Rangeland Home Buyers is different from most “We Buy Houses” companies. Most of those companies are buying homes to either turn around and sell them right away or fix them up and sell them at a profit. For this traditional model to work you need to purchase the house at a discount compared to the “ARV” or After Repair Value. What this means is that you need to buy at such a discount that after spending money fixing up the home you can sell at a profit. The typical formula for this is that a “wholesaler” or “flipper” acquires the home at 70% ARV (after repair value) including all of their rehab costs factored in.
For a quick and easy example lets pretend a home has an after repair value of $110,000. That means if this home is updated and in great shape it will sell for $110,000. To get to this condition the home will need $30,000 worth of work which means windows, a roof, new kitchen and a new bathroom. This means that they need to buy the home for $47,000! $47,000 + $30,000 = $77,000 or 70% of $110,000. All this means is that typically these individuals are looking for a large discount. They need this discount to make their business model work.
We do not. The goal of our company is to buy as many homes as possible, make them nice for our residents and hold onto them forever.
This allows us to pay MUCH higher prices for houses than other companies can. If a home is worth $110,000 and needs $30,000 worth of work we can pay $80,000 for it. Why can we pay so much more? Because we are holding onto them forever and don’t need a discount to make our business model work! We do not turn around and sell to profit. We just need to continually buy houses, as many and as fast as we can. Our company makes a profit by renting these homes, not selling them.
If you’re looking for a market price with no hassles from a Realtor or having people in and out of your home we are the best solution. We’ll pay market price so skip the hassles. We will also rent back to you, move you or let you stay in the home for free for a few months while you figure out where to go. Help us help you. We love to make win win situations!