Should You Sell to an Investor?

These are the three categories of investors you will encounter.

I've been hearing a lot about people getting calls, texts, and emails from investors saying, “I'm an investor, and I want to buy your house.” What I've found after researching these different types of calls and emails is that they fall into three categories:

1. Wholesaler. They're someone who wants to tie up your house and then find another buyer to give them a higher price. These people don't have the money to close. It's always a waste of time with wholesalers because either you get way less for your house so they can make a profit, or they get down to the end and they can't close because they don't have the money. I strongly recommend against someone who doesn't have proof of funds or has to check with someone else to get the deal done.

   
   

"Wholesalers don’t have the money to close."

2. Traditional investor. These are either fixer-upper guys or buy-and-hold. The fixer-uppers do some work on the house, and then sell it for a higher price. These are legitimate people, they do a great job of helping you get out of the house without doing any repairs, and they help the neighborhood. It's an overall win-win. The buy-and-hold types buy the house and just hold it for 10 to 20 years as part of their retirement plan or personal financial plan.

3. Institutional or hedge fund investors. These are investors who have hundreds of millions if not billions of dollars with which they're trying to buy houses. Right now, they're a little behind their goals, so they're paying above market price, in cash, and there are no repairs. This is a very new phenomenon, and I don't think it's going to last long.

If you are interested in selling to an investor or you know somebody interested, just give me a call. I can do the deal with no obligation, showings, or sign in front of your house. If you have any questions about wholesalers or traditional investors, don’t hesitate to reach out to me.