Send me One more Flipping text telling me you want to pay cash for my house! 🔫 Who are these People??

Let's dive in! Are they real or not? What are the Pitfalls, Is it China? Is it Bill Gates?..And More in this REK'd Real Estate Newsletter! Welcome Ya'll

You just get settled on the couch, drink and remote in hand, feet propped up, everyone is home chilling after a solid work/school day, and DING!! Your text message goes off. I’d like to buy your house..for cash!

Let’s break this down from my perspective! I’m going to give you the top 3 scenarios in reference to the buyer/investor on the other end of that text, or the agent at the other end of that text. If you are thinking there are scammers in this mix..right you would be. Today I am going to help you navigate through what is an opportunity and who to run from!

If i’m in your shoes I’d like to know what qualifications the writer has to move forward with reading this..I’m going to give you a run down of my experience.

1. I’ve worked Directly with Large Institutional investors such as banks and hedge funds to both buy and sell properties.

2. I’ve been one of the agents sending that annoying text…not anymore 😎

3. I’ve been one of the investors buying these properties

4. I have 12 years experience with selling foreclosures, dealing with investors, flipping, and understanding who is real, and more importantly…who isn’t.

Let’s Get with it! Investors first! Here are 3 types

1. 💰Institutional- Real Estate Investment Trusts, I-Buyers, Hedge Funds

   a. These investors either buy and hold or search for properties to flip.

   b. These investors are well managed, most are US Based, and they have certain qualifications for homes they want to buy. This is in order to earn the highest yield on rents, or make the most money flipping the home.

   c. They often come in below market value, yet close enough to check some convenience boxes that make them attractive.

   d. These companies often come represented by an experienced agent with high marks. They are very stingy about who they choose to represent them.

   e. PRO TIP- Always look up the company and make sure well run and US based if going this route to sell your home.

2. 🏡Local Investors- These are investors with local knowledge and often smaller budgets than institutional investors. They are mostly flippers. This means the main thing they are looking for is fixer uppers. They are well staffed, usually well funded, very picky with their money, and the deals they choose.

   a. They are often unrepresented by an agent and rely on local knowledge and connections

   b. The number one goal is the bottom line and to get the home as inexpensive as they can in order to make the most out the home when ready for resale.

3. 🏠Wholesalers- This is a dishonest practice in my opinion. Here’s why. They get your home under contract at a said amount and write in a buyer “or assigns” on the purchasing section of the contract. This means they are shopping their new “prize” which is your lack of knowledge on the value to other investors. They are taking the difference they get from found buyer as commission.

   a. As agents this is the cardinal sin. ALWAYS get as much as you can for your client/seller! If you are taking from the middle you aren’t doing a service, you are cheating people out of money. Get an AGENT!

   b. PRO TIP- NEVER accept a “cash” contract that has a buyers name and the terminology or assigns..that is a wholesaler! Your money and property aren’t “wholesale” items. Often people work their whole life for these properties. Know your numbers or hire someone who does!

Now lets go to the AGENTS!

1. 🏆 Top Agent/Property Consultant. These agents are very strong in business acumen, marketing strategy, and numbers. These large institutions hold them to a high standard.When they text saying they have a true potential cash buyer..They DO. This usually isn’t the agents only source of business as they consult and list all residential properties.They have simply been handpicked due to understanding of the business. These agents can work on both sides of the transaction, and often times even advise sellers against taking an offer if there are better options such as the open market, buyer match programs, traditional listings etc. Only about 10% of the investors offers get accepted. A good agent has the ability to help the selling client and advise based on client goals. They can achieve those goals with or without the investor offer.

   a. Legally these agents must identify their company name in text

   b. PRO TIP- make sure the agent does not work for the investors/purchasers company. This can be a considerable conflict of interest and could possibly position you negatively.

   c. I am this “Chosen” agent. We have recently stopped texting because they annoy me so why do it to you! We have gone to different less obtrusive methods, to add value, earn trust, and serve our clients. Like this EMAIL 😎

2. 🧐 Average Agent- These agents text saying they have a buyer and this is just to get in the door and try to earn your business.

   a. Pro Tip- If someone leads with bait and switch it’s probably not going to be a great experience.

3. 🤕Wholesale Agent- See wholesaler above..this is one of the reasons agents have a bad reputation.

FUNNY MEME OF THE WEEK- Why? Because you are all hearing from the realtor you haven’t talked to in 5 years. You know the one that if asked in public you probably couldn’t remember their name! We hungry again, and the market is no longer easy!! Not me though…thats definitely not why I am sending you this awesome info 😂

Today’s Mortgage Rates! -

30 yr Fixed %6.36

15 yr Fixed %5.66

Last But Not Least is my BOOTS ON THE GROUND SECTION

This is to give you a boots on the ground update on a weekly basis about what’s happening right here in our market based on my personal experience. Here it is!!!

1st 3 Listings of Jan for our team were located in

a. Pelham, AL

b. Calera, AL

C. Hoover, AL

We were concerned it would be as slow as it was Sep-Dec. in our market.

SURPRISE!!! Multiple showings on all and multiple offers on two of the properties. Buyers are still reluctant to get in a bidding war and are very apprehensive when it comes to overpaying so negotiate with butterfly feet and optimism.

ONE LAST THING!! If you like this can you help me GROW with a SHARE🏆

Here is a link/QR code to my digital Business Card if you need anything at all. Until next week Peace, Love, and Cash FLOW✌️❤️💵