You've Seen the Ads - What's the Deal
You pretty much see them everywhere! The signs, billboards, and banners with the advertisement "We Buy Houses." For somebody who doesn't know anything about real estate investing, this might seem like a strange statement. Who would want to buy an ugly house? Who exactly is the "we" mentioned on the billboards and ads? And why are the people behind these ads putting so much money into billboards, etc? Lastly, is this some kind of a sketchy proposition? Let's take a quick couple of minutes to talk about it.
Basically they are looking to buy your house if you are having any of the following issues:
Death of a loved one
Inheriting a home
Need to liquidate assets
Unexpected medical bills or legal fees
Home in need of costly repairs
What's the common denominator here? Well, in most of these situations, people need to sell their homes quickly. And the people behind we buy ugly houses actually want to buy the houses cheap, fix them up, and sell them for a profit. That's real estate investing 101.
"Is We Buy Houses A Scam?"
To answer that question, no, it isn't a scam. Now...is there something sketchy happening though? Again, no, it isn't! Most Real Estate investors actually have your best interests in mind - I should know, I work with investors, am a Realtor, coach investors, and am and investor myself! Here's the thing - every real estate investor operates under the assumption that the more distressed the property, the cheaper they can buy it. It's all about margins.
Unfortunately, that sometimes puts them at odds with what the seller wants, which, of course, is to sell the property at the highest possible price. The reason some investing franchises (and people) have gotten a bad rap is that occasionally you'll find a bad egg who just wants to take advantage of people who are facing one of the situations listed above. But trust me, most investors are just regular people who have chosen investing as their passion and career.
Who are these we buy ugly houses people?
We Buy Ugly Houses is actually a franchise run by a company called Homevestors. By buying into the Homevestors franchise, franchisees get to use the company literature and resources to help them along with their investing career. So when you are calling the numbers you see on the big billboards along the freeway, you are usually being connected to a local franchisee who invests in real estate. To find out more about Homevestors, click here to visit their website. However, there are many smaller. local investors without the franchise as well.
Need to sell your home fast? Look for a win win.
As a real estate investor, I often find myself in a position where I'm dealing with someone who needs to sell their home fast because of some of the same reasons that I mentioned above. Maybe they just got divorced, had a death in the family, or are facing foreclosure. The truth is, many people find themselves in situations that make it difficult for them to continue to be able to afford their home. One of the things that I pride myself on is always being interested in a situation that is a "win-win". Basically that means that at the end of the day, everybody feels good about the deal. (For an example of this, check out the crazy story of a very "smelly" win-win that we had recently.)
Trust you gut when selling your home
At the end of the day, you want to be treated with respect and dignity, and if you encounter any kind of investor who leads you to believe you won't be, move on! To reiterate, most investors are good people who don't want to hurt anybody. But there are some bad apples out there (just like in any business) so if you encounter one, just shake it off and move on. Whether it's We Buy Ugly Houses or Konkle Investments (that's me!), there will usually be somebody out there who can offer you a win-win situation!