2022 Review: Why home sellers prefer to work with Alpha Capital Funds
Selling a house is never a walk in the park as it involves time-consuming processes that often leave sellers incurring costs and charges the longer the deals stretch out. It's not surprising that the National Association of Realtors reported that in 2021 cash sales accounted for 23% of home sales in the US, a seven percentage point increase from the previous year's cash sales which suggests a shift in the way sellers want to close home purchases. Additionally, the current trend in the market, where inventory is tight and demand is high, pushes buyers to offer payment in cash to win bidding wars.
While a significant chunk of the payment goes toward repaying their mortgage, many sellers find cash offers more appealing for several reasons. It gives them confidence that the deal goes through and that the process is faster and simpler. They're also less likely to deal with stress from appraisals.
The shift in the trend paved the way for real estate investment firm Alpha Capital Funds to take center stage as the fastest-growing iBuyer in the country, providing higher cash offers to sellers.
Most people making cash offers will tie up the property, try to find an end buyer, and ultimately won't close on the property and the transaction will be a mess. In some cases, some iBuyers will charge up to 15% in commissions. This is where Alpha Capital Funds separates itself from the rest.
Alpha Capital Funds' business model doesn't include any commissions or fees on both sellers and buyers. The firm's ability to fund higher cash offers and commitment to remain transparent have been pivotal to its success for the last 5 years. Under the leadership of 26-year-old Founder and CEO Tyler Smith, Alpha Capital Funds has bought and sold thousands of properties over the past years. Its in-house teams for transactions, construction, and property management have enabled it to close deals faster.
Transparency and higher cash offers have certainly placed Alpha Capital Funds at the forefront, but that's not the only reason why sellers are quick to draw up deals with this firm. Sellers are more likely to close deals with iBuyers who have done similar transactions thousands of times than first-time cash buyers on the assumption that the transaction will go smoothly with established firms like Alpha Capital Funds.
If the firm's performance over the past couple of months is any indication, Alpha Capital Funds projects over $200 million in real estate sold by the end of 2022. This is a more than 100% increase in sales year-on-year, besting the performance of most real estate investment firms.
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