We’re buying apartments. You’ve either seen their signs or heard their radio commercials. They are spreading their message even in a competitive real estate market. Yet, who are these people and how can they be able to buy houses all the time? Where are they getting the money? What are they going to do with those houses? Let’s take a peek. For more info go right here.
They’re investors, first of all, and investors want to make money. Since they have been around for a while now, it is probable that their business model is working for them, even in challenging economic times. They make money.
There will be some items in their presentation as they meet a homeowner who is considering selling his or her house. This is what you’re going to expect:
- We’ll be paying cash;
- We’re going to settle fast;
- No fees or commissions to be charged to a real estate agent will be charged;
- They will probably ask you how much you owe in mortgages and other liens on the house;
- For some kind of checks, we’ll have no contingencies;
- In its as-is condition, we will buy your house;
- There will be no maintenance you need to do;
- They are likely to walk around and through the house performing an obvious assessment of its condition;
- While they are going to buy the house as it is, they are always going to point out the stuff they see wrong with your house;
- They are going to make you a bid and they are going to have the paperwork ready to go.
- It sounds like a very good direction to follow so far. It’s a hassle-free way to get your house sold.
- Indeed, it is an expedient and advantageous way for a homeowner to sell his or her home in some instances. This isn’t always the case, however. Let’s look a little closer.
You can earn cash when you go to the settlement table, even though the buyer is having a loan to buy the home. If you fund the house yourself, which is seldom the case, the only way you won’t earn cash is. They should send you a pre-approval letter before the buyer gets a loan, and they should finally show you a loan agreement letter from their lender. It is almost as good as the purchaser getting cash when this happens. You should take similar measures to that of a buyer using a loan when someone is paying with cash. First, they should have proof that they have the money, and second, they should eventually be able to put it in an escrow account before payment, which would decide that the object of the money is to buy the house. They are likely to be hesitant to do this.
15 days could be a fast settlement. If they really have a contract that is for a settlement of 15 days, then you can ensure that you can settle that quickly. It is more likely that a settlement of closer to 60 days would also be issued. It is not fair to settle for a 2 month settlement date, but their main reason for doing this is that they don’t really want to buy your house. If they really have cash, then within 2 to 3 weeks they could settle easily. They are, however, seeking to find another buyer during this 2 month time period. They would sell the house to that buyer at a price higher than what they are paying you if they find another buyer. They will allocate the contract to another customer in this case and the price differential would be considered an assignment charge. If all their deals go like this, then they’re never going to need any money to come up with. Bear in mind, however, that an assignment is not authorised in certain cases, so they may go ahead with the transaction, but typically only if they have another buyer lined up to whom they can sell the house immediately. They would look for an excuse to get out of the deal if they do not have another customer ready to go.