Instead of glossing over the issues with half-truths or deception, we have chosen the more blunt and truthful approach to explaining what we can do for you. There are basically THREE main ways we can buy your house (technically there are about 100+ different ways we can buy it, like with Seller carrybacks, Shortsales, Installment land contracts, All inclusive deeds of trust, Wraps, and and combinations thereof and etc),,, but usually there are only 3 main ones:
#1, we can buy the home at a decent discount and pay all cash.
#2, If there is an existing mortgage on the property, We can buy the home and conserve our cash by just "taking over its payments".
#3, or a combination of any of the above.
First, let's discuss the paying all cash. Whether our competition wants to admit it or not,,, no investment firm, who pays all cash for a house, can actually pay 100% of the value of the home and still make a profit on the deal. There are simply too many costs involved in these all cash transactions. Basically, there are many fees that we have to pay when we buy it, when we fix it up, when we maintain it, when we hold onto it, when we re-market it, and when we resell it. Most firms blow through at least 10% to 30% in costs or fees from the moment we purchase it with all cash to the moment we resell the property. As such, since we are in business to ultimately make a fair profit for our time, efforts, and risks,,, when we pay all cash, we usually need to purchase the properties anywhere from 60% to 80% of the home's market value to be able to turn an acceptable profit.
But, you might say,,, "well, that's fine and dandy but I can't afford to lose 20% to 40% of my equity to sell to you for cash". Well, first of all we would reply, "Remember, if you sell with a Realtor, you would usually pay about 6% for commissions, an additional 2% for closing costs, plus about 4 to 5% for Buyer's negotiated price reductions (a lot of buyers don't pay full price), then about 2% for miscellaneous petty repairs that the buyer ask you to cover, and etc. and etc. and etc.. When you do the math,,, with a Realtor you can easily lose 15% of your home's value. And to further compound the matter, sometimes by using a Realtor, it could take months for the property to sell,,, and even then you have to cross your fingers that the Buyer will qualify for a loan and etc. Not to mention all the hassles, aggravations, and stress of listing your home for sale. You know,,, having hundreds of people traipsing through your home at inopportune times (like at dinner time or when you are giving the kids a bath or etc.) or feeling like you have to keep your home in immaculate condition fearing that at any moment another realtor might bring by a client, and etc. Whew,,, who needs all that?
But you might then counter us by saying,,, "but at least with a Realtor, I could walk away with up to 85% of my home's value"... And for that very reason we have perfected our "take over your payments" program. With this revolutionary program, we can actually dramatically increase the ratio of what we can pay you for your home and still have it make sense for us financially. Usually it allows us to pay you up to a whopping 95% of the what the house is worth. Heck, that is way more than you would probably even net if you sold it outright for cash using the slow and traditional Realtor method.
What is so cool about this program is that you won't have any commissions to pay, we will pay for ALL of the closing costs, we won't require you to make or pay for any repairs, and we won't beat you up on the price.
You see, by doing the "take over your payments" program, we free up our cash to close more other deals. As such, we can dramatically increase the ratio that we can pay for your home. Also, when we "take over the payments" we can reclassify the asset and move it from being a property that has to be resold right away to one that we can go long term with, which is again, yet another reason why we can raise the ratio that we can pay you. Lastly, when you opt for the "take over your payments" program, we rarely have any of our high marketing costs involved when we resell it because the resales are handled internally by our staffed lease option department and we don't have to pay the usual 6% commission that are associated with a regular retail sale.
For all these and other reasons, you can see why we can actually pay you much more for your property than most all of our competition could even think about. We have perfected this program and have been able to shave off a ton of costs and margins which in return makes us extremely competitive in our pricing that we can pay you for your house.