Home & Garden

Whats up with all these buy my house offers?

  • Last Updated:
  • Jul 16th, 2021 5:49 pm
Tags:
Deal Fanatic
User avatar
Oct 13, 2008
6246 posts
2887 upvotes
Durham
fryguy1987 wrote: It's not hard to understand how a 3 bed 3 bath can have 11 rooms. Add Kitchen, family room, Living room, Dining room, laundry room and office and you have 12 and I haven't touched the basement yet or other possible rooms let alone the closets
If you had taken courses anything remotely close to real estate, basement is never included as a part of the property size. It is only mentioned as a finished/unfinished space or rec room. A rec room is not considered part of the actual size of the home if it is in the basement. Closets are not considered a room. Neither is a pantry or linen storage.
16'x11' Living Room 11' Cathedral Ceiling. Hisense 65Q8G. Denon AVR-S740H 7.2 setup. Jamo Classic 10 280W Towers - FR+FL; Polk S35 - Center; Klipsch R51M - RR+RL; Klipsch R14M - Dolby FHR+FHL; Polk HTS10 Subwoofer x2. Unlocked Android Boxes from Taiwan x2
Deal Addict
Oct 13, 2014
2663 posts
1924 upvotes
Just Moved To Somewh…
@engineered @EEE2 Ban on Door to Door sales in Ontario is product specific, mostly in relation to Water, heating and air services/products.
#1 - “Don’t irritate old people. The older they get, the less “Life in prison” is a deterrent."
#2 - Are you a Sexual Intellect? /S - What you post in this thread may determine that.
Member
Jan 3, 2017
435 posts
417 upvotes
jdmfishingonly wrote: If you had taken courses anything remotely close to real estate, basement is never included as a part of the property size. It is only mentioned as a finished/unfinished space or rec room. A rec room is not considered part of the actual size of the home if it is in the basement. Closets are not considered a room. Neither is a pantry or linen storage.
I'm aware of that. Your reading comprehension is obviously failing you. You might want to brush up on it some more. I mentioned 12 rooms and I said I specifically didn't include the basement or closets or pantry or linen closets or anything you mentioned. My house has all those rooms on the main and second floor, plus a few more. Now I live in a 4+4 but I also have more than 11 rooms not including anything you mentioned anywhere you mentioned it.

Do you live in a shed, as it's not hard to see how easy it is to get 11 rooms+ in a 3+3
Last edited by fryguy1987 on Jan 23rd, 2021 8:57 am, edited 2 times in total.
[OP]
Deal Expert
User avatar
Feb 8, 2014
25936 posts
10674 upvotes
Socially Distanced
Gabriel2014 wrote: They're called "Yellow" letters, supposed to simulate personalized hand written notes.

These are normally sent by either private investors looking for properties for their own portfolio or wholesalers looking to get your property under contract and assign for a fee.

Main angle is they're looking to purchase a property under market value by solving the sellers problems. There are a variety of reasons why someone may forgo the typical realtor MLS route. The properties may have a ton of problems (Non-paying tenants, hoarders, structural issues, etc), or due to personal reasons the sellers just need to get out of their property ASAP. In some cases the sellers just don't know the value of their property.

Probably reason why it's getting popular is there's a lot more information out there now on how to do wholesaling and it's an easy way to get into real estate investing with little capital. Additionally with how the job market is going and mortgage deferrals, there's more opportunity to find distressed sellers. There's no barrier to entry, there's a lot of unemployed people with no jobs, additionally there's a lot of money to be made for those that are good at it. A couple of assignments can be more than the average annual Canadian salary. It's not uncommon to see 30k+ assignment fees.

It's a numbers game, they either cast a wide net or focus in specific areas depending on their strategy. The letters are just part of the lead generation funnel, in addition to ads, websites, signs, etc. A small % of those leads would convert to actual properties under contract. A lot of it would depend on the buyers ability to negotiate and close on the lead.
Thanks for explaining this. How do you know about this?
Is it some kind of program or training these people are buying into? The pattern is so similar and two of the letters are almost carbon copies of each other.
In fact in Rand McNally they wear hats on their feet and hamburgers eat people
Member
May 31, 2017
332 posts
88 upvotes
I once wrote a handwritten letter to a homeowner and dropped it off in their mailbox.

