We Buy Houses – How Does It Work? Is It Legit?

Have you ever seen those late-night TV commercials promising you can make money in Real Estate without using your own money or credit? What they’ll teach you is Real Estate wholesale. Check how to Sell House Fast For Cash.

Wholesaling what?

This is absolutely it. You search for a motivated seller, get the property under contract, then sell for a fee to another person your “rights” from that contract. The fee is usually an assignment fee, which varies from $2,000 to $15,000 everywhere. The price depends on each transaction, the demand, and how much the wholesaler contracted to get the land.

Generally speaking, when you call one of these numbers, you’ll talk to a wholesaler who isn’t actually going to “buy” the property, but will find someone else to buy it. It might not be a bad thing for the property owner, because they are in a position where, for whatever reason, they just need to get rid of the house, and don’t really care who buys it.

Relationships

Because the wholesaler would turn around and sell his interest in the property to a list of cash buyers, there is a risk the house might not be purchased. This often happens, and has unfortunately given a bad name to the wholesalers.

This is often the result of lots of new people entering the real estate investment game “no money down,” and not knowing what they are doing. So they get a deal from a seller, and can’t find a cash buyer because in the first place it wasn’t really that good of deal. Either they didn’t get it the right size, or it’s far off their estimate of repairs.

You can do things to protect yourself.

There are few steps you can take to support yourself if you find yourself in a situation where you need to sell your house quickly and call a wholesaler.

Ask for a good, earnest deposit of capital. Most wholesalers will try for $10 or less to get the property under contract, so if they can’t find a cash buyer, the most they ‘re out is $10. I ‘d call for a bona fide deposit of $1,000. If it’s a decent deal for them so why wouldn’t they put up that much at least.

Tell yourself how many deals they made. A good wholesaler knows their numbers and knows how many deals they have made, and is proud of not pulling out of a deal.