F.A.Q | Frequently Asked Questions
1. Never accept an assignable contract. If the buyer wants the contract assignable, that’s a tipoff they will need to flip it to perform.
2. Get a large earnest money deposit. A legitimate cash buyer who intends to close will have no problem putting up 5-10% as earnest money.
3. Require verifiable Proof of Funds. Require the buyer to provide you a current bank statement, in their name, showing sufficient funds to buy your property. Don’t accept letters of credit, loan commitments, etc. If the buyer says they are a cash buyer, make them Show You the Money!
The next step involves estimating our cost and the corresponding value of any indicated repairs or improvements. This is an area where we have a significant advantage over our competitors. With virtually all of our construction performed in-house, by our own crews and contractors, we are able to renovate properties, and add considerable value, at a fraction of the cost paid by a typical homeowner or most of our competitors. Our purchasing volume has allowed us to secure builder-level pricing on nearly all of our materials.
We then estimate the highest possible resale value, and our expected selling expenses. This will take into consideration current market conditions, existing inventory, and a careful review of recently sold properties that are similar to yours. Our advantage in this area is twofold; our renovated properties consistently sell at the top of the market, often establishing benchmark sales in most neighborhoods, and our in-house marketing represents a substantial savings.
With all this information in hand, we can then determine what we can afford to pay for your property. From the estimated resale price, we subtract our renovation expenses, holding and sales costs, and a reasonable profit margin to arrive at the price we can pay.
We, like any company, need to have the potential to make a profit when buying property, but it is critically important to recognize and understand that much of our profit is earned very differently than most of our competitors. A majority of our profit comes from the value added and savings gained, from having full in-house construction and marketing. This allows us to pay more for the properties we buy than would otherwise be possible. For many of our competitors, especially those who intend to flip the property to another buyer prior to closing, their profit depends entirely upon extracting the largest discount possible from the homeowner. Who would you rather sell your property to? We are completely transparent in our buying process and are happy to share with you all of the contributing factors we considered in determining the price we can pay. We welcome your questions and encourage you to compare our offer to any others you receive; we are convinced you’ll like ours.