Now let’s get one thing 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 acquire your property. Most of the times your phone number and call conversation is recorded, stored and marketed to 10’s or hundreds of other individuals looking to get a great deal. This is what transpires when you interact with a marketing or list building company. Once you place your first call people will continue to call you on a daily or weekly basis for months or years afterwards, even when you sell your property. You’re going to want to avoid this outfit or if you call them, use a throw away number.
The next variety of entity is what we’re going to call a middleman. These are typically individuals that have recently attended a boot camp, class or seminar about getting rich in Real Estate. In many 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 produced 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 relates to purchasing property. If you end up working with this person ninety nine times out of 100 times you will find yourself losing time and not even signing a contract. In this particular 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 accomplish 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 do this 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 personally.
Next on the list are Real Estate Investment Trusts also called REITs or hedge funds. The chances that you will actually encounter this kind of group or anyone representing them are slim to none. They normally deal 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 100 percent of the actual value of the property in its as condition. These outfits are aiming 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 in order to gain from their activities.
In addition to everything that I have listed above we’re now going to visit construction companies or real estate development companies. Depending upon the market these individuals can pay a premium for your property but in most cases it would be greatly discounted. They are primarily interested in property that ought to be completely renovated, lots that have the potential for development, or properties that will need to be obliterated. These Real Estate construction companies are easy to deal with but they’re also in the business to make 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 mutual fund.
Lastly, we’ve got individual cash buyers. Some individual cash buyers like to market for properties and will actually purchase a property cash but it needs to make good sense for them as many find themselves in the business to generate profits as well. There are others who are people who simply want to buy a property for themselves and their families and have the cash to perform it. It is rare to find someone such as this but when they do come along and offer something for your property it’s best to take them seriously. When you were speaking 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 ought to learn how to spot these individual cash buyers.