Ever wondered about those “We Buy Houses - Fast Cash!” signs?

Ever wondered about those “We Buy Houses Fast Cash” signs stapled to telephone poles? Well wonder no longer, this is what they are and why people post them - enjoy! Add me on Instagram / Snapchat: GPStephan

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So lets start here: the purpose of these signs is to attract people who NEED to sell, and NEED to sell fast - often in less desirable, or up-and-coming areas, and often at a discount to market value. These signs are also called Bandit Signs. These areas are more likely to find distressed sellers who donʼt have the luxury of waiting around for an offer, canʼt come up with cash to perform any repairs, or might only be weeks away from losing the property to the bank - and they NEED to sell ASAP and take a loss from what they could otherwise get in any other scenario. The purpose of the signs is to attract sellers who are desperate to sell, and don’t mind taking a discount to sell quickly.

But whoʼs on the other side of the deal, whoʼs the one actually buying these properties? These are the three types of people:

First, the wholesaler. They will evaluate the property and negotiate a price to buy the home, usually with an assignment clause, allowing them to transfer the deal - and the price - to someone else, for a higher price than they’re in contract for. This gives them the OPTION to buy that home at the pre agreed upon price, and then they can ASSIGN that deal to someone else for a profit.

The second type of person buying these properties are simply individual investors. These are people, like me, whoʼd like to cut out the middle man and cut out the competition. They place these signs to buy properties directly from the home owner, saving them time, commission, and hassle of selling and listing the property. The homeowner will sell the property less because they have the convenience of not dealing with a formally-listed sale, they donʼt have to pay 5%-6% fees to a Realtor, and the investor can save on all of those costs by making the sale as timely and efficient as possible.

And the third type of person posting those “We buy houses” signs are larger companies who typically give a quick close, cash offer - these are the most efficient of the ads. They can typically give a hard offer within 24-48 hours and close within a week or two. In exchange for this, theyʼll typically want a discount of 10-40% from market price. Once they buy the property, theyʼll do a quick renovation and put it back on the market for a profit. Rinse and repeat. These companies are often well-oiled machines when it comes to finding properties and making offers, and their “WE BUY HOMES CASH” signs are a very high ROI investment to getting motivated seller leads.

And that is exactly why you see “WE BUY HOMES CASH” signs posted around neighborhoods.

For business inquiries or one-on-one real estate investing/real estate agent consulting or coaching, you can reach me at GrahamStephanBusiness@gmail.com

Suggested reading:

The Millionaire Real Estate Agent

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The Millionaire Real Estate Investor

How to Win Friends and Influence People

Think and grow rich

Awaken the giant within

The Book on Rental Property Investing

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