We Buy Houses Fast Cash?
Have you ever wondered about those signs that say “We Buy Houses Fast Cash” in the intersections of your neighborhood? Well, you don't have to keep wondering, here is the reason why they are there and why people post them.
Let's begin!!! The main purpose of those signs is to get the attention of people who NEED to sell, and NEED to sell their house fast. Often in less wanted, or up and coming areas, and often at a considerable discount to market value. They are commonly called Bandit Signs. In these areas are more likely to find sellers in some kind of distress and who donʼt have the time and money to wait around for an offer. They are unable to come up with cash to make any repairs, or many times they are days away from losing the property to the bank. So, they NEED to sell As Soon As Possible taking a loss from what they could otherwise get in any other scenario. As you can see the purpose of the bandit signs is to attract people/sellers who are in desperation to sell, and because of the circumstances, they don’t mind taking a discount to sell quickly.
If your question is... Whoʼs on the other side of the deal or who is the person/entity buying these properties? OK, these are the three (3) types of people buying houses under these conditions:
1) Wholesalers. They will go through a very specific evaluation process of the property and then negotiate a price to buy the house, usually with an assignment clause which allows them to transfer/sell the deal to someone else, for a higher price than they’re in contract for. This way gives them the OPTION to buy that house at the pre-agreed-upon price, and then they can ASSIGN that deal/contract to someone else for a profit.
2) Individual investors... are people, like me and many others, whoʼd like to cut out the middle man and cut out the competition. We place these signs to buy properties directly from the homeowner helping them saving time, commissions, and the hassle of selling and listing the property in multiple listing service. The homeowners will sell that property for less because they have the benefit of not dealing with a formally listed sale, they donʼt have to pay 5% to 6% fees to an agent (Realtor), and the investor is able to save on all of those costs by making the sale as timely and efficient as possible.
3) Larger companies who typically can give a quick close, cash offer. They can typically give a hard offer within 24 to 48 hours and can close within one week or two. In exchange for that, they'll typically want a discount of 10-40% from the market price. Immediately they buy the property, theyʼll do a quick renovation and put it back on the market for a profit. These companies are experts when it comes to finding properties and making offers, and their “WE BUY HOMES CASH” bandit signs are a very high Return On Investment while getting motivated seller leads.
And that is the reason why you see “WE BUY HOMES CASH” signs posted around corners, stop lights and intersections of your neighborhoods.