How do you know if cash home buyers are legitimate?

Asked by Stumped, 44094 Sat May 28, 2011

House not underwater, but want a quick sale - not profit oriented, just quick and clean - How do you tell if the assorted "cash-buyers" networks/groups are legitimate?

Answers

30
Perry, Home Buyer, Charlotte, NC
Sat Jun 11, 2016
If you are open to selling your house for cash at a discount or willing to allow the buyer to take over the mortgage this is a good strategy to sell your house fast. Make sure you go with a reputable company though. Id recommend .https://www.wanttosellnow.com/ they have an A+ rating with the BBB and lots of testimonials to back them up
183 votes
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Flag Sun Mar 3, 2019
Many sellers are impatient with the unrealistic comps (CMA's) and positive wishful thinking of their agents. Agents need listings for the Multiple Listing service to work. Listing agents know that sellers want maximum profit and they want it FAST. I can close as fast as it takes to record the sale. Do you want to watch strangers, sales agents and "looky loos" walking through YOUR house and criticizing your house as you wait one more listing of 90 days? Or do you want to close FAST! Once I make an offer with a large earnest deposit sellers should seriously consider my offer. I will rarely accept counter offers, there are many more sellers who want to close TODAY! It is always up to the seller.
Flag Wed Feb 6, 2019
I am a prudent and qualified buyer who can close FAST with zero contingencies. I prefer to go directly to the seller or listing agent rather than use a "Buyers agent". Most listing agreements place the Buyers agent subordinate to the listing agent. They did the work to get the listing why not let them get the benefit of the sales commission? The absolute most important issue for me beyond "location location location", and the actual house structure is THE REAL REASON for listing it TODAY! This is NUMBER ONE! If you want to know of my ability to close I can offer a 5% earnest deposit with my offer. If you want 10% I can do that as well. You do not need any inspections or approvals from a mortgage company with me. Yes I am at a potential risk of losing my earnest money deposit, so you must make it worth my time! I do this by not accepting a counter offer unless it is in my best interest. I am my own appraiser it is my money effort and risk.
Flag Wed Feb 6, 2019
The ratings from the BBB are purchased. It's all BS. Testimonials may or may not be real given that the ratings are not legitimate and a money making scam.
Flag Tue Feb 5, 2019
Proof of funds. Get a copy of their bank statement or letter from their bank saying that they have enough money to cover your loan.
Flag Tue Feb 5, 2019
If it is one of the flippers -get a HUGE escrow deposit so that they don't tie your house up for $100 Make them put up $3K or more - they don't like to do that, as it ties up their funds to get other homes in line while they often skirmish to find investors.
Flag Tue Feb 5, 2019
If you're selling yourself make the buyer present certified bank proof of funds. Ud you're using an agent rhey can do that for you.
Flag Tue Feb 5, 2019
This is a tough question because there is no real way to know if the person is a real cash buyer or just a middleman/wholesaler. The best company I have found is rebel home offers. I was very intrigued by the concept. They shop local cash buyers for you and verify them and say they will give you multiple cash offers from legit investors. check them out. https://rebelhomeoffers.com
Flag Tue Dec 18, 2018
https://www.youtube.com/watch?v=O4Llk232UgE They're really great if you need
Flag Sun Oct 21, 2018
How can I sell my house fast in Cleveland, you can check here]
https://www.youtube.com/watch?v=Zq-jm1rK-es
Flag Fri Oct 19, 2018
I've heard of https://www.youtube.com/watch?v=M907BVk4Vao as well know some people that recommended if you ever need house buyers Cleveland
Flag Tue Oct 16, 2018
Sold my house in San Antonio to this company. I can vouch for them. Gave me a fair price and they were able to close quickly.
Flag Sat Dec 9, 2017
Yes. They bought my parents home in New Orleans when I was out of state after I inherited it. Made the process really easy.
Flag Sat Nov 25, 2017
These guys are pros. Highly reccomended if you are selling your house in Texas.
Flag Tue Apr 4, 2017
My NC Homes…, Agent, Chapel Hill, NC
Fri Feb 21, 2014
If by legitimate you mean they have the money to close, it's simple they should be supplying you a evidence of sufficient funds on hand (typically a bank or brokerage statement. In terms of paying you fair market value, that's up to you to decide. If you're not sure what a fair value is, then you should be working with a local Realtor who can advise you as well as prepare all the necessary paperwork and who hopefully has enough experience to be able to discern the real buyers from those simply trying to take advantage of less savvy Sellers.
4 votes
Sharamtab, Both Buyer And Seller, Los Angeles, CA
Fri Feb 21, 2014
There are many investors in this rebounding market, many of them are "Flippers" who've gone through a seminar or two looking to make a quick buck. They've been told all they have to do is find sellers who either need to sell fast and can not risk loosing time, fooling around with financing and other contingencies, or those that do not want to go through the presentation process or show their ugly mess to others. Many of these Flippers do not have the funds or the financial backing to buy even one property, fast. They rely on "Hard Money Investors" for the investment funds. Obviously, in many of these situations, their offer to purchase a property would be contingent upon them being able to arrange the funds!
Therefore, the answer to this legitimate concern is to
1- Evaluate the buyers professional appearance, Their Website, their physical offices, their background and experience in the field.
2- Check the language in their offer. Is it a firm offer with a definite closing date, or does it have contingencies in it to leave them outs.
3- Ask to see "Proof of Funds" which is letter(s) from their bank or other financial institutions showing liquid funds readily available.

