Make Friends with the WE BUY HOUSES Investors for Short Sales
We are working with a new Keller Williams agent. I’m fairly amazed at the amount of short sales she hands into us for negotiation. I believe she has had 8 short sales that we are either in process of negotiating or have closed since the beginning of 2012 for this one agent. She does a high volume of real estate, including traditional sales.
She called me last week about another short sale she wanted us to negotiate and I finally asked her what her secret was. She chuckled and told me she had gone to lunch with two different “We Buy Houses” investors. The WE BUY HOUSES guys are typically wholesale investors. They look for a very particular type of home seller. Usually, they want a seller who has been in their home for years, has a ton of equity and just wants to get out quick. They may target estate sales or someone needing to relocate quickly and they offer a lower than market price to then put an option on the property. When the homeowner agrees, they sell their option to someone else for a wholesale fee. This fee can range from anywhere from $3,000-$30,000 depending on the type of property they are optioning.
So, the question is, how do they option short sales? Short sales have no equity. The answer is, they don’t. When a WE BUY HOUSES investor comes upon a short sale, they can’t do anything with it other than refer it over to an agent or short sale investor, or negotiator. Realistically they don’t want short sales. They don’t have to refer them anywhere, but this savvy agent took the WE BUY HOUSES guy to lunch and has had a TON of referrals from this particular type of investor.
Apparently, for every 10 leads this investor gets, only ONE ends up being an actual property he can option so the rest get filtered to others and this agent was able to see the benefit of being able to help this particular investor.
So, agents, when you see the WE BUY HOUSES sign on the telephone pole, don’t shy away. Embrace the wholesale investor, call them up and offer a nice lunch and in exchange, you could have 8 leads roll your way.
The Short Sale Closers!