It was a house that had previously been on the market but hadn't sold. It was out of our original budget at the time so we never considered it seriously. But as time went on and the market got hotter, we regretted not going to see the house, and so I wrote the note.

Never heard from them. I hope they didn't assume it was a generic "yellow letter".
Deal Fanatic
Jul 30, 2003
6208 posts
988 upvotes
Toronto
JEDI Force wrote: These ads are deceiving.

They want you to think that it is a personalized (hand written) letter instead of mass advertising
They try to make you believe that it is a good opportunity and are willing to buy your house for a good price even if there are issues
They say they will pay cash but it is irrelevant, the seller will not finance the buyer
I am sorry - I still don't follow lol (I am a smart cookie - aren't i?)
- so it be ok if they actually did write hand written letters? (or paid someone to do it for them)
- but they are - aren't they?
- as you said, its irrelevant. Not really deceiving. Just a marketing tactic if you will.
engineered wrote: Probably works great on old people. Just like most door to door sales. What scumbags. High info party taking advantage of low info party.
Isn't that capitalism? Anyone can buy / sell at any price they want? When is it buyer's responsibility to make sure seller get top dollars.
engineered wrote: They're selling their highly overpriced service as a realtor.
Isn't that capitalism? Anyone can buy / sell at any price they want? When is it buyer's responsibility to make sure seller get top dollars.
Supahhh wrote: 3Bedrooms + 3 Bathrooms + 1 Kitchen + 1 Living room+ 1 Dining room+ 1 Garage + 1 Foyer



Its deceiving in that the perception given ( by a hand written letter ) is that someone is interested in buying your specific property and prolly going to give you top dollar for it.
Where as this is not the case.
so if it is actually hand written - that will not be deceiving? or anything a realtor does is just deceiving?

Top Dollar is subjective. Seems pretty obvious - anything these days will get top dollars. You bought last year, I think everyone will get top dollars even if you are looking for a private sale (not through MLS / Realtor).

I know someone who bought a property (back in the day) for $300,000. Invested $50-$60,000 and sold it for $450,000 in couple of months to their friend. That would have easily get $600,000. The friend deceive them? (no realtor was found).

Not looking to argue. Just trying to understand.
GTA Housing: Supply is the only Metrics that Matters
Active Listings has been the limiting factor for past 10 years.... and will be for next 10
Hence I pull exclusive data from MLS and update GTA HOUSING SUPPLY - Daily!
Deal Addict
User avatar
Feb 25, 2004
1516 posts
1041 upvotes
Longueuil
PrinceMS wrote:
I am sorry - I still don't follow lol (I am a smart cookie - aren't i?)
- so it be ok if they actually did write hand written letters? (or paid someone to do it for them)
- but they are - aren't they?
- as you said, its irrelevant. Not really deceiving. Just a marketing tactic if you will.
1. Maybe it is a language barrier and I am mistaken but to me, it is deceiving to try to make someone believe that you are sending a personal letter by faking a hand written letter while it is simply printed mass advertising. It is not a question of being "ok" or not, I am not saying it is illegal, I am simply saying it is deceiving because you are trying to make the person believe it was personally written for them when it clearly wasn't. It is not the fact that it is hand written (or in this case, faked), it is the fact that you try to make them believe something that is not true.

2. Nope, you are definitely not getting a better price ignoring issues with your home. They are in the business to make money (which is 100% fine) but it is simply wrong to assume that issues will not be factored in the price they will offer you, unlike what they say in their ads, which is why it is deceiving IMO.

3. They want people that are not aware of out it works to think that they would be getting a better offer since they are paying cash (unlike other buyers that might have a mortgage?). They want these people to believe that their offer of being paid cash is different than other offers, otherwise they would not mention it but as we know, it is not different. So I believe they added it because they hope to deceive some people. Yes it is a marketing tactic, yes they are not the only ones doing it but it doesn't mean it is not deceiving.
Try not! Do or do not, there is no try...
Deal Addict
User avatar
Aug 12, 2007
4685 posts
823 upvotes
Waterloo
engineered wrote: Probably works great on old people. Just like most door to door sales. What scumbags. High info party taking advantage of low info party.
PrinceMS wrote: Isn't that capitalism? Anyone can buy / sell at any price they want? When is it buyer's responsibility to make sure seller get top dollars.
Its not capitalism to methodically prey on uninformed. Its plain old fraud ( yes if targeting uninformed sellers, its a tier above deception i,e fraud ).
PrinceMS wrote: so if it is actually hand written - that will not be deceiving? or anything a realtor does is just deceiving?