You can get more info at http://www.RemodelorSellit.com
Web Reference:  http://www.AssetFunders.com
4 votes
This information is very helpful
Flag Tue Feb 5, 2019
Jim Fichera, Home Buyer, New York, NY
Tue Feb 5, 2019
Call HomeVestorsthe WE Buy Ugly Houses people. We don't just buy Ugly houses but help people out of ugly situations. 1-800-44BUYER or webuyuglyhouses.com. There are over 1000 franchises nationwide. We have been in business since 1996. I am a New Hampshire Franchisee.
1 vote
Deborah Glatz, Agent, Yorktown Heights, NY
Tue Feb 5, 2019
The agent will provide proof of funds: bank statement or investment fund docs with the account numbers blacked out for security purposes. Most buyers will not provide this directly to the seller for confidentiality reasons. Agents are responsible for obtaining them to prove validity.
1 vote
Fort Home Bu…, Home Buyer, New York, NY
Mon Nov 26, 2018
best to know is that you have to contact on them and meet them on person , you can check our site https://www.forthomebuyers.com/
1 vote
Ken, Home Buyer, Willoughby, OH
Wed Sep 19, 2018
You can tell if the house buyer is legit if they are upfront with the homeowner as to exactly what will occur at closing. Example, assignment of contract versus double close, etc.

Also, the house buyer needs to let the homeowner know that he will indeed be making money on the transaction so that there are no surprises at closing.

http://www.CincySell.com
1 vote
Bridge Loans…, Mortgage Broker Or Lender, Los Angeles, CA
Mon Feb 1, 2016
As a hard money lender we provide proof of funds for these type of " rehab Investor loans" . However, often the seller needs to " sell my house fast" or obtain quick cash for a variety of reasons. In this situation we think it might be best for the seller to find a "direct home buyer" in their local city that can show sufficient cash reserves, Personally I would hate to be a potential house seller relying on a third party for " quick funds" Our 2 cents...
1 vote
Annette Law…, Agent, Palm Harbor, FL
Sun May 29, 2011
Stumped,
Christopher P gave you a response you can not ignore. Verification of Deposit from the buyer bank.
Many purchasing groups have desktop programs to issue Proof of Funds or Approval documents from organizations that offer investors 'hard money' for such purchases. If there is no ACCOUNTABLE third party, be prepared for surprises. Look for clues such as assignable purchase contracts or LLCs named as the purchaser.

Finally, you can ask for a non-refundable deposit that will be applied to purchase at closing. This means, the cash purchaser will need to compete the inspection before submitting offer, just like the process when purchasing a bank owned home.

If you are unfamiliar with these processes, you may want to consult a professional.
1 vote
, ,
Sat May 28, 2011
Many are legit and many others are scams. Proof of funds from their financial institution and a quick close date is all you can expect. Many alleged cash buyers place all kinds of language in their contracts which give them ways to tie up a property without committing to a purchase.

