Richard, Home Seller in Sacramento, CA

what's the catch with these home-selling website that promise "sell home fast" ?

Asked by Richard, Sacramento, CA Thu Apr 7, 2011

http://www.sellyoursacramentohousefast.com/
http://www.yourhouseintocash.com/we-buy-houses/california/sa…

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6
Dorene Slavi…, Agent, Torrance, CA
Fri Apr 8, 2011
Basically these are investors wanting to make a profit on your home. They will want to buy for very little, in order to sell for more.
0 votes
Phil Rotondo, Agent, Melbourne, FL
Fri Apr 8, 2011
Richard;
There is no catch.
Quite simply - Buy Low, Sell High.
Web Reference:  http://www.321property.com
0 votes
Jim Walker, Agent, Carmichael, CA
Thu Apr 7, 2011
DP that is one of the best explanations of wholesaling in a brief post that I have seen. You persuaded me on several points. One difference of opinion that I have, though, is that while the average training of active licensed agents who work heavily with investors is different from unlicensed bird-dog wholesalers, it is not inferior.
0 votes
Dp2, , Virginia
Thu Apr 7, 2011
Basically, they're investors who buy properties at wholesale prices, and flip them to other buyers (also typically investors) also at wholesale prices. This process is also called wholesaling. How they finance the transaction--whether they buy the properties with their own cash or assign them to other buyers in their buyers lists--is of no concern to a motivated seller. The only thing that really matters is if they can perform on or by the deadline.

Daisy chains typically result from newbie investors who haven't mastered the process of wholesaling. Everybody has to start somewhere, and everyone has made at least one mistake before. Many agents and sellers understandably would prefer to avoid any daisy chains, and sell directly to the investor/end-buyer. Yet, they fail to realize that many experienced investors prefer to qualify/screen their deals via the wholesalers. Stated another way, the wholesalers are the gatekeepers.

Yet, some investors opt to work with an agent to feed them leads. The key difference is that a wholesaler delivers deals gift-wrapped, ands/he has already run the numbers and comps. S/he has already set up escrow, so all the investor/end-buyer has to do is conduct his/her due diligence and close. Most agents are neither trained to run the numbers, nor interested in learning to run them.

On the other hand, some agents (especially ones who are also investors) either wholesale their own deals, or learned how to work with wholesalers. Either way, that agent will close more deals with investors.

BTW, some wholesalers might be willing to offer you 90% of your list price provided your list price doesn't exceed the current market value of your property.

This solution isn't for everyone. Many sellers want to receive top dollar for their properties, so they're really looking for retail buyers--not investors.
0 votes
Jim Walker, Agent, Carmichael, CA
Thu Apr 7, 2011
They expect to buy your house for less money than it is worth. That is okay if they really are cash buyers able to quick close. Be forewarned, though, if they insert the clause "and or assigns" in the contract that they might not have the cash themselves but are simply bird-dogging, hoping to resell the contract to another investor in a daisy chain..
Check their proof of funds documentation to see if the cash is theirs, or someone else's.

Ten percent below market value? No way a wholesaler will offer you 90 cents on the dollar.. Maybe 70 cents on the dollar if your house is nearly perfect.
0 votes
Jeanne Stroda, Agent, Baton Rouge, LA
Thu Apr 7, 2011
Richard, I would assume that it is price. Priced to sell, so the property would be priced at least 10% below market or lower! Give them a call and interview them and then another broker and see for yourself what the difference is.
Web Reference:  http://www.jeannestroda.com/
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