There are plenty of “homebuying” or investment companies out there. If you have any equity in your home whatsoever, you have probably been inundated with letters from investors over the past couple of years. So, how do you sift through your options and find a legitimate real estate investor who will close on your property? Here are some foolproof ways to determine if the person contacting you is the real deal.
1. Ask for the investor’s website and look to see if there are any online reviews– positive or negative.
Inheritably, shady investors tend to hide in the shadows, and don’t want people to know how to find them. So, make sure you are making an educated decision about who you are deciding to sell your home to. If you cannot find a website, google reviews or a BBB rating for their company, think twice before signing any kind of agreement. In other words, do your research before signing anything!
2. Ask the investor for proof of funds (POF).
Proof of funds is a document any real investor will have readily available if requested. A POF ensures that you are working with someone who can afford to purchase your home. If there is any hesitation on the investors part to provide this to you, this is a huge red flag. In other words, their offer may not be a legitimate offer.
3. Is the Investor using a FAR-BAR As-Is contract?
The FAR-BAR As-Is contract was developed by the Board of Realtors and their attorneys. Meaning, the language in this contract is meant to be un-biased and fair to both the seller and the buyer involved in the transaction. In conclusion, if the investor is trying to have you sign any other kind of agreement, they may not have your or your family’s best interest at heart.
4. Check your respective county’s property appraiser’s website to ensure they have done business there and closed on other properties.
Consequently, you will have peace of mind by knowing they have local knowledge of the market that you are in. Also, you know the investor has the ability to successfully fund and close on your property. In conclusion, you will know you are working with someone who is the real deal.
5. Ask if the investor has their real estate license.
A person’s home is normally their largest asset. Typically, People pour years of blood, sweat, and tears to finally become a proud homeowner. Wouldn’t it be desirable to speak to an esteemed licensed professional? Would you let someone without a medical license conduct a surgery on you? Think about that for a second. So, by working with an investor who is also a licensed real estate agent, you can have some reassurance that they know what they are talking about. In short, work with a licensed professional.
Lastly, make sure that you know who you are doing business with. There are many fly by night companies that will try to take advantage of unsuspecting sellers. Above all, do your due diligence before making any kind of big decision.
If you have any questions or are interested in what your property may be worth, please feel free to contact the professionals at Homeinc. You will receive a free property analysis and a no-risk cash offer within minutes. Call or text the team today 1-888-850-2636.
Credit: Thomas Connor