If the cash buyer is serious, they should be able to keep the "weasel" language to a minimum and be prepared for a quick close after showing you proof that they have the money in hand.
Web Reference:  http://www.phgbrokers.com
1 vote
Kindle Enter…, Home Buyer, Minneapolis, MN
Sun Mar 10, 2019
If you are looking to sell your house in Minnesota, visit https://www.RyanBuysHouses4Cash.com today for an all-cash offer. A big passion of ours is to help the communities become much more beautiful by helping people get out of tough real estate situations by purchasing their unwanted house fast. The benefits of working with us are that we can pay all cash, cover all fees, and close on your timeline. We strive to make the process of doing business with us 100% stress-free.
0 votes
Kadima Mashk…, Home Buyer, New York, NY
Wed Oct 10, 2018
These companies are really great for some case but not so much in others. It's a perfect fit for those who don't have a lot of time to wait for a buyer, need to relocate or avoid foreclosure etc.

I know of these guys and heard they're good
https://www.youtube.com/watch?v=mlft25TWkc4

But it is really a matter of the situation you're in.
https://www.youtube.com/watch?v=5J6klCaa5Ug

Let us know how did you sell so that I can check out some ways (planing on selling soon)
0 votes
Kadima Mashk…, Home Buyer, New York, NY
Wed Oct 10, 2018
You just have to make sure they can give you some good referrals. The same way you'd check any other company. Basically when it's all paid in cash there's no risk really.
You can check
house buyers charlotte:
https://www.youtube.com/watch?v=SpfQ-AbmVe8

how to sell my house fast charlotte:
https://www.youtube.com/watch?v=tt4NXgVZXyU
0 votes
Bbryant9094, Home Buyer, Willoughby, OH
Fri Dec 1, 2017
does legitimate buyers take pictures of the electric switch box in your home?
0 votes
Bhullarinves…, Home Buyer, Willoughby, OH
Sun Oct 9, 2016
We Buy Properties In Any Condition – Find Out If Your Houston Property Qualifies For Us To Make You A Fair Cash Offer.

Bhullar Investments
http://www.webuycashhomes.com | http://www.webuycashhouse.com
0 votes
James P. Ryan…, Mortgage Broker Or Lender, Washington, DC
Sun May 29, 2011
Hi Stumped,

As you can tell from the answers you have already received, verifying the funds is fairly easy and straightforward. I also like the suggestion to require a non-refundable deposit of 10% once you accept and ratify the contract....that will certainly filter out any looky-loo's.
Best wishes for a fast and smooth transaction. Jim, American Bank.
0 votes
Chuck Gollay, , Traverse City, MI
Sun May 29, 2011
Just as a purchaser who is financing must show that he/she is pre-approved for a mortgage, cash buyers need to supply proof of funds to verify that they have the money available. A letter from a banking official attesting to their financial wherewithal would suffice, too,
0 votes
Cecilia Sher…, Agent, Avon Lake, OH
Sat May 28, 2011
You have to make sure everything is spelled out properly on the contract. Proof of funds from the bank should be submitted and provided by the buyer.

RE/MAX Ohio
440-781-8737
Web Reference:  http://www.YouShouldOwn.com
0 votes
Christopher…, Agent, Tarrytown, NY
Sat May 28, 2011
Hi, an all cash offer should be accompnaied by a Verification Of Deposit from the bank proving the buyers funds are liquid. I have had instances where buyers have made an all cash offer and then changed to a mortgage halfway through. Make sure the language in the contract states that it there is no mortgage contingecny. This way if they do that the deal cannot be contingent upon them obtaining financing.

Chris
Web Reference:  http://raveis.com/chrispagli
0 votes
Marilyn Trav…, Agent, Mentor, OH
Sat May 28, 2011
Dear Stumped,

The buyer’s agent should request proof of funds from the buyer. Or your agent can request the proof of funds. A cash sale is usually much quicker than a buyer who needs to finance their loan.
If you have any other questions, I would be glad to help.
You can call me at 440-251-6803 or e-mail me at marilyn.travis@prudentialselectohio.com
Marilyn Travis
7395 Center St
Mentor, Ohio 44060
0 votes
Shanna Rogers, Agent, Murrieta, CA
Sat May 28, 2011
Hi Stumped,

Require buyers to submit 'proof of funds' with their offers.

