We just laid out the basics of how we buy houses for cash, but if you’re like other sellers, we’re assuming you have more questions.

If you’re still curious on more information about how we can pay cash for your house, please read on! We’ll explain everything including: a real-life case study breakdown on a house we flipped, how we craft our offers, and the difference between selling with an agent versus selling to us.

When selling your house, we’re fully aware you have several options and other companies to choose from. We lay out the process from beginning to end, with full transparency, so at least with us, you have a crystal clear view of what to expect.

Unlike other companies that can pay cash for your house, we don’t rely on your desperation or your ‘motivation’ to sell – we’ve all heard that “motivated seller” term before, right? Unfortunately, most people view that as an excuse to make an extremely low-ball offer. We don’t take into account how motivated you are to sell – or not – we make our offers simply based on our numbers below – 100% of the time.

“Okay, blah blah blah – you’re great, we get it.”

Alright, so now let’s get on to the fun part…

“Who the heck is an After Repair Value?” Let’s dive a little deeper into these terms to get a better understanding into the FOUR main elements of our cash offer.

MORE SIMPLE TERMS PLEASE

Our offer to buy your property is determined based on the market value of the house (after we fix it up), minus ALL of our costs to fix it up (including our profits). It’s really that simple!

So there you have it! How we calculate our cash offers, 100% transparency. Now what are you waiting for! Get on out there and start flipping houses! 😉

Now…curious how a real example looks?

Let’s say your neighbor’s house is an exact replica of your house, and it was sold 2 months ago for in this condition, after they replaced the roof, updated the kitchen and bathrooms, put new appliances in, and put new flooring in.

No wonder they sold it for $250K! It looks beautiful.

ARV (After Repair Value): $250K

COR (Cost Of Repairs): $60K

Our Selling Costs: $25K (10% x $250K)

Our Minimum Profit: $20K (“Heavens to Betsy! They’re going to make $20,000?!” Keep in mind, these often take 4-6 months from when we close to when we actually sell it) 🙂 

Final Cash Offer: $145K

As you can see, we make our offers based solely on the numbers and NOT based on how desperate or “motivated” you are.

Our Offer vs Selling with an Agent

Our Offer: $145K Cash, in your pocket on the day of your choosing. No fees or hassles that come with the traditional home selling process. Easy Peasy.

So now you have a decision to make – do you want $148.5K after listing it with a realtor, dealing with open houses for months on end, and that is assuming it even sells?!

Or, do you take the $145K cash offer that’s guaranteed to put money in your pocket in 10-20 days?

Decisions, decisions…

But WAIT! What IF…

What IF those repair costs come in lower, and instead of $60K they were $35K!

This is where it gets interesting…if you guessed we’d be able to offer you more, you’d be correct!

If we refer back to how we craft our offers:

ARV (After Repair Value) = $250K

COR (Cost of Repairs) = $35K

Selling Costs = $25K (10% x $250K)

Our Minimum Profit = $20K

In this case, we’d be able to offer you $170K!

That’s $5,000 MORE than what the house is worth in its current condition and over $20,000 MORE than what you’d get, in your pocket, if you listed your house with an Agent.

No Obligation and it’s 100% FREE. We promise.

Many other companies that pay cash for homes don’t take the time to craft a specific offer like we do. They will often just take a flat percentage of that After Repair Value that we talked about before, and make an offer strictly based on that. Often times, they really don’t even have the cash to close on these properties! Crazy right??

So, when selling a property, what does that mean for the homeowner? It means an incredibly low offer – they operate on a mass-offer approach. Why do they operate this way? Simple. It’s just a numbers game to them – they’ll make 100 offers and get 1 accepted. Now, we’re not here to speak poorly on other business practices. We are just simply letting you know the facts, so you are aware and don’t fall for any of that nonsense. 

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