“We Buy Houses Fast!”

If you can take a drive around the state using any major road you won’t miss signs all overwritten; “We Buy Houses Fast!” You’ve probably seen these signs one too many times, and suddenly you find them loud and sort of obnoxious. What lures most sellers to these companies is the quick cash settlement. But have you ever taken time to understand what they are offering?

Real estate investors are responsible for all these signs in case you didn’t know. They come in various flavors, but the sings belong to property flippers or wholesalers looking for incredible deals. So if you’re in the real estate market searching for top dollar, these might not be the kind of people you want to deal with when selling. However, if you’re that guy who finds it a hassle dealing with all the repairs, and gets irritated with the thought of pleasing home inspectors so that they can give you a great report, then you should give them a call.

All you have to do is to pick up your phone and dial the number on the sign. You’re guaranteed a quick sale from investors who’ll give you approximately 50 to 60 percent of what your house is worth in pristine shape. The probability of being offered something higher is almost zero. Do you want to know why?

For a typical buyer, during a purchase, he or she has to settle different costs associated with the transaction. So on top of the amount you’ve budgeted to spend on the property, you have to add about 15 percent that will cater for other costs. These include the taxes, transfer fees, attorney charges and once you close the deal, you have to compensate the real estate agent.

The same applies to all the investors out there. When they decide to invest in your property, they already know once they flip the house and eventually sell it they will have to settle the same costs. Plus, on top of all that, they also have to deal with the insurance, interests, utilities, and taxes. The general misconception is that all property investors have ready cash to spend. But in reality, they also seek funds from lenders at a charge of twelve to sixteen percent.

So if you add the holding costs that account to ten to twelve percent and put things into perspective, you can tell that before an investor thinks about investing they already know that they are down twenty-five percent. At first this might seem high but in essence, the average gross margin is between forty to fifty percent, and that’s similar to other industries.

The real estate business is not a cheap one. Property investors keep on struggling daily looking for ways to keep down the overhead costs and all. That might be the primary reason they use these signs. So if you find them a tad bit annoying, just put yourself in their shoes. You’ll meet guys that are more skeptical of these business people, and that’s okay because it could be weird for an individual not to be leery when he or she wants to invest so much money.

Lynk Capital, Inc. would love to hear from you. Contact us today and listen to what we have to say.

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