Posted on 01/12/2019 1:45:14 PM PST by SteveH
i often get us mail flyers offering cash for my home.
the people all seem (no exceptions) to be white anglo saxon married couples.
i personally know of exactly zero white anglo saxon couples with enough money to buy my home.
so who are these white anglo saxon couples with money to burn and who just happen to take interest in buying my home??
i admit to being a bit lazy. but i can also be a grammar nazi; those types seem to be even less welcome on FR, no matter how grammatically correct they may be and no matter how polite they are (ask me how i know).
i wrote “seem to be” but i actually intended to convey “claim to be.” i think the problem might have been that i was interrupted in my first attempt at the post, lost the first draft, had to start from scratch, and merely forgot to invoke the correct phrase.
in any case, i did not claim that they actually *are* white anglo saxon couples, just that they *seem to be* white anglo saxon couples. to bastardize a reasoning by a famous recent president, imho it all depends on the meaning of the word “seem.” i meant it in the sense of “claim to be” and so please interpret it in that manner. it should be fairly apparent that i don’t go out and meet all of these people just because they deluge me with offerings to me or the current resident on postcards; for all i know, they could be very intelligent golden retrievers or very retarded space aliens. and anyway that is one thing i am trying to find out (duh) with this post, namely, who really are these people? i never claimed i believed what i read on the cards and letters.
sheesh. give. it. a. rest. already.
“They’re real estate wholesalers.”
ok. but i still wonder where they get their capital from.
maybe a doctor/lawyer collective with spare cash sloshing around? or the rich chinese with deep pockets?
“Some people have lines of credit on their existing homes or stock portfolios”
so, anyone with a reasonably flexible stockbroker and a reasonably large stash of stock can do it in theory, especially if they knock on doors offering $0.40 on the dollar and sell to real estate brokers or retail (eg through real estate brokers or help u sell).
ideally you would want to unload quickly, eg within 30 days of purchase, perhaps enough time to slap a coat of paint on the house and maybe 1-2 easy contractor fixes. this would require lining up a trusted reliable painter and/or contractor.
what would be the major downside risks? maybe a dip in the stock market, or the economy, or the house has a hidden problem such as mold requiring a complete teardown and rebuild (that would be bad imho... there should in theory be a title search and a professional assessment prior to purchasing the home; those take time and i would think would tend to muck with panic selling).
iirc a title search and an assessment could take about two weeks if done concurrently. meanwhile someone else could scoop up the house with a slightly higher offer (?)
“...they make money by shorting the seller, by delaying he sale until the buyer gets desperate and offer less money than the home is worth - there are a dozen variations of the same idea. China is not involved - grifters are.”
by locking in the seller to the single buyer in some sort of exclusive agreement?
wow wow wow, wonder why offer double value in cash there?
“Yep. I’ve read a few of those how-to-make-big-money real estate books. It all boils down to one thing: Find a home owner who is in serious trouble (divorce, health issues, etc.) then take advantage of him.”
aha
is that so immoral though? no one forcing the seller to sell. i suppose the crux of the pitch would be something like cash RIGHT NOW...
(btw sorry about using all of those caps lol)
I meant no offense, was just trying to point out that many times appearances can be deceiving, even if you would have met them, but when they send out letters, they could be anyone.
There are even legitimate investors who buy property, do some remodeling and resell it. Which is OK, as long as they pay normal market value for the property in its current condition. But I wpuld be very cautious. I have heard of cases where the buyers were trying to take advantage of the sellers, ultimately trying to force him to accept much less than the property is worth.
But unless you get an actual offer on an offer form, I would not take these so-called offers seriously. You could call them back and talk to them, but just beware.
come to my snackbar
Er
come to my seminar
Not sure but my friend says the people on her mom’s street are all elderly and have lived there for years. Homes are all paid for and none of these elderly are willing to sell.
These homes are under 900sf, very small. I have been in her Mom’s house and have seen for myself. Why someone would want to buy these older homes is beyond me.
, ? , , - ',! '.....'. " !"
Huh? I thought I explained this the first time.
