If you have driven around your town, chances are you have seen some advertisements about companies that buy houses fast. Often they say things like “We Buy Houses Nashville!” or “Sell House Fast Orange County!.”
Are these companies credible? Below, we will discuss signs of prominent real estate investors/house-flippers vs. warning signs of shady ones.
What Reputable House Buyers Are Doing
• Helping people in desperate situations by giving them the cash they need quickly. People often need the money in their house to relocate, to help with medical expenses, or even need the money fast due to a job loss.
• Helping sellers get rid of a burdensome property without the wait and the hassle. Sometimes it can take a while to sell a property. Whether it be an inherited home or just a home in terrible condition, real estate investors can buy these homes fast without the headache of waiting for it to sell.
• Increasing the value of neighborhoods. When house-flippers improve a house, they are helping to enhance the value of the entire community. They often repair abandoned and neglected houses, turning them into beautiful homes for families.
Lots of people think of house-flipping as a get-rich-quick scheme, but it can be an honest way to make a living.
Warning Signs of Shady Investors
• Kitchen Table Closings – If a real estate investor tries to get you to sign the deed of your house over to them at the house, rather than a professional place like a title company or attorney's office, be careful. Reputable house-flippers will perform the actual closing of the sale at a neutral 3rd party place.
• Pressure for A Fast Closing – If a home buyer tries to pressure you into selling your place and says that you must make the decision within 24 hours, be very careful. Most real estate investors will make an offer, and that offer will be on the table for at least 2-7 days for you to decide.
• Doesn't Like Answering Multiple Questions –
Many dishonest investors are looking for a quick score and do not want an in-depth interview. They'll even find excuses to get off the phone and move on to other potential sellers. Ask open-ended questions to ensure they’re reputable and honest.
· How do you help your clients?
· What makes you different from other real estate investors in the area?
· How would you describe your investment philosophy?
· How do I know that I'm getting a fair offer for my home?