Those "I buy houses cash" signs...

50 Replies

We have all seen those "I buy houses for cash" signs. Do any of you have experience with them? How have they worked?

I began to think that it might be better to create a company name so that when people are ready to sell they can remember the company name instead of a random I buy houses sign. Thoughts?

Originally posted by @Adrien S. :

They tend to work better in C/D areas.

 That is the other thing - they appear to be directed towards people who are desperate. The market I am trying to go for is people who don't have their backs against the wall

Originally posted by @Bryce Betley :
Originally posted by @Adrien S.:

They tend to work better in C/D areas.

 That is the other thing - they appear to be directed towards people who are desperate. The market I am trying to go for is people who don't have their backs against the wall

 Wholesaling in general preys off desperate or ignorant people. The signs are illegal in most cities. It is not just "we buy houses" signs, people with any business can't just litter most cities with signs. I know people choose to break the law and use burner numbers to avoid getting caught, but why be "that guy". If you are not smart enough to make your business successful the legal way, you won't be in business long.

Originally posted by @Joe Splitrock :

 Wholesaling in general preys off desperate or ignorant people. The signs are illegal in most cities. It is not just "we buy houses" signs, people with any business can't just litter most cities with signs. I know people choose to break the law and use burner numbers to avoid getting caught, but why be "that guy". If you are not smart enough to make your business successful the legal way, you won't be in business long.

 For sure - and those signs are misleading on top of that. They say they will buy in cash but are just wholesalers. I am trying to differentiate myself from wholesalers, since I do not wholesale. That's why I thought a company name would help to show that I am legit. 

@Bryce Betley

I would not recommend bandit signs. I used them for a while, many years ago when I was trying to figure it all out.....the second time I had to pay that $500 fine I said to hell with it. Code enforcement is getting a little slicker. They can't trace the number if you use Google voice, but they will call the number and pretend to be sellers. When you show up for the home inspection, you get a ticket...and they won't even give you your signs back!

Since you mention it, what is your plan and strategy? Most strategies work by being able to buy property at a discount. If people who are not willing to trade some of their equity for the speed and ease of the deal, who is your target market? The difference between wanting to sell and needing to sell makes the difference for most flippers, wholesalers, etc.

Originally posted by @Jerry Puckett:

@Bryce Betley

Since you mention it, what is your plan and strategy? Most strategies work by being able to buy property at a discount. If people who are not willing to trade some of their equity for the speed and ease of the deal, who is your target market? The difference between wanting to sell and needing to sell makes the difference for most flippers, wholesalers, etc.

My strategy is pure flips. In a perfect world I want to buy 'grandma' houses, just outdated and old and will take long to sell on the MLS. But I also buy houses as-is with repairs needed. I buy with cash (not hard money or private money, so I can literally make the deal ASAP), therefore I offer speed and buy as-is.

You are right - I need at discount since I am flipping. Problem is, properties on the MLS typically want more $ than off market. Which is why I am trying to find off market deals from people who are wanting to move and sell ASAP, expired listings, don't want to make repairs, going to nursing homes, divorce, etc..

I am thinking about sending postcard size yellow letters to see if anyone wants to sell. I also wanted to include a magnet which people can put on their fridge so when they sell, they call me. But I was thinking the "I buy houses" is so common that I need something to differentiate me from others. Every investor advertises cash, quick, and as-is. 

It seems to me the people who need to sell have disaster properties. I am trying to avoid gut jobs. My target is people who want to sell, but can't because of high price, outdated, or inspection comes back with issues. 

@Bryce Betley

The average person NEEDING to sell....it's not usually that the house is necessarily a disaster (though that's a great reason for rehabbing it...we don't usually rehab pretty houses though I prefer to stay away from guts myself)...it's usually because a person needs the money more than the house. Some of the folks you mention, like little old ladies, especially nursing homes, some would consider back to the wall. Thus you'll hear accusations of being predatory.

Some of the haters around here just can't stand it if you make a great deal off market, though they tout the concept of buying at a discount as foundational to making a profit. Very hypocritical in my opinion.

I just wanted to do a gut check with you. People have their back to a wall for a variety of reasons up to and including "people who are wanting to move and sell ASAP, expired listings, don't want to make repairs, going to nursing homes, divorce, etc.."

(Just BTW, my experience with expired listings is that it didn't sell because it was over priced, and the price couldn't be lowered because they still owe too much).

Every investor advertise cash, quick and as is because that's what folks are looking for. If they aren't they'll simply list. What sets me apart (I like to think) from my competitors is that I am persistent and consistent over time. There are just so many ways to ask "Would you like to sell your house?". 

