If you own a house in Indianapolis, you have probably gotten the postcards, the texts and the calls. We buy houses. Cash. Any condition. Some of those come from companies that will actually buy your home. Others come from people who plan to sign a contract with you and then sell that contract to someone else. Both call themselves cash buyers, so it helps to know the difference before you sign anything.
My name is Brett Snodgrass. My family and I have been buying houses in Indiana since 2014, and I'm writing this because I have watched too many good people get hurt by a process nobody explained to them.
What is wholesaling?
In real estate, a wholesaler puts a house under contract with the owner, then finds another buyer and assigns that contract to them for a fee. The wholesaler often never plans to buy the house. Their profit is the gap between the price you agreed to and the price the end buyer pays.
Wholesaling is legal when it is done honestly. But it adds a middleman, and that can create problems for the seller.
Why it matters to you as the seller
- Your closing date depends on a stranger. If the wholesaler can't find a buyer, your closing gets pushed back, or the contract gets canceled at the last minute.
- Your price can change. Some sellers get a call days before closing saying the inspection found problems and the price needs to come down.
- You may not know who is buying your home. The name on the final paperwork may be someone you have never met.
- Part of your equity pays a fee. The assignment fee comes out of the deal that started with your house.
What a direct buyer does differently
A direct buyer purchases the house with their own funds. At Simple Quarters, that is the only way we work. We sign the contract with you, we close with you at a title company, and we own the house. We don't sell your contract to anyone else. After we close, we fix the home up and resell it or rent it out. That is our business, and it's why we can make a firm offer.
When you sell to a direct buyer, you get:
- One contract and one closing, with the people you actually met.
- A closing date you choose, because the money isn't waiting on another buyer.
- No repairs and no commissions to pay out of pocket. We buy as is.
- A straight answer if the house isn't a fit, instead of a contract that falls apart later.
You can see how our process works, step by step, on our Sell My House page.
Five questions to ask any cash buyer
1. Will your company be the buyer on the closing documents?
What to listen for: a clear yes, and the name of the company that will sign at closing. If they talk about their buyer or their partners, you are probably talking to a wholesaler.
2. Can you show proof of funds?
What to listen for: a recent bank statement or a lender letter in the same company name that is on your contract.
3. Which title company will we close with?
What to listen for: the name of a real title company you can call yourself to confirm the closing is set up.
4. Does the contract allow you to assign it to someone else?
What to listen for: no. Read the buyer line on the contract. If you see the words and/or assigns after their name, ask them to take it out.
5. Can I talk with sellers you've bought from?
What to listen for: real reviews from local sellers on Google, or past sellers who are willing to talk with you. An honest buyer will be glad you asked.
Want to hear more? Listen to our podcast episodes on fake vs real home buyers and what happens when a buyer bails, or read our seller FAQs.
Our promise
We believe business is a way to serve people. Scripture tells us to let our yes be yes (Matthew 5:37), and that is how we try to work. If we make you an offer and sign a contract, we intend to close on it. Sometimes the best advice we can give is to list your house with an agent or keep it, and when that is true, we will tell you.
If you're weighing your options in Indianapolis or anywhere else we buy in Indiana, call us at (317) 886-1824 or request a no obligation cash offer. We'll walk through your situation with you and give you a fair cash offer.
