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Has anyone ever dealt with these companies/groups who advertise "we buy houses for cash"? Not only dealt with them, but actually closed a deal with one of them?

I am wondering if they are truly worth the time for a distressed property.

Any insights?

There are a lot of fly by night operations out there, but there are also legitimate operators too. The good ones have investors that are cash buyers or are cash buyers themselves. If you have a deal they can certainly close it and close it quickly. The problem is that a lot of times the distressed seller does not have a deal or is not willing to sell at a price that would be attractive to investors.

@Jimmy Campbell yes, actually I am one of them. It really should say "We buy houses for cash, but we expect some discount in exchange for making it really fast and easy and taking the house as is with the leaky roof and the cracked basement wall no questions asked." I used to buy on distressed REO's MLS, but recently I shifted more focus to direct marketing: we buy houses cash. Did that answer your question?

@Jimmy Campbell I am a wholesaler as well. In all reality we are just the people doing the marketing and speaking with motivated sellers. Once we have a house under contract we get it over to one of our flippers. I do know several fix and flip companies that also market in this way, as well as people who wholetale instead of wholesale. Hope that helps.

@Victor Pierson It's a whole separate world. Basically you find motivated sellers like a wholesaler but instead of flipping the property yourself, or assigning it to a flipper, you just sell it at market value. I have never done it, but I believe you sell it to a buy and hold investor at market rate. Other can chime in on this.....

Not only are wholesalers lacking in real estate knowledge, they lack business knowledge as well. Most probably never heard of the FTC, much less know what deceptive advertising might be. We buy houses, I buy houses, we pay cash for houses, cash for your house, any rendition of that is not going to fit truth in advertising, the clear implication is is that the advertiser buys the house. Wholesalers do not buy houses, so, that s not a true statement. Saying the arrange a sale is not buying.

Most are infamous about twisting the definition of buying to justify deceitful claims.

Of course, all of that would go away if they learned how to partner properly and use other methods to close in their name, but, many are just game players.

As to the signs, if your community has sign ordinances, those signs are in violation. Some places have hefty fines, it's not like they are going along with local laws.

What does that tell you about those types? Tells me the guy who wants to deal with me is willing to break laws for his benefit. Is that really someone I'd want to do business with, some who picks and chooses what laws they follow and what laws they don't? Those are sneaky types, I'd rater do business with a car thief who got caught and paid his dues and was trying to go straight than some sneaky operator.

You want to deal with them.....that's up to you. Good luck with choices :)

I have to agree with you there. Every deal we get ( we buy cash in Rock Hill SC and Charlotte NC ) The first thing we do is try to flip, wholesale. Don't get me wrong rehabbing is great. If I can make 10k just flipping or assigning the contract. Sweet and one to the next one. On top of that most of our deals are flipped before closing date. So we are not doing anything unethical. We are in the business to make money. So every deal is wholesale first, rehab second, refi and hold for rental third.

Working with us allows you to set the terms of the sale. If needed, we can typically close as quickly as a week from the accepted offer. We charge no fees, no commissions, and we will never ask you to complete repairs on the property. Contact us as when you’re ready to say, ‘sell my house fast San Diego!‘

Thanks to everyone who has replied so far. I like a good discussion as much as the next guy, but one thing I don't want to provoke are ill feelings among BP members. I feel maybe at this point I would like to go back to my original post and re-focus on my question. Honestly, we have properties and we would like to know if this is a good direction to go in finding buyers. So going back to my post:

Originally posted by @Jimmy Campbell:

Has anyone ever dealt with these companies/groups who advertise "we buy houses for cash"? Not only dealt with them, but actually closed a deal with one of them?

I am wondering if they are truly worth the time for a distressed property.

@Jimmy Campbell We are talking about the same thing. The people who have those signs are the wholesalers. Bottom line is this: Using a Wholesaler will save you time, realtor commissions & headache, and you may have to put some money out for repairs. That said it will probably net you less money then just putting them on the market with an agent. The reason we (Wholsalers) exist is because some people would rather take 60K in cash in 5 days, rather then sell on the MLS for 100K later. To @Bill Gulley point, some wholesalers don't have any ethics and will take you for a ride - just like every other business in America. There are always bad apples. If you want more info check out this thread: https://www.biggerpockets.com/forums/93/...out-wholesaling-

Don't worry about it. That conversation goes on daily. They really all love each other, sort of like the guys sitting around the gas station getting coffee at 6:45AM arguing. Generally about if Mrs Johnsons dog is part wolf or coyote. :)

In regards to your question. Personally (Just my opinion) I would either call an Realtor (They work for you) or go to a local REI meetup and pitch them. An agent would market it for you and give you pricing ideas. The REI group would get several people involved which would help you realize a better price than going with a single wholesaler (in my opinion of course).