Good marketing is not like using a vending machine where you drop in a few coins, pull a lever and get a pre wrapped, ready to eat, snack dropped right in your hands, right when you want. It's much more like farming where you prepare the ground, plant the seeds, water and nurture then enjoy a harvest that will feed you all winter long. Refrigerator magnets are great....if they actually put them on the fridge. 

Hope that helps. Thanks for sharing!

Originally posted by @Joe Splitrock :
Originally posted by @Bryce Betley:
Originally posted by @Adrien S.:

They tend to work better in C/D areas.

 That is the other thing - they appear to be directed towards people who are desperate. The market I am trying to go for is people who don't have their backs against the wall

 Wholesaling in general preys off desperate or ignorant people. The signs are illegal in most cities. It is not just "we buy houses" signs, people with any business can't just litter most cities with signs. I know people choose to break the law and use burner numbers to avoid getting caught, but why be "that guy". If you are not smart enough to make your business successful the legal way, you won't be in business long.

 I don't think it's fair to say wholesalers prey off certain people. Plenty of end buying investors purchase properties off market and are trying to get the best deal possible. I know several legit wholesalers and several scammy investors. It's more the person and not the strategy. 

@Bryce Betley

Maybe it's a good idea to think of who you want to buy house from, what situations they're likely in, and then work backwards - why do they want to sell their house fast and take cash. While some might be in desperate needs of money, some might just want to walk away from some problems.

I have CONCRETE PROOF that bandit signs ABSOLUTELY WORK!

OMG people, stop telling people not to use bandit signs.

See, when little stupid investors put up their bandit signs and people interested in selling their house see them, they WILL do a Google search to check it out, see if they are real, and check things out.

Then when they go online they find ME.

Do you have any clue how many calls I get starting with "Hey I saw your bandit sign on the street, how does the process work?"

And I go: "you friggin senile old fart what are you talking about "signs" I am an SEO friggin GENIOUS I don't do ridiculous stupid sig... OOOHHHH my SIGN.. Sure yeah My sign, what does the sign say again? Ohh doesn't matter, my sign yeah that one sure,   yeah that was me sure yup uhhuh me me me, how can I help you."

See this is indisputable proof bandit signs work (for me).

So if you are in CT don't listen to all these people.. keep doing bandit signs.. really!

Originally posted by @Bryce Betley :

We have all seen those "I buy houses for cash" signs. Do any of you have experience with them? How have they worked?

I began to think that it might be better to create a company name so that when people are ready to sell they can remember the company name instead of a random I buy houses sign. Thoughts?

I don't endorse bandit signs since they have to be replaced on an almost daily basis (they get blown over, torn down, etc) It seems you just have a temporary lack of imagination, that's all.  

Here is a list I wrote that I refer to when leads slow down. It's not all inclusive and for some of them you have to kind of figure out what I was thinking because I don't spell it out. But they are trigger thoughts for me. Some of them are  me contacting people who are in contact with people who need/want to sell., (like house cleaning services or handy men or pool guys) Some of these sources might help you. I focus on IN MO OH KY MI & TN. They might work for you in your area, too. I use investors from CA & WA for funding since they like to invest where it's affordable.

