Real Estate Consultant · Houston, TX · Member since 2019 · 5 posts · 1 vote
I am relatively on the newer scene in the past year in real estate investing. I've been around it for quite some time and I am just now hearing about IBuyers. Are these companies similar to the Wall Street Investor groups that are capitalizing on a lot of investment properties?
Contractor · Magnolia, TX · Member since 2016 · 279 posts · 155 votes
7y
I'm not sure what you're asking, but I work for an iBuyer and I can answer your headline question: yes, they're on the rise. We make offers on over 4,000 homes per month in the Houston market, and we've been active in the market less than a year.
We're not really competing for the same sellers as typical investors, though, since we buy basically at retail. The vast majority of our sellers just want to avoid the traditional sales process; they're not "distressed" sellers in the usual sense, and they wouldn't for a moment consider an offer at 70% of ARV less repair value.
So, long story short, yes iBuyers are on the scene, but no, you shouldn't be worried about them since they're not direct competitors. Hope that helps.