s it! That is all there is to it and the best part is that the Wholesaler is paid by the Buyer, not you!

It is important that you know whether you are dealing with a Wholesaler so don’t be afraid to ask them if they will be the one closing on the property or another investor. Wholesalers only have a short period of time to find an investor to take their position in the contract. Most have thousands of Buyers and not enough properties but if you are unsure about the Wholesaler’s ability to find someone to assign the contract to, you might want to keep calling other We Buy Houses numbers.

If you do end up calling several advertisers, you will find that the offers will generally be in the same price range. I can give you more tips for negotiating with Buyers, whether Wholesalers or traditional Buyers but I don’t want to give all our secrets! Just send me an email and I’ll be happy to send you those as well.

So yes, we are Wholesalers but we also do buy properties directly that fit our business model. We’re happy to give you an instant offer as soon as we see the property and we can close quickly. So call us today for fill out the contact form below to schedule a free property inspection.

We look forward to working with you!

Riverwolf Properties

713-322-0850

info@riverwolfproperties.com

www.riverwolfproperties.com

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