Leads List: AC Unit Repairmen, ,Accountants/CPA's, ,Adopt a Street Sign, ,Articles, ,Attorneys/Solicitors, ,Auction.com, ,Auctions, ,Auto Dealerships, ,Bandit Signs, ,Bankruptcy Court, ,Banners, ,BBB, ,Billboards, ,Bird Dogs, ,Birth Announcements, ,Bulletin Boards, ,Bus Stops, ,Business Cards, ,Car Washes, ,Carpet Cleaners, ,Charitable Donations, ,Charitable Raffles, ,Church, ,Civic Organizations, ,Code Violations, ,Cooperative (Coop) Advertising., ,Developers and Builders, ,Door Hangers, ,Door to Door Canvassing., ,Driving For Dollars, ,Expired MLS (Multiple Listing Service) Listings, ,Facebook, ,Federal State City employees, ,Festivals and Fairs, ,Financial Planners, ,Financial/Money Advisors, ,Flyers, ,Flying Banners, ,Foreclosures List, ,Free Gift, ,Free Information Report, ,Free Publicity, ,Freebie Newspaper Ads, ,Garage Sales, ,Gardeners, ,Gardening Clubs, ,Google Ads, ,Google Maps, ,Grocery Store/Department Store Carts and Benches, ,Handouts, ,Hard Money Lenders, ,Helium Balloons, ,High Tech Employers, ,Hold Seminars, ,Home and Garden Shows, ,Home Shows, ,HomeDeport & Lowes & ACE, ,Hospitals & Universities, ,Host or Co-Host a Charitable Function, ,Insurance Agents, ,Interviews, ,Investors, ,Join Community/Business Organizations, ,Joint Mailers Doctor's Bills, ,Large Employers, ,Laundromats, ,Legal Newspapers, ,http://www.listsource.com/homepage/index.htm, ,http://www.usprobateleads.com/, ,Loan Officers, ,Local Employers, ,Lyft Drivers, ,Magnet Signs for Cars, ,Mail Centers, ,Mailers, ,Mailmen, ,Marriage Announcements, ,McDonald's Sign ? Rent, ,Meet Up Groups, ,Minor Newspaper Ads, ,MLS, ,Molly Maids, ,Mortgage Brokers/Lenders, ,Movie Theater Commercials, ,Networking Clubs (Lions, Eagles, etc), ,Newspaper Weekend edition ads, ,Open Houses, ,Paper Signs, ,Pipl, ,Pizza Delivery Drivers, ,Pointer Signs, ,Pool Cleaners, ,Pre-Foreclosures, ,Probate Lists, ,Promotional Materials Calendars, Note Pads, Magnets, etc., ,Property Brochures, ,Property Managers, ,Radio, ,Real Estate Agents, ,Real Estate Magazines, ,Referrals, ,Regular TV Commercials, ,Rent to Own Stores, ,REOs, ,Restaurants, ,Restrooms, ,Grocery stores, ,Secondary Lenders., ,Shooting Ranges, ,Short Sales, ,Side of Uhaul, ,Special TV Programming, ,Spokeo, ,Sponsor a Team, ,Sponsor an Event, ,Sr. Centers, ,Superior Court, ,Talk to Neighbors, ,Tax Liens, ,Tear Off Notices, ,Telephone Poles, ,Television TV Guide, ,Title Companies/Closing Agents, ,Trade Shows, ,TShirts and Hats, ,TV Guide Newspapers, ,Twitter, ,Uber Drivers, ,Uhaul Locations, ,Vehicles, ,Visiting Nurses, ,Walking Billboards, ,Web Links and Alliances, ,Web Page, ,Wedding Announcements, ,Weekly Hotels, ,Yellow Pages, ,Your Competitors, ,Your Contractors/Vendors, ,Your Existing Occupants, ,Your Voice Mail/Tell a Friend, etc

@Bryce Betley - As far as depending on people remembering your company name, a lot of money typically goes into a branding campaign to get your name out there enough for people to recognize and remember. That is typically the advanced strategy for larger income generating companies. It is more cost effective (better ROI) on the front end to continue to advertise for people that need a solution NOW. How you do that marketing of course varies. Bandits signs are an option but as you can read from all the other comments, there are downsides to that.

Originally posted by @Adrien S. :
Originally posted by @Joe Splitrock:
Originally posted by @Bryce Betley:
Originally posted by @Adrien S.:

They tend to work better in C/D areas.

 That is the other thing - they appear to be directed towards people who are desperate. The market I am trying to go for is people who don't have their backs against the wall

 Wholesaling in general preys off desperate or ignorant people. The signs are illegal in most cities. It is not just "we buy houses" signs, people with any business can't just litter most cities with signs. I know people choose to break the law and use burner numbers to avoid getting caught, but why be "that guy". If you are not smart enough to make your business successful the legal way, you won't be in business long.

 I don't think it's fair to say wholesalers prey off certain people. Plenty of end buying investors purchase properties off market and are trying to get the best deal possible. I know several legit wholesalers and several scammy investors. It's more the person and not the strategy. 

 Wholesaling is a little different because it assumes two people are getting a good deal. The wholesaler is getting paid and the end investor is buying well under market. Getting deals for $50K-100K under market value is not possible if you have an educated seller who isn't in a rush to sell. They are looking for people who are in a highly motivated (desperate) or who are not educated on market value (old people or less savvy sellers). I never said that wasn't a legit business model or a scam. They are serving a segment of sellers. Every profession has bad apples, but wholesaling attracts a higher percentage because of the lower barrier to entry. No cash needed, no licensing (even though it may be required in some states) and little education. You see newbies all the times on BP saying "I have no cash or experience and I am looking to wholesale". I know several legitimate and professional wholesalers, so they are out there. They don't put up illegal bandit signs or pull amateur nonsense. They have websites that generate leads, use Facebook marketing, mailers or other legal marketing methods.

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