If you’re like most people, you have heard of house-flipping companies or may have watched those popular television shows where people giving up a dilapidated house and watch it transformed into a beauty. These companies usually advertise by claiming ‘we buy houses’ in Denver, and there are a variety of types out there.
These investors are on the market to buy properties/homes that they can rent out to others. Often they manage the property personally, but they might outsource property management to a separate company. Their ultimate goal is to grow their portfolio of rental properties.
This investment company type doesn’t hold your property for long, and in most cases, will already have sold the property to another investment company. Wholesalers usually get the best deals on the properties they purchase, which likely means you get less cash.
This is the type of investment company that most people are familiar with because of the popular television shows. You have a worn-down home that looks bad with a variety of things on the inside wrong with it, and the company buys it for cheap, demos it, moves things around, and makes it look amazing so that it can be sold for a profit. Many investment companies are flippers, though they usually don’t have to resort to such lengths of renovating the home.
This combination is where most investment companies work. You have a distressed property that has issues or that you can’t afford because of job relocation, financial strain, inheritance, or divorce. The investor buys it from you, flips it (makes it look nice again), and holds it to turn it into a rental.
Regardless of the type of investment company you choose to work with, you’ll find that you can get out from under a house you can’t afford/don’t need and get cash in hand.