Shanna Rogers
SR Realty
http://www.RealtyBySR.com
0 votes
Allan Erps, Agent, Pearl River, NY
Sat May 28, 2011
Why not ask for "proof of funds" from all parties!
0 votes
Phil Rotondo, Agent, Melbourne, FL
Sat May 28, 2011
If you're willing to practically give your house away, they're legitimate. But who wouldn't be?
Try giving a Real Estate Agent a chance......aggressively price the property and have it marketed this way on a short term listing. You might be surprised.
Web Reference:  http://www.321property.com
0 votes
James Gordon…, Agent, Hamilton, OH
Sat May 28, 2011
Stumped make sure that you are closing with a title company and the deed transfers. For the we buy your house quick any condition type groups be prepared to take 65% of fair market value. They have to make money and take the risk of marketing and selling the home along with their holding costs until it sells.
0 votes
Brandonbuysd…, Home Buyer, Forney, TX
Tue Jul 31, 2018
if you want to sell your house try visiting sites like https://www.brandonbuysdallas.com since they buy houses.
-2 votes
Mike Otranto, Home Buyer, Raleigh, NC
Wed Jun 20, 2018
Like every other major purchase a consumer can make, it depends on the company you do business with. Do they have reviews on reputable sites such as Google Reviews, and BBB? Are they a local company, are they transparent about their identities and their processes?

I would avoid the generic websites that just say "We Buy Houses" with a lead form attached. These are companies that collect "leads" and sell them off to the highest bidder. These companies call me all the time trying to sell me "hot leads"--I always hang up on them.

Do business with a local company with a strong local presence. I am transparent about my reviews and BBB status on my website http://www.MikeOtranto.com for a reason.

Happy Selling!

Mike
-2 votes
Timnebie, Home Buyer, New York, NY
Mon Mar 26, 2018
Try http://houstonbesthomeoffer.com in Houston. I hear they are great.
-2 votes
Annette Law…, Agent, Palm Harbor, FL
Fri Feb 21, 2014
This question was posted May 2011. ------------ Now it is Feb 2014. Things have changed. Many banks who are involved in distressed sales are relying on AUCTIONS.........Even when there is a qualified buyer in place! .....Lot's of buyers are sifting sand looking for deals and think Auctions offer that opportunity. The outcome, however, rarely favors the deal seeking buyer. Addressing Stumpes question, you don't qualify the buyer.....the auction house does.
-------Don Trepper provided a textbook regarding the most frequent options.
-3 votes
Don Tepper, Agent, Burke, VA
Fri Feb 21, 2014
Although the advice regarding proof of funds is correct, that provides almost no assurance. I know more than a dozen hard money lenders who'll give me a proof of funds letter. It basically states that if the transaction meets certain criteria, the money is available. (Criteria tend to be a purchase price no greater than 65% of after repair value minus repair costs.) So don't get reliant on "proof of funds." Heck, if you're willing to sell the property for 65% of ARV minus repair costs and you've got some time, just put it on the MLS. The advantage of investors buying at a discount--to the seller--is a very quick close and the ability to sell the house in "as is" condition. There's only one national network--a franchise--that I'm aware of that does that. They're the ones who advertise "We Buy Ugly Houses." Otherwise, investors tend to be local or, at best, regional. One way to help tell if they're legit is to ask them about past transactions and ask them for references which you can check. Another tip: Try to determine if the company making the offer actually plans on buying or whether they plan on assigning the contract; the latter are called "wholesalers." There's nothing wrong with wholesalers at all, but for the transaction to work, the wholesaler then has to find someone else to assign your contract to. You often can identify wholesalers by looking for language in the purchase offer stating that the purchaser is "XYZ and/or assigns." Again, there's nothing wrong with wholesalers; I know plenty of legitimate ones. It's just that there's an additional way for the deal to fall through. Hope that helps.
-3 votes
Yes, this does help. I was considering one of these deals, but you saved me the trouble.
Flag Mon Oct 26, 2015
My NC Homes…, Agent, Chapel Hill, NC
Sun May 29, 2011
If you're refering to the people who put up signs saying "We buy homes for Cash" most are legitiamte however they will be bottom feeders. If they offer you a price of 60 cents on the dollar you'll be lucky. If you're talking about buyer who is making a cash offer you should receive eveidence in the form of a letter from their bank or brokerage house indicating that they have sufficent funds to close or copies of the bank/brokerage statements. I would also adivse you to take a significant deposit right up front. Think $10,000 - $20,000.

Finally you really should get yourself an agent of attorney who can help you with the paperwork and who's job it is to protect your interests.

Good Luck.
-4 votes

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