When I tell people that I am a Real Estate Investor most of the time it is pretty well received.  But sometimes people give me the evil eye.  It’s almost like I just told them that I am a drug dealer or something!  I often hear people saying that Real Estate Investors try to steal houses or that they are low-ballers.  I really don’t understand why some people think that.  They are just like any other small business owners.  They are just trying to make a living.  Sure there are bad ones out there, but there are also plenty of good ones.  Before you jump to conclusions, here are a few things that you might want to consider:

1. Real Estate Investors work with smaller profit margins than most other retail businesses.  Most houses are purchased by investors for around 70-75% of value.  Then they spend money rehabbing the property.  They also have to pay taxes, insurance, and make payments until the property sells.  When it sells they will usually end up paying most of the new buyer’s closing costs plus a 6% Realtor commission.  They will also have their own closing costs to pay.  When all the dust settles, most Investors will end up making around 5-10% on the total deal.  This is not a very good return when you consider the tremendous amount of risk that is involved.  Realtors make 6% and have no risk.  Most retail stores have between a 30% and 50% mark up, if not more.  Car dealers buy your trade in for $10,000 and sell it for $14,000.  These margins are much better than the margins that Real Estate Investors work with.

1. Price is not the only thing to consider in a transaction.  Think about a convenience store.  You pay more for items in a convenience store then you do in a grocery store, but you can get what you need right now!  It is more convenient.  People always pay more for convenience.  People will knowingly accept less for their house if they can have their money in 3 days instead of 3 months.  The same applies to someone who is trades their vehicle to the dealer instead of selling it on their own.  They receive the wholesale value but they don’t have wait for their car to sell.  Each person sells for his or her own reasons.  Sometimes convenience or timing can be more important than price.

1. Real Estate Investors help the economy and provide an invaluable service to the community.  They buy houses that are not desirable.   They remodel these houses, increase the value, and sell them.  By transforming these run-down houses they increase the value of the entire neighborhood.   This is a good thing, especially if you live next door to the distressed house.  In many blue collar neighborhoods rehabbers account for a huge portion of the houses that are sold.  So the bottom line is that Real Estate Investors increase home values and sell lots of houses.  According to the National Association of Realtors, two jobs are created for every house that is sold.  Every house that is sold pumps nearly $60,000 into the economy.  Real Estate Investors help drive the housing market.

1. Real Estate Investors provide affordable housing.  If it weren’t for these investors there would be no rent houses.  Imagine that… a world without rentals.  There are a lot of people who would be in trouble.  I mean, who hasn’t lived in a rent house at one time or another.

Every month I get calls from people who live in small towns where there are no Real Estate Investors.  These people are desperate for someone to buy their house.  They have some sort of emergency and need to sell as fast as possible.  Their house is in such bad condition that it cannot be sold to a home owner.  Unfortunately I can’t help them.  Most critics of Real Estate Investors forget that not everyone has a house in a good neighborhood that is in perfect condition.  Not everyone can wait for six months for their house to sell.  Most critics have never faced foreclosure, loss of income, bankruptcy, or divorce.  They have never walked in the shoes of people who are facing desperate situations.  Thank goodness there are a few good Real Estate Investors in Amarillo.

If your house needs a lot of work or if you need to sell it fast give us a call.  We can buy your house and close in less than a week.  We are members of the better business bureau and have tons of references.  Call us at 806-359-7653 or visit us on line at Amarillo Real Estate Investors.