Has anyone heard of these investors that buy houses for cash and sell them back to you on land contract? Anyone done this? How does it work?

Asked by Sherry, Taylor, MI Sun Sep 20, 2009

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5
Andy Hargrea…, Agent, Plymouth, MI
Fri Nov 6, 2009
I know of several people that do this.
In fact, one of my clients does this as goodwill to divorced/battered women in partnership with a shelter, as she was once a divorced woman and is empathetic to people in hardships.

I'm not suggesting that you're like this, of course...but sometimes, the glass is half full too as compared to a number of answers I've read.

While the majority of people are in it for profit - sure, but not everyone is.
There are some people that are in it to make a scam, but there are some people that are willing to make a modest profit as well.

Make sure the deal is reasonable and worth your time and money.
Check their sources, past clients, etc.

If you have any questions, continue asking.
0 votes
Sherry, Home Buyer, Taylor, MI
Wed Sep 23, 2009
I hate it when people assume I have bad credit. Ugh.

Maybe the question wasn't clear because some of the answers don't make sense.
There is a property I want to buy. This company would pay cash for it and then sell it to me on land contract, yes a fee is involved. Maybe even too hefty for me to bite....we are hammering out details now. Anyway, I need to go through them because the house is bank owned and cash only. I don't have all that cash up front. That is why I might use this company.
Has anyone ever done this before? How did it work out for you? Who did you use?
0 votes
Joshstewart, , Northfield, OH
Mon Sep 21, 2009
Sherry,
Even if the investor arrangement isn't a "scam", you still will pay a hefty premium to compensate the investor for the risk.
I would recommend that you see about credit repair first and try to buy while the market is still favorable.

Josh Stewart
Preferred Mortgage Consultants
1-800-839-1019 ext 135
Web Reference:  http://www.pmcsmartloans.com
0 votes
Derek Bauer, Agent, South Lyon, MI
Mon Sep 21, 2009
There are also plenty of instances where this is legit. You and your agent should do your homework before purchasing, but no need to immediately assume it is a scam. Like always, buyer beware.
Web Reference:  http://DoorToDreams.com
0 votes
The Hagley G…, Agent, Pleasanton, CA
Sun Sep 20, 2009
BE CAREFUL!!!!! A lot of these are scams....and if your lender finds out that's what's going oin, they could come after you for fraud. Here's what you do....don't sign ANYTHING...especially your deed....just tell them you'll have your attorney look over the paperwork.
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