They are wholesale middlemen. They make a high offer to get your contract, then try to sell it to a real investor. When they can't — they come back and pressure you to accept less.
Written by Connor Morris, Licensed CA Real Estate Agent (DRE #02219124) and Owner of Skyline REI Group — one of the investors these companies call when they can't close.
Connor Morris
Licensed CA Real Estate Agent · DRE #02219124 · Owner, Skyline REI Group · 47+ Purchases Completed
"I am one of the investors that the large wholesale companies call when they can't close a deal. I receive their assignments regularly. I see the original offer they made to the seller, the assignment fee they're charging, and the situation they've put that family in. I've watched sellers — people who just lost a parent, people facing foreclosure — get told their offer is being cut by $30,000 two weeks after they signed a contract and started making plans to move. This is not an isolated incident. This is the business model."
Step by step — what actually happens after you call a "We Buy Houses" company
The wholesaler makes an attractive verbal or written offer — often above what you expected — to get you to sign a purchase contract. The offer feels real. It isn't.
Once you sign, you're legally bound. The contract typically includes an assignment clause ('and/or assigns') that lets them sell your contract to a third party. You may not notice this language.
Now they start calling real buyers — including companies like Skyline REI Group — trying to sell your contract for a profit. This is called an 'assignment fee' and can range from $5,000 to $50,000.
If no investor will pay their price, they return to you claiming 'inspection issues' or 'market conditions' and pressure you to accept a lower price. You're already under contract, already made plans. The pressure is real.
Most sellers in this situation accept the lower price because they feel trapped. Some deals fall apart entirely, leaving the seller to start over — having lost weeks or months in the process.
Check every one of these before you sign anything
A real cash buyer has money in the bank and can provide a bank statement or proof of funds letter within hours. A wholesaler has no money — they need to find a buyer first. If they stall, ask for wiring instructions and watch what happens.
Look at the buyer line on your purchase contract. If it says '[Company Name] and/or assigns' — stop. That means they are legally reserving the right to sell your contract to someone else. You are not selling to them. You are selling to an unknown third party.
Real cash buyers inspect quickly — usually 5–7 days. Wholesalers need 14–30 days because they're using that time to find a buyer. A 30-day inspection period on a cash deal is a major red flag.
This is the most damaging tactic. They make a high offer to get the contract, then return 1–2 weeks later claiming 'our inspection found issues' or 'the market shifted.' They pressure you to accept less. By then you've already made plans to move.
Real cash buyers don't need to spend millions on advertising because they close deals. The companies with the biggest marketing budgets in Fresno are wholesale operations — they need volume because most deals fall apart.
Ask directly: 'Are you the end buyer, or will this contract be assigned to someone else?' A legitimate buyer will answer immediately. A wholesaler will deflect, change the subject, or give a vague non-answer.
Urgency is a sales tactic. Any legitimate buyer will give you time to review the contract with an attorney or agent. If they're pushing you to sign today without review, that pressure exists because the contract benefits them, not you.
You called 'We Buy Houses Fresno' but the contract says 'XYZ Acquisitions LLC.' This is common in wholesale operations — the marketing brand and the legal entity are different. Ask why.
Side-by-side comparison — know what you're dealing with
A real buyer will answer all of these immediately. A wholesaler will not.
"Are you the end buyer, or will this contract be assigned to someone else?"
"Can you provide proof of funds today — a bank statement or wire confirmation?"
"What entity name will appear on the purchase contract?"
"What is your inspection period, and what happens if you can't close?"
"Have you purchased homes in Fresno before? Can I speak to a past seller?"
"What is your DRE license number? (Required for licensed agents — not for wholesalers)"
Alder Heritage Homes is operated by Skyline REI Group — a licensed California real estate company (DRE #02219124) that purchases homes directly with our own capital. We have completed 47+ purchases across Fresno, Kings County, Tulare County, and the Central Coast, including a $975,000 probate purchase in Solvang. We are not a wholesaler. We do not assign contracts. When we make you an offer, we are the buyer.
In California, wholesale assignment of real estate contracts without a real estate license is a legal gray area that is increasingly being challenged. AB 1837 and other legislation have tightened rules around investor purchases. However, even where technically legal, the practice of making high offers to get contracts and then reducing the price is ethically problematic and often causes significant harm to sellers.
Ask for proof of funds immediately. A real buyer can provide a bank statement or wire confirmation within hours. Ask if the contract will be assigned to another party. Look for 'and/or assigns' language in the buyer line of the contract. If they can't answer these questions directly, you are likely dealing with a wholesaler.
Review the contract carefully for cancellation provisions — most purchase contracts have a contingency period during which either party can cancel. Contact a real estate attorney or call us at (559) 281-8016. We can review your situation and advise on your options, including whether you can cancel and start fresh with a real buyer.
No — but the large ones running TV commercials and heavy advertising in Fresno are typically wholesale operations. Smaller, local companies with a licensed agent and verifiable purchase history are more likely to be real buyers. Always verify proof of funds and ask about assignment clauses regardless of company size.
Because they don't intend to pay it. The high offer is a marketing tactic to get your signature. Once they have the contract, they have leverage. If they find a buyer at that price, great. If not, they pressure you to accept less. A real buyer makes an offer they can actually close on.
No. We are the end buyer. When we make an offer, we are purchasing the property directly with our own capital. We do not assign contracts to third parties. Our DRE license number (02219124) is publicly verifiable through the California Department of Real Estate.