You’ve read about the difficulties of selling a house. At every step you face roadblocks. Think about it.
- First you have to make repairs so potential buyers find your house more attractive
- Then you’ll have people coming through the house you still live in, nitpicking every minor flaw
- If you’re lucky, you’ll find someone who bids an amount near your asking price
The process doesn’t end there, either. Not even close. Even after you accept a bid any number of things can go wrong.
- You and the buyer might disagree on contingencies
- In particular, a sale contingent on the buyer first selling his or her home can be enormously problematic
- Mortgage lenders might reject the seller
- The buyer might try to change terms after an appraisal and inspection
- The buyer might let the option period expire, putting you back at square one
With all the complications involved with the selling process, how can we swoop in with an all-cash offer for your house?
We make repairs at scale
Almost all of the houses we buy have flaws, some of them severe. For these houses to sell on the real estate market, they need repairs that can be too costly for many home owners. The most common repairs include:
- Septic and plumbing
There might also be structural issues due to termite damage and other decay. After we buy a house for cash, we start the repair process. It can be pretty intensive and take months to complete in some cases.
Why not make repairs myself?
This is an excellent question. If we go in and make repairs, and then sell the house on the market, then why can’t owners just do themselves?
We buy so many houses every month that we work at scale. That is, because we have so much work that we can get a great deal on parts and labor. An individual home owner will have to pay market price.
The result is a great deal for everyone. Sellers get rid of their houses and have immediate cash. We get a property we can fix up and sell at market price. If we bought one house a month, this might not work. But because we buy so many, we can get prices on parts and labor that make this worthwhile for everyone involved.
We have a stable of investors
Make no mistake: Tom and I don’t have endless financial resources. We’re regular, hard-working folks just like the people we work with every day. This kind of business is impossible to run without a stable of investors.
Our investors help us in so many ways. They give us cash flow so that we can not only make all-cash offers for houses, but also hire contractors to make the necessary repairs.
Of course, we run a business and not a charity, so these investors expect returns. We’re blessed to run a business that can benefit everyone involved: sellers, investors, contractors, real estate brokers, and our own families.