We always start with "show me the money" when it comes to cash offers. The money to buy needs to be visible in an account in the name of the entity buying the property, not someone or some other business.
If it is not, they need to either get it into escrow or into an account that matches the buyer. You need to know they can close and there is no reason this should be any other way. It is a red flag when the money is not directly linked to the buyer.
There is no certain definition of an entity calling itself a Hedge Fund and buying real estate. There are legitimate groups with deep pockets out there, and many others who claim to be funded with millions and are simply trying to be the middle men in a sale without a broker's license and with no capital.
Your best defense is to have good advisers (Realtor, Attorney) on your side, and keep the pressure on them when it comes to time lines.
If it seems like it is too good to be true, it is. These buyers need an upside to provide a high return on their investment.... more