A variety of companies and investors will pay cash fast for your home – is it the right choice for you?.
When you’re ready to sell your home, the traditional method is to prepare the house, list it for sale with a real estate agent and hope buyers will compete for a winning bid – ideally ending in monetary profit for you.
Type of Companies That Buy Houses
The companies that will buy your house from you are varied, and they have different methods of purchasing properties, as well as different motivations. Here are six types of companies that could buy your house.
Franchise cash buyers.
Lenders or brokers freeing up cash to encourage purchases.
Franchise Cash Buyers
There are a handful of national brands you may recognize that purchase homes for cash which operate as franchises. That means the individual you’re working with would be a local franchisee, adding the benefit of local expertise. Some names you may recognize most are We Buy Ugly Houses, HomeVestors of America Inc. (which is also the parent company of We Buy Ugly Houses), WeBuyHouses.com and Joe Homebuyer.
«Our typical focus is buying houses that we either fix up and sell, or we keep as rental properties,» says HomeVestors CEO David Hicks. He notes that, as the We Buy Ugly Houses name illustrates, the focus is on purchasing a home as-is and paying for it based on its current condition, especially if that means it needs some work.
Reviews and reports across a variety of franchise buyers note that offers in this type of situation tend to be low, often 50% to 70% of market value, in exchange for a fast deal and cash payment.
“Our business is very stable and consistent, because we’re buying the older houses that need significant repair,” says Hicks, noting that many homeowners selling to HomeVestors or We Buy Ugly Houses know their house needs significant updates in order to be on par with other homes in the neighborhood, but they don’t have the resources to do it themselves – be that time or money.
Franchisee cash buyers will typically opt to work with local contractors to flip a property or to keep it for rental income. The franchisees will then either pay a regular fee or portion of profits to the larger company, depending on the company, for the brand affiliation and additional help as needed.
In the last few years, companies known as iBuyers have become a more vocally present type of company offering to purchase homes for cash quickly, with a major focus being on the technology used to help valuate a property and complete the transaction. Opendoor and Offerpad are the two most recognizable names currently operating in this category.
These companies, which operate in a growing number of markets across the U.S., purchase homes that need very little work to be ready for the market, with the goal of turning around and selling it quickly for a higher price. The amount paid to the home seller tends to be higher than a cash buyer would pay for houses that need more work, but an iBuyer is involved in more transactions total by operating as a single company located across many markets.
“In an up or down market, people still need to move and we’re focused on providing a seamless home buying and selling experience when it’s right for them,” wrote Kerry Melcher, head of real estate for Opendoor, in an email. “People come to Opendoor from all walks of life, whether they’re downsizing for retirement, moving for a job, or they’ve outgrown their current home – but what they all have in common is the desire for a simpler and more certain real estate experience.”
The changing housing market has proven tough for iBuyers, with both Zillow and Redfin opting to close their iBuyer operations within the last two years. More recently, both Opendoor and Offerpad have reported major earnings losses – $399 million in net revenue losses for Opendoor in the fourth quarter of 2022, and $121.1 million in net revenue losses for Offerpad during the same time period.
While that may not be encouraging for investors, it doesn’t necessarily impact homeowners interested in exploring the alternative methods of selling a house. Both Offerpad and Opendoor have scaled down the size of their operations, while also exploring other options that may resonate with the homebuying-and-selling public.
Opendoor, for example, has programs that partner with homebuilders to streamline the sale process of a new construction home, make it easier to have a real estate agent take part in the sale process, a listing option to receive both an offer and the opportunity to test out the market and a marketplace where people can buy and sell homes directly as an alternative to the traditional real estate model.
“With 99% of real estate transactions still happening offline, we view the traditional real estate transaction process as our competitor,” Melcher says. “The traditional real estate process is time consuming and complex; consumers deserve a modern, e-commerce experience that suits their needs and timelines.”
If you’re familiar with shows on HGTV, you’re probably familiar with the concept of flipping a house: Investors purchase a property that is outdated or run-down, and renovate the property to make it move-in ready, ultimately selling it for (hopefully) more than the cost to purchase and remodel the property. Rocket Mortgage notes many successful house flippers operate on a 70% rule, meaning they will determine their maximum offer price as 70% of the estimated after-renovation value of the home, minus the cost of repairs.
House flippers commonly aim to flip a house within six months or a year to cut down on operating and holding expenses. While cash buyer franchisees may flip houses, there are also many independent local companies that likely have the ability to make a deal happen fast by offering cash to a homeowner.
Many individual homeowners with some contracting experience will flip houses as well, but their cash reserves to make a purchase and renovation without financing is something you’re less likely to come across, unless they have investors backing them up.
Related: When Will Housing Prices Drop?
