Ever wonder who is behind those We Buy Houses signs? Are they reputable cash home buyers? Are they businesses? Will they swipe my house from beneath my feet and take it as their own? Do they actually pay cash for my house? Today we are going to expose who is behind the We Buy Houses signs, what are their motives and ask the hard hitting questions everyone wants to know. We spoke with a local real estate investor here in Phoenix, Arizona who’s chosen to only give us his first name, Cody. We asked Cody 21 questions that the public was dying to know. Here’s what happened.
Phoenix Arizona Investor: Cody White
Cody (38) is a real estate investor who has been using we buy houses signs since the inception of his business. He’s networked with many like-minded investors and knows the ins, outs and all of the juicy details people have always wondered.
I am a sole proprietor at the moment. I don’r run my We Buy Houses business using a traditional business name, but everything we do is legit and by the books. I plan to get my business license soon. It’s just easier this way at the moment. We buy houses, and we don’t need a license to buy them since we have the resources to purchase with cash. Every day people don’t need a license to purchase a house and neither do we. We simply buy them, rehab them and resell them.
From my experience, having met tons and tons of real estate investors and rehabbers throughout the city of Phoenix and online, I have yet to meet someone crooked who posts up We Buy Houses signs. All of those I’ve met are hard working individuals trying to make an honest living. I’m sure there must be a small percentage of bad people out there though.
The majority of the people behind those signs are hard working real estate wholesalers and rehabbers. Honest friendly people.
Not always, we usually get a feel for them to see if they are motivated sellers, other wholesalers trying to network, rehabbers looking for a property to flip, or worst case, the city code enforcement. We usually just give out a first name and then follow up with our info later, once we’re a little more convinced that the caller isn’t a decoy code enforcement agent posing as a motivated seller.
Most real estate investors or wholesalers are scared of being fined, so they are just cautious when speaking with people. I think they are scared cause they know what they do is illegal and makes people angry. There are two types of investors…those who put out signs and wait for the city or people to knock em’ down and then those who only put signs out on Friday evening and then pick them up Sunday night. We prefer the ladder, but from my experience, that’s usually why we are so alert.
Investors use these signs as a way to market to people. We Buy Houses signs are probably one of the cheapest and most effective forms of marketing when done properly. We know they are illegal, but most investors simply take a chance.
Corrugated signs essentially do the same exact thing that billboards do without breaking the bank. The cost is about $1 a piece shipped directly to our business. Marketing is about getting eyes on your product. Corrugated signs do this really well.
No, there are plenty of other ways to market. We’re in the business of marketing and putting our services in front of thousands of eyes. The more people that see our advertising or graphics, the more likely they are to reach out. We’ve tried direct mail, Facebook Ads, cold calling, billboards, tv ads…There are so many ways to market,
The people we target are those who don’t want to deal with realtors or commission fee’s. We target people who have multiple homes and just don’t feel like dealing with them. We target landlords, people who need to sell fast because of divorce or foreclosure. That is our target market. Also, just anyone who needs to sell their home fast.
I personally don’t feel like we do. This is a free market, and we never force anyone to sell their house. People call our we buy houses signs, we give them an offer, and they can refuse it or sell on the market. There are plenty of times when we simply have to refer people over to a realtor because selling to a cash home buyer just isn’t a good fit for them. We never take advantage. We’ve got to make a fair living, and people don’t realize the costs and risk many times that are involved with buying a house for a flip.
As I mentioned before, I don’t feel that we’re polluting since we put our signs up only for the weekend, and then we pick them up on Sunday nights. I also feel like it’s a bit unjust how people tend to have a notorious view on our signs specifically. We’ve seen politician signs stay up for ages and people rarely touch them. I don’t know. I do know that politicians do not have their team sweep throughout the city to pick up all of the signs they too have littered throughout town after campaigning.
Once we receive an address, we’ll usually hang up with the seller and let them know that we’re going to take a look at the property online and compare the values of nearby homes that have sold. This helps us to form an offer, and take a look at the property condition to calculate general repair costs. We value peoples privacy and never ever share it with anyone. It’s a huge priority of ours.
Their information never, and I repeat, never goes beyond our doors. Privacy these days is such a huge deal.
We typically offer between 65%-78% of the homes fully repaired value, minus repairs, taxes, mortgage, or liens.
No, if we know that someone doesn’t want to sell their house cash, we respect it. We actually advertise this. Just because we give an offer, that doesn’t mean sellers are obligated to sell. Not at all.
Once we’ve agree’d upon a price with our seller, we will either email over a digital signature “purchase and sales agreement”, for them to sign and return, or schedule a visit to have them sign in person. During this time, we’d take advantage of time and take a more in depth look at the property. We give the choice to our seller friends.
Haha, no. I think a lot of people might think that. We pay cash for houses just means that we can close quickly since there are no banks or loan approvals required. In the real estate market, it is the law that homes must transfer over to new owners legally through a title company.
We’ve used several title companies. Our Favorite is North American Title Company, but we’re always flexible and will purchase at a preferred title company of the seller if needed.
I’m sure that there must be crooked title companies out there somewhere, but we won’t do business with them. We’ve got to use a trusted title company that will help bring security to our sellers. There is already a rough stigma associated with real estate investors as it is and we do our best to stay away from anything that will hurt our reputation…
As little as 7, but typically between 14-30 days. It usually depends on several factors.
Not where people have lost homes, but we have heard of crooked investors and title companies. Honestly though, there are bad people in all industries. Our recommendation is simply to ask questions and trust your intuition.
No. After getting to know many investors over the years we’ve concluded that 90% of the time, you’ll find that following through from start to finish, you will successfully sell your house cash to the “we buy houses signs” investors. 10% of the time, you may encounter problems such as the property not selling within the agreed time frame, or meet malicious investors. We’ve come to understand that most investors who use “we buy houses signs” for marketing only behave this way towards callers from the we buy houses signs. When possible, it’s best to find cash home buyers like ourselves at Average Joe Buys Houses or other investors online.
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