Home Selling in 38127>Question Details

Keith, Both Buyer and Seller in Memphis, TN

How do I find someone who buys houses for investment property? I have seen the signs that say we buy houses for cash but not sure if they are real.

Asked by Keith, Memphis, TN Fri Nov 11, 2011

I want to move and purchase a house in another neighborhood in the city. I have been in my house for 11 years, I am not interested in the hassle of renting it out and this just isn't a good market for sellers. It seems like more people are interested in renting than buying.

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13
navtajchandhoke’s answer
Most of these signs are placed by Professional real Estate investors Group (PREIG) members who have gone through Real estate investment training and apprenticeship.
They may have multiple solutions to sell your property very fast.
http://www.preigCanada.com | http://www.Worldwealthbuilders.com
0 votes Thank Flag Link Fri Oct 12, 2012
I recently sold a house for a gentleman with a similar situation. I would love to chat more with you. Even if I can't sell it I might know some investors interested in buying and I could put you in contact with them. Feel free to email me at dustie@FTRmemphis.com
0 votes Thank Flag Link Wed Nov 6, 2013
Investors aren't known for being willing to pay market price or anything close to it. These signs often target people that are desperate situation, are unfamiliar with the local market, and don't have an accurate appreciation for the value of their property.

People attracted to these types of opportunities(???) should take great caution to not become more of a victim than they all ready are.
0 votes Thank Flag Link Sun Aug 18, 2013
0 votes Thank Flag Link Sun Aug 18, 2013
You have nothing to lose by calling one of these numbers. Generally it is an investor looking to buy property for .50 on the dollar ~ or thereabouts. On the other hand, there ARE people that don't want the bother of putting their house on the market, fixing it up, staging, working on the landscaping for curb appeal, & PRICING IT RIGHT. It sometimes is easier to let the investor do all that & absorb that cost.
0 votes Thank Flag Link Sun Sep 23, 2012
A few of my clients are investors, if you would like to email me the specifics of your home, I can forward the listing to my investor clients. jackie_d@aol.com Jackie O'Kelley, Remax Memphis
0 votes Thank Flag Link Sun Mar 11, 2012
Many areas have Real Estate Investors Clubs where Investors come together to exchange information. This might be a good place to find legitimate contacts for investors who are in the market to buy. If that's the way you decide to go, here is a link that may help get you started to find such a group: http://www.reiclub.com/real-estate-clubs/Tennessee.html.

>>> Please keep in mind though that investors are generally looking for properties that are sold significantly below market value, because that's how they make their profit and the investment worth their while.

Either way you go, I would recommend to start out by getting a Market Comp Analysis from a good agent in your area so you know what your home is currently worth, what similar homes recently sold for in your specific area, and how long they were on the market before they sold. This will give you a good basis to make an informed decision and to choose an option that works for you.
0 votes Thank Flag Link Sun Nov 13, 2011
I have been working with quite a few investors recently. Most cash buyers (i.e. investors) will START pricing your home at 65% of market value. If there are any updates or repairs that are needed, they will discount it off of the assumed 65% price. If they can't get it for 65% (MAYBE 70% if VERY little needs to be done), then it is just not worth it to them when there are so many homes in this market that they can get those returns.

The reason that there are more people interested in renting than buying is because their credit is shot or they don't have the savings for a down payment.

Over 25% of homes out there today are underwater. Those that got foreclosed on or did a short sale on their home cannot buy for at least 3 years. Where are they going to live? In rentals.

Those who lost their job recently cannot show steady employment, and thus do not qualify for a mortgage. Where are they going to live? In renals.

Rentals are hot right now. If you have the cash for a down payment without selling your home, I would suggest that you at least consider renting your home out. Consult with a property manager in your area if you don't want to hastle with collecting rents and doing repairs. Also, they can tell you what rental rates in your neighborhood are. With 11 years in your home, you should be able to put a nice part of that monthly rent directly into your pocket and let it help pay for your new mortgage.

Best of luck in what ever you do.
0 votes Thank Flag Link Fri Nov 11, 2011
They are on every street corner. Probably less than 20% of them are legitimate cash buyers. Most are wholesalers or will use private or hard money lenders for a purchase. If you contact a few investors, ask them to prove they have the money in their personal or company account to fund the transaction....otherwise they're simply buyers who will still need to get a short-term loan approved by someone else before they can purchase your home. And keep in mind that if you want a investor to pay cash for your home, you will need to discount your price signficantly. Investors who pay cash don't pay retail as they're in the business to turn a profit of each purchase, just as most sellers hoped to do before the economy cratered.
Web Reference: http://www.phgbrokers.com
0 votes Thank Flag Link Fri Nov 11, 2011
You're right about it not being a seller's market, at least if you're comparing today's market to years prior to 2007. Although we've seen a continued downward trend in sales and selling prices within the past couple of years, homes are selling, buyers are buying, and banks are lending. Anything will sell eventually, the keys today, are pricing, location and condition. Pricing and condition are the variables, condition will be a key factor in any pricing situation and to get the best price, your home has to be in the best possible condition. It's your decision on what you want to do to get it to that point. Location on the other hand is truly a major consideration, but, you can't do anything about that, the house is where it is, you just can't pick it up and move it.
From June 1 to today, there have been approximately 135 homes listed and sold in your approximate area. The selling prices of those homes have a wide and variable range. The approximate high end was around $112,900.00 and the average was approximately $17,605.00. These numbers are examples only, of what may be happening in the location you've indicated your property is in and cannot be relied upon as an accurate market reflection of the value of your home, or price it may bring on the market. You should consult a real estate professional for more specific information about your specific property.
There are plenty of investors out there who are buying. Generally investors, and others who offer quick sales or some other type of program to get you out of your home quickly, are not particularly interested in giving you top dollar for your property so beware of what you might get yourself into. Get professional assistance.
Also keep in mind, this market today may be with us for the next 2,3,5 years or more.

Always My Best,

Michael Bellaire, Broker, ABR
mbellaire@crye-leike.com
0 votes Thank Flag Link Fri Nov 11, 2011
I agree. Use a licensed real estate agent . Don't expect the "cash for your house" guys to offer you anywhere near what your house is worth.
Web Reference: http://spake.com/contact
0 votes Thank Flag Link Fri Nov 11, 2011
"we Buy Houses" are usually short sellers looking for people that HAVE to sell. They can be very helpful. I would find an agent that has investor buyers and contact him or her.
0 votes Thank Flag Link Fri Nov 11, 2011
Hi Keith,

If you have been in your house for 11 years you should have some decent equity in it so you may not want to go the route of selling to investors only. It is true it is not a good market for selling right now but if you sell to an investor you will not get anywhere near what you probably want to sell your house for. Also, please DO NOT contact anyone that has a sign on a post that is offering to buy your house for cash. They are not out for YOUR best interests. If you can it is best to consult with a realtor and receive professional advice on the marketable value of your home and then what you will need to do in order to buy another home. If you would like some help feel free to give me a call. Thanks!
0 votes Thank Flag Link Fri Nov 11, 2011
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