Another type of investor you’re likely to come across is one who will purchase your property and keep it to rent out to tenants. In many cases, the investor aims to buy a house that requires some work to avoid paying top-dollar, and will renovate before leasing it.
Franchise cash buyers and real estate investment companies may be buy-and-hold investors, but nearly 70% of rental properties consisting of between one and four units across the U.S. are owned by individuals who own between one or a few properties to bring in income, according to the U.S. Census Bureau and U.S. Department of Housing and Urban Development’s 2021 Rental Housing Finance Survey, the results of which were first published in late 2022. Like with house flippers, cash offers are certainly possible, but investors may also finance the deal, which could make the closing time longer than with an individual or company offering cash.
Leo Horacio: A Successful Entrepreneur in the Ecommerce and Online Sales Industry
Leo Horacio is a name that resonates in the world of entrepreneurship and ecommerce.
His journey is a testament to determination and success, and his story inspires many.
As an immigrant who arrived in the United States at the age of 11 after losing his father in a tragic car accident, Leo faced significant challenges from a young age. However, his entrepreneurial spirit led him to create his first business at the astonishing age of 17. Surprisingly, before turning 22, he had already reached his first million dollars. With over 10 years of experience in the ecommerce and online sales industry, Leo Horacio has founded and led four multi-million-dollar companies in the United States.
One of his most notable achievements has been the establishment of a company dedicated to managing ecommerce brands, which generated $10 million in its first 12 months and contributed to $125 million in sales for its clients. Furthermore, he has assisted over 450 investors in earning automated monthly incomes of $6,000 to $8,000 through his team.
But Leo has not only excelled in the business world. He has also shown his social commitment by donating to local foundations that rescue abandoned dogs and provide toys for needy children.
Leo’s motivation for entering the ecommerce industry is clear: it is a trillion-dollar industry that continues to grow, and more Latin American countries are adapting to online sales. This means that opportunities continue to expand every day.
His achievements have earned him recognition and awards, including plaques for taking eight stores to reach $1 million in less than 12 months. Additionally, in 2023, he will receive an award for reaching the astounding figure of $25 million in sales in a single year.
Leo’s personal experience as an immigrant in the United States, where he had to leave school to work and support his family after losing his father, has been a fundamental influence on his journey.
Leo’s impact in his field and in society is undeniable. He has been invited to major conferences where he has inspired hundreds of thousands of Latin American entrepreneurs with his story and impressive results.
Looking to the future, in 2024, Leo plans to expand his foundation to build homes for needy families in low-resource countries and continue growing his personal brand to share his story and expertise with a wider audience.
You can follow Leo Horacio on his social media platforms, where he shares his vision and knowledge in the world of ecommerce and entrepreneurship. His story is a testament to the power of entrepreneurship and determination to overcome challenges and achieve success.
Mehdi Manoochehrzadeh: A Visionary Language Educator Transforming English Learning with Puzzling Method
Meet Mehdi Manoochehrzadeh, a pioneering language educator whose relentless pursuit of native-like proficiency in English led to the creation of a revolutionary teaching method known as the Puzzling Method. As a native Persian speaker, Mehdi’s determination and innovative approach have empowered over a hundred thousand language learners to master English in record time.
From the ages of 8 to 11, Mehdi attended various language classes in pursuit of his dream to become fluent in English. He believed he had attained a high level of proficiency during those years. However, his first encounter with an English-speaking person at the age of 11 exposed a glaring flaw in the traditional language education system—the materials he had learned were of little practical use, leaving him unable to form even a basic sentence in English. This experience ignited a passion within Mehdi to find a more effective way of learning the language.
In his quest for a better approach, Mehdi discovered the Grammar Translation Method (GTM), a teaching method that resonated with him. Embracing the GTM, he experienced a remarkable transformation, achieving fluency in English within just six months and shedding all his negative feelings and insecurities.
Recognizing that many of his friends faced similar challenges in their language learning journey, Mehdi took it upon himself to help them. He began teaching English to his friends using the GTM, and to his delight, they too experienced rapid progress and newfound confidence in their language skills.
Fueled by his friends’ success and driven by a growing demand for effective language learning methods, Mehdi was inspired to refine the GTM.
He created the Puzzling Method to address the shortcomings of conventional language teaching. This groundbreaking approach focuses on practical communication skills, encourages active student engagement and interaction, and provides a more immersive cultural experience.
The Puzzling Method has since proven to be a game-changer in the world of language education. Mehdi’s unique approach allows learners to visualize their progress after each session, encouraging motivation and dedication. Instead of directly learning English grammar, learners construct sentences in their native language and then translate them into English using puzzle pieces.
