WE BUY HOUSES - ever seen a sign or advertisement like that?

I am sure you have, that is unless you do literally live under a rock. These signs have shown up everywhere, even on TV and Radio and I bet it won't be long until you start receiving SPAM email from them.

Now before we go about cursing and hating all these guys for littering up the road sides, lets take a look at what they truly do. Can whoever is putting out these signs really buy the houses they advertised for? Seems like if anyone had that much money to buy all the houses in the area he would be on vacation, or swimming in his money in the vault (anyone remember DONALD DUCK?) and not plotting advertising to buy houses.

Real Estate Investors -The hidden faces behind these signs.

Investors are in the business for one reason and one reason only, lets be honest and that is to make money. Some will be successful and many more will go bankrupt trying and end up back at their day job, wondering what went wrong. What separates the haves and have nots , is the ability to buy houses. Wait a minute we are getting off track here, this article is about who and what these ads are about and more importantly, can they really help me out, can anyone really close on my home in 3 days? I thought it took weeks if not months to close a real estate transaction. The truth is, a closing can take place within a very short time (as soon as you can get a a closing attorney's schedule) if the buyer is able to pay for it. What generally takes so long in a real estate transaction is the underwriting process a mortgage company will go through. This involves checking every detail of an applicants credit, employment, accounts, reserves blah blah blah, as well as assuring their security in the property by performing an appraisal (to be sure they aren't lending 200k on a house only worth 150k), this prevents a bank from losing money if a default takes place. (Of course this doesn't always work but that is another article in itself)

So what these investors (or should I say advertisers) specialize in, is being able to buy property very quickly. It is not because they are multi-millionaires. In fact surely some of them make no more money than what they need to get by. It is because these investors work very hard to line up private investors who are willing to invest hundreds of thousands of dollars in them, at a ridiculously high interest rate I might ad. So these investors are able to buy for cash because they already have it lined up. What these investors do with these properties is anyones guess, some hold them as a long term rentals. Many more will bring in their contractor and do a complete renovation with the ultimate goal being to sell to an owner/occupant buyer. Many more may be speculating that values will soon increase and are hoping to catch the wave of increasing values. Just like any investment it is a risk. But yet again that is another article. I see myself writing plenty of articles very soon.

Taking a look at why someone may need to sell their home right away, we can think of many reasons. Foreclosure. One word. That right there is the driving force behind hundred to thousands of people everyday. People in default on their mortgages know that the clock is ticking until they are evicted, leaving them with limited choices. They can try to sell their house through an agent for top dollar, but most everyone knows how long that can take, the problems that come up with inspections, appraisals and financing, and on top of that they still have closing costs and an agents commission to pay if they were fortunate enough to sell. Another common reason is inheriting an estate. If you have been an executor of a will, then you understand the hassles that can come up, imagine if you lived out of town or across the country. More reasons include; property in need of extensive repair, relocating, loss of job, divorce the list goes on and on.

So why doesn't everyone sell their house to these people and bring an end to the real estate brokers? Good question, maybe they will, not likely though. The truth is however, that the we buy houses business is no different then any other commodity type business. Look at used car dealerships, I believe this is the most relevant industry, although a much simpler one. The main goal is to buy a vehicle cheaper then what they can sell it for. Buy low, sell high, great advice for anyone looking to make money. The people the real estate investors want to buy from are not looking for top dollar, they are looking for quick, cold hard cash. Who isn't looking for cold hard cash anyways? I know I always am. (don't ask me why they call it that, since it is neither cold nor hard) Whatever their reason for selling quickly is does not matter, what matters is they have a problem and they need to solve that problem, and from what I have seen cash solves almost every problem, at least temporarily. That is exactly what these people offer and is the number one benefit of selling to these investors. This is a viable way to sell property and one that can save you untold amounts of stress.

So the next time you see one these ads, now you will know who put it out, how they can help you and exactly what it is they do.

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