The wholesaler signs a contract to purchase with you. Such contracts normally give the 'buyer' 30 days to come up with payment in full. The wholesaler then has 30 days to procure a true buyer for your property, or buy it themselves. If they've struck a good bargain with you, it won't be hard for them to locate a willing buyer.
When the wholesaler finds a buyer, they legally transfer the contract to purchase to the buyer for a fee - usually $3,000 to $5,000. That's how they make their money.
Wholesalers are already advertising to a list of active buyers who are always in the market for investment properties. Essentially, they sell the contract to an investor, who becomes the actual buyer of your property.
In a nutshell, wholesalers do the grunt work of locating and securing good real estate investment opportunities for those who have the cash to buy, but don't have the time to find the deals.
There are several different ways that wholesalers do this. The most common technique is the 'bandit sign'. These are the cheesy little signs you see on street corners that say, "I buy houses for cash". People who want to unload distressed properties that aren't suitable for the normal retail market see these signs and dial the number.
Another method is to knock on doors of obviously distressed homes to see if the owner would be willing to sell. That's a lot of work, but it's often very effective.
A third method is to put out cards or flyers offering to pay cash for homes. It's an energy intensive way to find deals, but it does work.
Bottom line -- if you own a distressed property, you can expect to have wholesalers showing up to make you offers for it.
it sounds as if they want to raze the small homes and put up 4 story condos... ???
4 story condos are the current rage in san jose, california...
h1-bs all love them and most wonder why everyone does not think and do exactly like they do and move into similar condos also, lol.
(i dislike condos but i gotta admit they are convenient if you don’t mind losing your individuality.)
“Welcome to the internet, where men are men, women are pretending to be men, and that girl you’re propositioning is a man.”
dude, how did you find out about me on that site? hahaha
“I meant no offense, was just trying to point out that many times appearances can be deceiving, even if you would have met them, but when they send out letters, they could be anyone.”
OK, i just presumed that my skepticism on senders’ identity was on very evident public display.
“There are even legitimate investors who buy property, do some remodeling and resell it. Which is OK, as long as they pay normal market value for the property in its current condition. But I wpuld be very cautious. I have heard of cases where the buyers were trying to take advantage of the sellers, ultimately trying to force him to accept much less than the property is worth.”
yes. thanks.
aha!
$3-5k is not bad income.
i wonder where to find these “buyer lists”
i also wonder why the buyer list buyers would want distressed properties. hmmm...
and what is a distressed property? the seller is anxious/distressed? or the property is rundown? or either/or?
anyway thanks for the explanation, very helpful
i wonder where to find these “buyer lists”
There no such thing as a 'buyer list'. A wholesaler slowly builds a contact list of buyers/investors through networking and advertising in places where investors look for deals.
Over time, a good wholesaler will build up a very big list of active investors to do business with.
i also wonder why the buyer list buyers would want distressed properties. hmmm...
Because investors have to purchase properties below market value to make money on the deal.
For instance; I bought a distressed property last year for $72K. I spent another $30K renovating it, which brought my total investment to $102K. The house then appraised for $140K, which netted me $38K in instant equity.
I'm leasing the house now, but if I sell it next year, I will profit no less than $40K on the sale. In the meantime, I'm making $400 a month on the lease.
and what is a distressed property? the seller is anxious/distressed? or the property is rundown? or either/or?
It can be either of those things, or both. Usually it's both.
Right.
I get mail from WBUHs every month, along with mail offers from about 3 similar firms.
My house is in a nice area, but 33 years old. Their offers say they will buy “as is” regardless of any faults; and the offers are a range from about $30k-50k below market value.
Being 76, I’ve considered selling to them; I would have to spend about $20k of my money to make the house suitable to offer for sale. ....Plus, their offers are still about $100k over what I originally paid for the house.
I think so. I was curious once and looked it up online - search something like “We buy ugly homes reviews”
It’s not just old, small homes.
Mine is 2500sf, brick, rear entry garage, large trees, etc.
Market values in my area are ~ $250k-500k.
I still get several offers by mail every month.
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