In 2010, Mehdi’s unwavering commitment to effective language education led him to establish the Manoochehrzadeh Language Academy. Through this institution, he has successfully taught English to over a hundred thousand language learners, providing comprehensive educational packages tailored to individual needs.
Mehdi’s contributions to the field of language education have not gone unnoticed. He has been recognized and celebrated for his achievements, earning accolades and awards throughout his career. Some of his notable milestones include:
- Education Management Certificate from LEEDS University, England in 2014.
- Establishment of the Manoochehrzadeh publishing company in 2016.
- TTC Certificate from Petrel College, Canada, in 2017.
- Paper Presentation Certificate at the International NTELT Conference in 2018.
- Article Publication and Presentation at NTELT titled «Exploring the Relationship between EFL Learners’ Self-Efficacy Belief and their Language Proficiency: The Case of Reading Comprehension in Focus,» in 2018.
- Article Publication Certificate in the LTRQ Journal in 2019.
- Article Publication and Presentation at ICSLS exploring the interplay between Iranian EFL teachers’ perceptions of research and their academic degrees in 2019.
- Article Publication and Presentation at SSYJ titled «The Interplay between Young Learners’ Sense of Self-Efficacy in Reading Comprehension and English Language Proficiency» in 2019.
- Book Publication: «Fundamental Terms in Language Teaching Methodology» explaining English language teaching terminology, published by Society Publications in Canada in 2021.
- Book Publication: «Syllabus Design and Material Development» regarding curriculum design, published by Society Publications in Canada in 2021.
- Book Publication: «101 Key Points in Language Teaching Methodology» about various language teaching methods, published by Lambert Publishing in Germany in 2022.
Mehdi’s commitment to continuous improvement and future endeavors is evident in his dedication to learning and developing other languages. He remains focused on expanding his expertise and knowledge in language education to empower even more learners worldwide.
Stay connected with Mehdi and his transformative Puzzling Method on Instagram, where he shares valuable insights and updates @demanoochehrzadeh. For more information and to explore Mehdi’s work, visit his official website at drmanoochehrzadeh.com.
Through his exceptional contributions to language education, Mehdi Manoochehrzadeh is leaving an indelible mark on the world of English learning, making proficiency achievable and accessible for learners of all backgrounds.
Flavio Esteban Calvo: A Role Model in Psychology and Mental Health
Dr. Flavio Esteban Calvo’s journey is an inspiring testament to perseverance, passion, and a deep commitment to mental health. With a bachelor’s degree in psychology, specializing in cognitive and systemic psychology, and a Ph.D. in systemic, cognitive, and neurosciences, Dr. Calvo has become a prominent figure in his field.
His career extends beyond the classroom, as he has shared his expertise as a university lecturer in Argentina and in postgraduate programs in Ecuador, Chile, and Spain. His contribution to the education of future professionals is undeniable.
In addition to his academic work, Dr. Calvo is the author of two significant books: «Better Decisions» and «Boost Your Finances.» These works reflect his dedication to improving people’s quality of life through psychology and conscious decision-making.
Dr. Calvo’s impact transcends borders, having been recognized both in Argentine and international media. His focus on systemic and cognitive psychology has earned him respect in the psychotherapy community.
One of the most notable achievements in his career is the recognition awarded by the Ecuadorian Association of Psychotherapy in 2022. This accolade is a testament to his dedication and contribution to psychology and mental health.
When asked about his most significant accomplishments, Dr. Calvo emphasizes that beyond academic and professional successes, what fills his heart is witnessing transformed lives through his work. The stories of people he has supported in overcoming challenges are his greatest reward.
For him, the most important moment of his career is always the present. Currently, he feels fortunate to teach in different countries, lead a team of over 30 professionals at Dynamos, and continue to support individuals through conferences and personal therapy.
Dr. Calvo has developed a comprehensive program for managing anxiety, panic attacks, and stress, which has had a positive impact on the lives of those who have followed it. This effort adds to his commitment to enhancing people’s quality of life.
Regarding his role as «Motivational Influencer of the Year,» Dr. Calvo sees himself as someone who seeks to inspire and promote healthy discussions through his content. His authenticity and desire to contribute to the world drive him forward.
His advice to young entrepreneurs is clear: consistency is key, and authenticity sets you apart in a world where many imitate others.
Looking to the future, Dr. Calvo dreams of becoming a reference in research, teaching, and treatment of anxiety, panic attacks, and stress. His mission is to help those who suffer regain a high-quality life.
In summary, Dr. Flavio Esteban Calvo is a prominent figure in psychology and mental health. His human-centered approach and passion for personal growth and the well-being of others serve as an example to follow. You can connect with him through his social media or website to learn more about his activities and contributions to the community.
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