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I am sure everybody has seen those signs. I always wonder what is behind them? How does it work and who is putting up the money? I am sure they are trying to steal the house.
They are called "bandit" signs in the wholesaler industry. The goal is to find owners with tiny mortgage balances and no interest or ability to rehab their homes to any level that conventional buyers who need loans would/could purchase the house. The advertisers are called wholesalers. They arrange for an investor (like me) to buy the house and pay all the selling expenses. The owner generally walks away with no money but avoids liens and foreclosure. The wholesalers generally earn money and get their cut from the buyer as part of closing costs.
Not steal.
Buy low. Very low. So low you smell the whale poop on the bottom of the ocean floor.
No different than a pawn shop.
If you really need the cash now, you deal with them.
If the house is paid off why would the owner want to just walk away? Even if there are liens on the house, he could sell and payoff the loan. If they are underwater I don't know if this helps anybody.
If the house is paid off why would the owner want to just walk away? Even if there are liens on the house, he could sell and payoff the loan. If they are underwater I don't know if this helps anybody.
Not all houses are eligible for financing. The ones that aren't are not well suited to 'average' buyers.
Kind of like the "we buy ugly homes" you don't have to invest one thin dime... blah, blah, blah.
Real estate worth is location, location, location.
Next on the list is condition, condition, condition. A good amount of people don't want hassles, don't want to spend hours and hours on weekends repairing a beat up house let alone sinking a bunch of money in constant repairs, hiring contractors and so on.
If a house sits on the market for whatever reason it tells others looking that there is likely something wrong with it. A lot of people don't want the hassle by this point and this is where these guys come in, then there is always the possibility of getting a decent property for pennies, nickels or dimes on the dollar of actual worth, due to really nothing more than clever marketing campaigns.
Take the show "The Price is Right" for an example pay attention to the end show case and how many days the bids are way off... people either vastly over bid or under bid.
Or the quote "Another man's trash is another man's treasure."
Some folks get tired of FSBO, get fed up and let the bottom feeders "take the place off their hands".
Others make the mistake of hiring an incompetent real estate agent and after months with no offers just dump the place.
Folks that inhiert a crummy place from their crazy cat lady hoarder inlaws figure it is easier to let the "we buy ugly houses" people deal with the stench...
Some of these are actually "franchisees" and in such cases the folks making money are really the guys selling the "system" to naive folks willing to waste time sticking signs on the freeway ramps...
It is no different than folks that "trade in" cars without a clue as to how much they are really worth and then "finance" the remainder of the payments on their "new car loan" and other silly thinks like "renting" a bug cheap TV until you own it after 3x what it would've cost to buy the thing...
Anyone that bets against the stupidity if consumers will be on the losing end of such a proposition!
At the extreme opposite end of things there some folks that visit forums like these and try to sniff out every last penny they can in "frugal living" or just the less extremely thifty folks that at least understand the value of a low interest mortage / why it makes sense to buy a home in the nicest neighborhood you can afford / negotiate the most favorable terms for a home purchase... It is big world with a whole lot more people down at the "not good with money" end than up at the "save my way to financial freedom" side!
The real estate industry is full of leeches. That's all they are. Building and renovating isn't that terribly complicated or hard, so the people are out for a quick buck on the back of someone else without actually creating anything.
The real estate industry is full of leeches. That's all they are. Building and renovating isn't that terribly complicated or hard, so the people are out for a quick buck on the back of someone else without actually creating anything.
a lot of these homes are anything but a "quick buck". Hoarder homes as a primary example. Homes that were used as a cat sanctuary, dog kennel etc.
You have no idea some of the places that exist out there. Gives me the eebie jeebies just thinking about it.
Two years ago when my father passed away, all of us heirs got a letter from someone wanting us to sell his house through them. We are a family who are suspicious of just about everyone & everything. (My brother won't even email when he is going to be in town because the "Russian Mafia" might be interested in his email. That is NOT a joke.) Naturally, we ignored it. When we did sell the house, we had EIGHT offers!!!! Sold it WAY above our asking cost. Location, location, location. (A very nice neighborhood in D.C.)
Cat
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Steal is a very strong term