Top Dollar is subjective. Seems pretty obvious - anything these days will get top dollars. You bought last year, I think everyone will get top dollars even if you are looking for a private sale (not through MLS / Realtor).

I know someone who bought a property (back in the day) for $300,000. Invested $50-$60,000 and sold it for $450,000 in couple of months to their friend. That would have easily get $600,000. The friend deceive them? (no realtor was found).
As I said , a Hand written implies its specific to the person in question. for example, I am visiting someone and I see a house which would be fulfilling a specific need that I have. I would contact them with a unsolicited offer to purchase the property.

Top Dollar is not subjective. It means clearly above Market value.

you example is irrelevant to the topic.
----
Pay it forward.
Member
May 12, 2009
392 posts
90 upvotes
Toronto
We received one of those hand written notes last week. "I want to buy your house" note said and there was a telephone no. When I looked at it I thought of calling but then decided to ignore it. I was ready to say few nasty things. A neighbour dislikes them so much I think she might charge them with harassment. We receive requests several times a year.
[OP]
Deal Expert
User avatar
Feb 8, 2014
25936 posts
10674 upvotes
Socially Distanced
Supahhh wrote: Its not capitalism to methodically prey on uninformed. Its plain old fraud ( yes if targeting uninformed sellers, its a tier above deception i,e fraud ).
Actually it is very capitalistic to attempt to monetarily take advantage of people. It is not ethical but it is one of the big flaws in capitalism.

As I said , a Hand written implies its specific to the person in question. for example, I am visiting someone and I see a house which would be fulfilling a specific need that I have. I would contact them with a unsolicited offer to purchase the property.

Top Dollar is not subjective. It means clearly above Market value.

you example is irrelevant to the topic.
Its clearly some kind of coordinated marketing gimmick to attempt to buy properties below market value.
In fact in Rand McNally they wear hats on their feet and hamburgers eat people
Deal Fanatic
Feb 4, 2015
8648 posts
4894 upvotes
Canada, Eh!!
Used to get once in a while in community mailbox.

But last 2 years or so more often in community mailbox and left on porch.

Glad we have recycling bins near mailbox!!
2022: BOC raised 6 times and MCAP raised its prime next day.
2017 to 2018: BOC raised rates 5 times and MCAP raised its prime next day each time.
2020: BOC dropped rates 3 times and MCAP waited to drop its prime to include all 3 drops.
Deal Addict
User avatar
Aug 12, 2007
4685 posts
823 upvotes
Waterloo
Quentin5 wrote: Actually it is very capitalistic to attempt to monetarily take advantage of people. It is not ethical but it is one of the big flaws in capitalism.
Capitalism doesn't involve deception. Capitalism is about market value based on supply and demand.
For example, pump and dump stocks. That's not capitalism. That's outright fraud.

Similarly artificial supply retrains such as in monopolies is not capitalistic.
Or Subsidized manufacturing ( even tho you're selling at market prices ).

This campaign if systematic targeted at ( and I didn't say it was ) weaker community would be viewed as such ( similar to pump and dump ).
Last edited by Supahhh on Jan 23rd, 2021 10:17 pm, edited 1 time in total.
----
Pay it forward.
Newbie
Oct 9, 2014
10 posts
13 upvotes
Toronto, ON
Quentin5 wrote: Thanks for explaining this. How do you know about this?
Is it some kind of program or training these people are buying into? The pattern is so similar and two of the letters are almost carbon copies of each other.
Can find anything on youtube these days or just google yellow letters/wholesaling real estate investing
kenchau wrote: It is relevant. If they say they will pay cash, you can bet I am asking to see plastic bills, no certified cheques or bank drafts. Face With Tears Of Joy
The idea of paying "Cash" is just basically them representing themselves as a qualified buyer that will close on the deal on quick or flexible terms.
Similar to an offer with no financing clause. In both cases, it makes no difference to the seller how the buyer funds the purchase, whether that's cash on hand, a line of credit, private financing, from a bank, as long as they get paid.
In a private deal or MLS, it all goes through lawyers who manage the transfer of funds and title.
[OP]
Deal Expert
User avatar
Feb 8, 2014
25936 posts
10674 upvotes
Socially Distanced
Supahhh wrote: Capitalism doesn't involve deception. Capitalism is about market value based on supply and demand.
For example, pump and dump stocks. That's not capitalism. That's outright fraud.

