Investor · Colorado Springs, CO · Member since 2015 · 3 posts · 0 votes
I have two duplexes in NE Minneapolis. I receive numerous offers (phone, text, letters) to purchase these properties for cash/as is/quick closing. My main question is will these offers come in close to market value? Any cautions I should be aware of? If I went this route, should I have a one day open house and invite all these investors and see who makes the best offer? Other ideas?
If you need the money then go that route. If you don’t need the money and your looking at a more professional setting and get the best to closest market value then hire a RE agent. Those cash buyers most of the time are looking for “owners with problems” your post sounds like your in a ok situation but looking at your options. RE agent is you best option unless you have problems .
If you need the money then go that route. If you don’t need the money and your looking at a more professional setting and get the best to closest market value then hire a RE agent. Those cash buyers most of the time are looking for “owners with problems” your post sounds like your in a ok situation but looking at your options. RE agent is you best option unless you have problems .
I have two duplexes in NE Minneapolis. I receive numerous offers (phone, text, letters) to purchase these properties for cash/as is/quick closing. My main question is will these offers come in close to market value? Any cautions I should be aware of? If I went this route, should I have a one day open house and invite all these investors and see who makes the best offer? Other ideas?
NO. Those are wholesalers, who will lowball you and then resell the contract for that value to a real investor. However there's nothing saying you can't have a bunch of them come by and give you an offer, just know that any contract they want you to sign that includes "or assigns" after the buyer's name will just be resold to someone else and they may not actually be able to close. They claim to be cash buyers, but most of them have no money of their own, wholesaling is taught as a technique to flip homes without money. Wholesalers will also resist putting down a reasonable earnest money deposit.
Best way to get best value is contact a realtor and list it. You can have "curb offers only" meaning they don't get to see inside until their offer is accepted, that way you don't upset your tenants with lookie-loos.
Not all cash buyers are wholesalers, I can speck for myself, I promote with postcards and letters and text messages to home owners to buy their property as a real investor. But I'm not offering market price. Again goes back to my 1st post, if you are in need wholesalers or real investors will get you out of your situation. I don't understand why a lot of BP followers have negative views on wholesalers???? On the flip side since you buy everything market price how's your ROI? I've never heard of an investor buying all their properties on market at market price, maybe if your at the beginning of your journey. I always tell my follow friends to always look at all options and wholesaling is great on all sides! I disagree with people saying why would you sell your house to a wholesaler when you can do it yourself well the fact it, that home owner doesn't have the database like a wholesaler does to get them out of their property or if your roof or kitchen is blown out it's pretty hard to get an agent to sell your house.
Here is an example that came across my desk, house in Detroit on a street when I own a house prices going for $50k on market, a listing came by for a house at $17k so of course I called asap, well guess what the problem was? There was a fire in the kitchen and now the owner wants out, after talking with a “the professional RE agent” I got them down to $10k at this point do you think the owner would have a better chance wholesaling it? It’s been on the market for 120 days and still no deal, I can certainly tell you that the wholesaler would get rid of that place in a heartbeat.
You can negotiate on price or terms. One of those terms is cash vs financing. Getting cash is important to some people as they can sell their property faster and don't have to worry that the buyer won't be able to get a loan. This buyer is trying to find people who need cash and speed. If you are one of them, then certainly give them a call. We don't get something for nothing, so the offer price will be lower than market value to compensate for the fact that you will get a cash offer. That's not a bad thing, but might not be what you need.
Thanks. These responses are helpful and appreciated. If I get ready to sell, I'll need to see if a market value sale, the cost of a Realtor and possibly some light repairs will merit what these other offers might bring.