One of our blog readers asked me recently, “When you buy all these houses from people, what do you DO with them?”
That’s a reasonable question. Actually, what we do with a property really depends on a lot of factors, including condition, price, location, and our own circumstances. The diagram in the picture lists our most common options.
What we LIKE to do is make needed repairs to a house and offer it back up for sale to a new family, at a price that is reasonable for the neighborhood. It’s good to get a house in good condition to be a nice home for a family who might not be able to afford new housing.
Sometimes doing the above would not let us make any money (after all, we ARE a business). In that case, we often offer a renovated property for rent. It can be really hard to find a rental in good condition, so we feel like that is a great service to provide.
Occasionally we clean up a property, remove old furniture or trash, and sell it in a state where it’s ready for someone else to remodel. That’s a “prehab” sale. That can happen when all our regular contractor crews are busy.
If a house is in great shape, we could sell it the traditional way through a Realtor® or we might live in it ourselves for a while (we’ve done that twice!).
If we have a lot of projects going on, sometimes we sell the house for a small profit to another rehabber like ourselves, so they can fix it up and resell it (this is called “wholesaling”).
Walking away means we don’t buy the house, which happens if it doesn’t work out to everyone’s satisfaction.
And we covered seller financing in another post. It’s a way to help people who don’t qualify for traditional mortgages get into a house of their own.
The main point is that, depending on what is going on with us and our business, we may make different choices. That flexibility ensures that we can make some money and still do the most good with the properties we buy.
We are always interested in talking to anyone who thinks they might fit into one of our strategies, so don’t hesitate to call 12-807-8777 to learn more!