Similarly artificial supply retrains such as in monopolies is not capitalistic.
Or Subsidized manufacturing ( even tho you're selling at market prices ).

This campaign if systematic targeted at ( and I didn't say it was ) weaker community would be viewed as such ( similar to pump and dump ).
Capitalism involves getting the most product/service for the least money. Whether by deception, lying, incomplete information or worse.
It is far more cutthroat then most of us want to accept, and thats why we need laws to smooth its rough edges. And of course conservatives try to undo laws, regulations and progressive taxation in order to get us back to pure unadulterated greed.
I'll give you some examples, worker safety regulations cut profit but protect human life. It is cheaper in many industries to sacrifice your workers health or life than to pay the costs of keeping them safe while they work for you. Minimum wage makes sure people can live on full time earnings. Laws that keep poisons out of food make sure we don't get sick or die for someone else's balance sheet. Building regulations make sure buildings don't collapse and kill their occupants because unsafe building practices cost less. Pollution laws make sure pollution is treated or kept out of the environment which is cheaper then pollution controls currently mandated. Electrical safety laws make sure we are not sold products that are unnecessarily flammable or have insufficient electrical isolation leading to fires and explosions because unsafe products cost less to produce. Laws that regulate financial markets are meant to keep out malfeasance. Heck, laws should be on the books everywhere that financial advisors have to work in their client's best interests instead of their own (it is on the books in some countries).
And in the case of this thread this is meant to lowball people who don't know better with an elaborate and apparently polished shtick. Information asymmetry i believe its called.
It seems we have had protections for so long that we have forgotten how things would work without them. And of course the regressive reality denying political party wants to undo them and make us believe lies that we would be better off without them.
In fact in Rand McNally they wear hats on their feet and hamburgers eat people
[OP]
Deal Expert
User avatar
Feb 8, 2014
25936 posts
10674 upvotes
Socially Distanced
Gabriel2014 wrote: Can find anything on youtube these days or just google yellow letters/wholesaling real estate investing
Fair enough but until you mentioned it i didn't know it was called yellow letters, which is why i wondered how you knew the term.
And i bet there is some kind of MLM training for this because getting so many from different people yet so similar screams learned behaviour.
Unless they are all from the same person who has dozens of identities and refined the ploy somewhere.
The idea of paying "Cash" is just basically them representing themselves as a qualified buyer that will close on the deal on quick or flexible terms.
Similar to an offer with no financing clause. In both cases, it makes no difference to the seller how the buyer funds the purchase, whether that's cash on hand, a line of credit, private financing, from a bank, as long as they get paid.
In a private deal or MLS, it all goes through lawyers who manage the transfer of funds and title.
Agreed. Its obviously a well polished shtick
In fact in Rand McNally they wear hats on their feet and hamburgers eat people
Deal Addict
User avatar
Aug 12, 2007
4685 posts
823 upvotes
Waterloo
Quentin5 wrote: Capitalism involves getting the most product/service for the least money. Whether by deception, lying, incomplete information or worse.
It is far more cutthroat then most of us want to accept, and thats why we need laws to smooth its rough edges. And of course conservatives try to undo laws, regulations and progressive taxation in order to get us back to pure unadulterated greed.
I'll give you some examples, worker safety regulations cut profit but protect human life. It is cheaper in many industries to sacrifice your workers health or life than to pay the costs of keeping them safe while they work for you. Minimum wage makes sure people can live on full time earnings. Laws that keep poisons out of food make sure we don't get sick or die for someone else's balance sheet. Building regulations make sure buildings don't collapse and kill their occupants because unsafe building practices cost less. Pollution laws make sure pollution is treated or kept out of the environment which is cheaper then pollution controls currently mandated. Electrical safety laws make sure we are not sold products that are unnecessarily flammable or have insufficient electrical isolation leading to fires and explosions because unsafe products cost less to produce. Laws that regulate financial markets are meant to keep out malfeasance. Heck, laws should be on the books everywhere that financial advisors have to work in their client's best interests instead of their own (it is on the books in some countries).
And in the case of this thread this is meant to lowball people who don't know better with an elaborate and apparently polished shtick. Information asymmetry i believe its called.
It seems we have had protections for so long that we have forgotten how things would work without them. And of course the regressive reality denying political party wants to undo them and make us believe lies that we would be better off without them.
its going to be out of context of this thread. But your definition is outside of capitalism's realm.
Its an economic method. crime is still crime.
----
Pay it forward.
[OP]
Deal Expert
User avatar
Feb 8, 2014
25936 posts
10674 upvotes
Socially Distanced
Supahhh wrote: its going to be out of context of this thread. But your definition is outside of capitalism's realm.
Its an economic method. crime is still crime.
Its my thread so i don't care if you go off topic, as long as its constructive.
Its only a crime if a law is written making it a crime. Morality and crime are related but not the same thing.

