We Buy Houses – How Does It Work?

Have you ever seen those late night TV ads that guarantee that without utilising any of your own resources or credit, you will make money in Real Estate? Wholesaling real estate is something they are trying to show you.If you’re looking for more tips, Offer House – Overland Park We Buy Houses has it for you.

Wholesaling, what is it?

It’s all this. You market a driven agent, have the property under contract, and transfer the “rights” to another individual for a commission from that deal. The charge is typically an assignment fee, varying from $2,000 to $15,000. The fee depends on each transaction, the business, and how long the wholesaler has contracted the property for.

Bandit signs are one of the ways to market motivated buyers, which typically say anything like this, “We buy homes, quick, cash, any condition, call xxx-xxx-xxxx.”

In general, you can speak to a wholesaler when you dial one of these numbers, who will not necessarily “take” the house, but will find someone else to buy the property. It might not be a negative thing for the owner of the house, but they are in a position where, for some excuse, they really need to move rid of the property, and don’t even care who buys it.

Concern Areas

If the wholesaler is likely to turn around and sell his involvement in the property to a list of cash investors, there is a risk that the house will not be purchased. This occurs sometimes, and has sadly earned a poor reputation to wholesalers.

This is also the product of many new individuals joining the real estate investment game of “no capital down,” and not understanding what they are doing. And they get an offer from a vendor, and they can’t find a cash buyer because, first of all, it wasn’t even that decent of a deal. Either they didn’t get it at the right time, or their maintenance estimation is a long way off.

Stuff that you should do to secure yourself.

If you’re in a position where you need to sell your house immediately and contact a wholesaler, you should take a few precautions to defend yourself.

Ask for a good, serious deposit of capital. Many wholesalers would want to have the land under contract for $10 or less, but if they do not locate a cash buyer, they are out most of the way for $10. I will apply for a deposit of $1,000 in earnest cash. If it’s a decent deal for them, so why don’t they put up as many, at least?

Ask how many sales they’ve completed. A successful wholesaler acknowledges their figures and recognises how many sales they have made, and they are confident of not walking out of a contract.

Inquire for sources.

Tying all together.

But by now, when you react to one of those “we buy homes” advertisements, you should know what to expect. There are nice wholesalers, much as anything else, and there are poor wholesalers. When selling your home, make sure you do your due diligence, ask questions, and if you have the gut feeling that they are lying to you, or doing anything shady, then don’t do business with them.