Olivia Rojas: Hi guys, my name is Olivia Rojas and I am your local Columbus, Ohio real estate investor, as well as an agent. I’ve been involved in real estate since 2018, but I also love guiding buyers, sellers, and investors through the real estate process as an agent. And today I wanted to do a quick video talking about the We Buy Houses signs. If you live in Columbus, Ohio, I can almost guarantee that you have driven by these signs that say things like we buy houses, we buy houses for cash, we buy houses fast, we buy houses in any condition, and then it has a phone number underneath. And as someone who works with a lot of different people in the real estate world, I get a lot of questions asking what these signs really mean. So I just wanted to do a video explaining the background of these signs and give you an idea if you should call these numbers or not. So the people who are putting up these signs are mostly people called wholesalers. And for those who don’t know, wholesaling is the process of making money in the real estate industry through a real estate transaction without being licensed. So legally, only licensed agents can market and sell a property, but anyone can sell a contract. And that gray area is where wholesaling lives. So as a wholesaler, your goal is to find a homeowner who is looking to sell, you present them an offer, they accept that offer, and then you market the signed purchase agreement for a slightly higher price. And the difference between what you have the property under contract for and what you sell the actual contract for to the end buyer is your profit or what is called an assignment fee. And we did many deals this way. I have a lot of experience doing deals this way, but a big way that wholesalers tend to market themselves are through these bandit signs. So a lot of people wonder, “Okay, I understand that, but then are these people are the ones that are actually buying my property?” And the answer is no most likely. 99% of the time, these people that are putting these signs out that are asking me to call them are going to put your property under contract and then find an end buyer like I just explained. Now, this isn’t always the case. Some really big wholesalers have a ton of capital because they’ve been doing this for so long they’ve made so much money doing these deals that they do buy properties themselves, either to flip or to have in their rental portfolio. It just depends. But usually the people that are putting up these signs are not going to be purchasing your property. A lot of people find this practice a little bit shady, but it is perfectly legal as long as the wholesaler is marketing the property correctly and selling the contract rather than the property itself. The sign is just really meant to catch your attention and make you call. But again, they are probably not going to be the person that actually will buy your property. So a lot of people are thinking, “Well, why would I do this? Why would I call a wholesaler when I could just call a licensed real estate agent and list the property?” Which is a great question. So the trade-off between working with a wholesaler and a licensed real estate agent is a wholesaler is going to promise a very fast turnaround time, so a very fast closing typically, as well as very little effort on the seller’s part. So a wholesaler always will market the contract as as is, which means the seller doesn’t have to do stuff to make the property ready to sell as they would working with an agent. They don’t have to make repairs. They don’t have to clean the property. They don’t have to get nice pictures taken or accommodate a bunch of people in and out of their house for showings. It’s very little effort on their part, which is enticing to a lot of different people. And again, because a wholesaler is usually going to be marketing these contracts to a cash buyer at the end, they can close very quickly. So really fast closing and very little effort on the seller’s part. Now on the flip side, the disadvantage to this is a wholesaler is going to have to get the property under contract for under market value to make sense for them so that they can make some money on their assignment fee. And also so that the end buyer who is typically going to be an investor can also make some money with whatever exit strategy they choose. So as a seller, if you’re working with a wholesaler, you’re going to have to go with a slightly lower offer in order to take advantage of the things that we just talked about, the fast turnaround time and the little effort on the seller’s part. So this is the price you pay and to work with a good wholesaler, but a lot of people need that. A lot of people who are maybe going through a divorce, they need to sell quickly. They’re sick of having the house. A lot of people who are facing foreclosure, they’re behind on payments, they have to sell quickly or people who have an unwanted inheritance. These are people that wholesalers love to target because they are typically willing to take a slightly lower offer in order to have the things that we just talked about. So if you are interested in selling and are curious about the difference between selling through a wholesale or listing with a licensed agent, please go ahead and fill out the form in the description. We can jump on a call or meet in person. And once I know a little bit more about the property, what we do is we call it a one-stop shop, my husband and I. My husband and I work together as a real estate investing team. He is not licensed, I am. So the way we do it is he can actually present you with a cash offer, a wholesale offer. We’re always upfront. We’re not going to be purchasing the property, but this is what we know we can get an end buyer to pay and we put it on or contract. Or I can present you with an offer, not an offer, but a list price. And this is pretty much what I know the property will sell on the market. It’s going to be significantly higher than the cash offer as a wholesale deal. But again, it’s always going to depend on what the seller’s needs are and what their unique situation is. And so that’s how they’re going to make their decision with which offer they want to move forward with. So that’s kind of what I try to present as an agent. That’s a little bit different than most traditional agents. Most traditional agents do not do wholesaling because technically you’re not really supposed to as an agent, which is why my husband and I tag team it and he handles the wholesaling part, I handle the traditional listing side. So thanks so much for watching. I hope this video helped explain the We Buy Houses Columbus, Ohio phenomenon. Please comment with any questions or reach out to me directly. I think I can definitely help you in your real estate transaction. Thanks so much. Bye-bye.
If you live in Columbus OH you have probably seen the We Buy Houses signs on busy streets and intersections. In this video, I break down what these signs mean and whether you should or shouldn’t call those numbers! Interested in comparing the difference between a wholesale offer and a list price? Fill out the form here and let’s chat!