If someone lowballs you and you accept their offer not knowing better no crime was committed. But it is unethical.
In fact in Rand McNally they wear hats on their feet and hamburgers eat people
Deal Addict
User avatar
Aug 12, 2007
4685 posts
823 upvotes
Waterloo
Quentin5 wrote: Its my thread so i don't care if you go off topic, as long as its constructive.
Its only a crime if a law is written making it a crime. Morality and crime are related but not the same thing.

If someone lowballs you and you accept their offer not knowing better no crime was committed. But it is unethical.
The thread is a community item. Its not your thread. :)

a BB thread is a "idea" with which the communities shares thoughts and exchanges ideas. there is norms for it which should be respected.

your role remains as sort of moderator. But yes. its a community item.

You may start another thread for capitalism limits if you want
----
Pay it forward.
[OP]
Deal Expert
User avatar
Feb 8, 2014
25936 posts
10674 upvotes
Socially Distanced
Supahhh wrote: The thread is a community item. Its not your thread. :)

a BB thread is a "idea" with which the communities shares thoughts and exchanges ideas. there is norms for it which should be respected.

your role remains as sort of moderator. But yes. its a community item.

You may start another thread for capitalism limits if you want
Dude, i started the thread. If you want to get pedantic RFD has rights, mods police threads, we could even get into copyright law and who owns the content and what rights RFD does or does not have to the content, to police and so forth.
But who cares, its tangential.

These jerks are not doing something illegal by lowballing and using their scummy marketing tactics. But it can be called unethical.
In fact in Rand McNally they wear hats on their feet and hamburgers eat people
Deal Addict
Oct 23, 2017
2630 posts
2178 upvotes
GTA West
Quentin5 wrote: I seem to keep getting these "hand written" printouts from probably a couple dozen different "people" in the last year or two.
Are they flippers who want to buy below market price, are they actually legitimate, is there something else behind them?

A couple examples, both came yesterday.

IMG_20210122_025806574.jpgIMG_20210122_025816518.jpg
I assume it is one of those get-rich-quick real estate systems coming out of the US, where they promise rookies they can make a lot of money using the system, without having any of their own.

My take: The key element of this one is probably to find buyers willing to sell substantially below market value, say at 65% of market value, and then to flip the property at a higher price or to sell the sales contract to an investor at a profit. The people trying to do these deals probably have no money of their own, so the sales contract probably has conditions that allow the "cash buyer" to find a real investor to buy the property before closing.

Most people would not sell their house below its market value, which is easy to find out by asking a couple of real estate agents or looking at Zolo etc. And almost every offer to purchase is a cash offer, since very few sellers take back mortgages nowadays, so cash is not an additional incentive to sellers. Any seller who enters one of these deals is probably either not sound of mind or exceptionally foolish.

Top