These days it’s not uncommon for businesses to use the term “cash for” and then whatever item or asset they’re looking to purchase. “Cash for homes” has been a very popular term in recent years. Many investors, developers, and hobbyists are looking to solidify their position in the real estate market.
The popularity of equity development through real estate purchasing is not a bad thing, and it indicates that real estate and especially residential real estate is a strong and solid market today. Regardless of other markets, real estate is one of the most reliable investments to be made.
Unfortunately, it’s hard for homeowners, property owners, distressed property recipients, and those in the middle of the probate process to understand which businesses are qualified to offer cash for their property. It can be difficult to understand which ones are qualified and which ones are scammers.
In this article, we will provide tips to help you be on your best guard when selling your property. Learn what types of businesses and individuals you can trust are qualified to offer cash for homes.
See our five tips below to help you ensure your property is transitioning into qualified hands.
1. Be Aware of First-Time “house flippers”
There have been so many tv shows and get rich quick schemes produced in the past 10-20 years, that people who have very little understanding of what it takes to successfully renovate and redevelop a house or neighborhood are trying to get into the business.
The problem with this influx of new “DIY Developers” is that is can adversely affect neighborhoods and leave property owners in a frustrating struggle to get the cash offer they were promised, on time.
Also, first-time home renovators may not have calculated their costs correctly. They can end up running up lots of debt and abandon the project halfway through, or never finish it all.
It’s quite a discouraging and depressing experience for people who are hoping to transition their property into something positive. These property sellers want to help their local community, but instead, it becomes an eyesore and brings down property values of homes around it.
The unqualified home renovator can end up creating negative fallout from their unsuccessful efforts.
2. Make Sure They Have The Money
Homeowners, property owners, and distressed property recipients need to be wary of individuals or businesses who promise them cash for their property but may not have any funds for the purchase.
These scammers can be easy to spot in early conversations because the individual or company in question will use “high-pressure” tactics to acquire the property. They use terminology like “I can only give you this offer today” or “The cash is on the table” when in all likelihood they have no cash to put on the table. This is a stall-tactic to help them buy time and to try scrape together enough capital to write the first check.
If possible, meet with the prospective buyer and ask to see formal bank statements, deeds, and lists of properties that they have purchased for cash before. Doing so background information research may save you a large headache.
Are You Thinking About Investing In Local Distressed Properties? Learn More From Our Blog: Should I Invest In Local Distressed Properties For Sale?
3. Ask to See a Portfolio of Their Work
Reputable real estate investors, property developers, and renovators will be ecstatic to show you their work, they will not be guarded or bashful about previous projects they’ve completed.
An Accomplished developer who is offering cash for homes will be well-polished and very intentional with investment decisions.
If you are contacted by someone offering cash for your property, but they do not have a portfolio, website, social media presence, or someone available by phone, they could scammers.
Professionals who are in the redevelopment business for the right reasons will not be difficult to contact. They will be happy to offer you insight and any information you need regarding their processes.
If you find yourself in the middle of the probate process, a reputable redevelopment professional will provide their insight and helpful information, even if it doesn’t end with their best interests in mind.
4) Ask For References
Scammers will not have a list of people or previous clients you can contact to vet.
Most of the time, scammers will operate completely online and avoid being accessible by phone. This is because a savvy seller will know whether they are fraudulent or not by asking the right questions.
If a buyer cannot produce any references at all, it’s a clear indicator you’re not dealing with a reputable person or professional.
If you’re in the middle of the probate process, looking to avoid foreclosure, or simply want to chat and get some trustworthy advice on how to best transition your property, please contact us.