What to know about Real Estate Investors
You’ve made the decision to put your family’s home up for sale. Although difficult, you’re excited about what “tomorrow” may bring and the possibilities of what your newest endeavor will endure.
However, offers remain stagnate. Each day becomes more frustrating as fewer and fewer buyers take interest in your listing. Money and time are now of the essence as each passing day prompts new costs from real estate fees, mortgage payments, utilities, repairs, etc. Winter is also quickly approaching, which means selling becomes even more difficult as inclement weather depreciates the home’s value to a certain extent.
You’re running out of options, as the imminent fear of not being able to sell your home for its deserved market value looms to threaten you and your family’s lifestyle.
Suddenly, you’re approached by a new idea. An idea that avoids the traditional methods of working with a real estate agent and beckons as the quick, easy and money-saving alternative you would need to keep your family afloat.
A real estate investor has approached you with interest to buy your home.
Over the past decade, the real estate market has industrialized into a process that has become ever-increasingly methodical in how homeowners do business with agencies. However, if you’re yet to encounter a local real estate investor—consider this a unique, viable option to selling your home quick, easy and with cash in hand.
If choosing to elude from the more traditional methods of real estate seems ideal, here are the advantages and disadvantages of working with a local real estate investor:
- Adaptable Payments– Investors are known to find homeowners exclusive options tailored to fit their financial needs and personal circumstance. From cold-hard cash to certified funds, to pre-scheduled cash payments to opting to finance the existing mortgage (which can provide a substantial benefit if paying off mortgage is the main reason you’re yearning to sell in the first place.)
- Customizable cash offers. Local real estate investors do offer other flexible payments options that differ from traditional real estate earnings. For example, real estate investors are looking to close deals fast, so, potential buyers don’t have to wait extended periods of time in regards to financing and other due-process ‘bank’ procedures.
- “For what’s in worth…” In most situations, investors often will purchase a home for its original asking price; in other words, buying “as is.” It is common for investors to purchase a home without even ever setting one foot in the door, which can dramatically assist homeowners on a tight budget. Typically, when you sell a home through a traditional real estate agency, more fees are involved such as commission, closing costs, repairs and Open House costs—investors denote this, as their chief priority is “flipping” your home to an impending buyer.
- The risk of reward. Real estate investors, who are infamously renown for selling below market value, use their cash offer payment method and buying “as is” to leverage their argument. Selling your home quickly surely has its financial benefits, however, to the investor, they are now responsible to pay off repairs, existing mortgagees, closing costs, taxes, holding costs, etc. Selling below market value is largely how real estate investors make their business work.
- Scam Investors. To avoid scam artist, you will have to keep a closer eye on any behavior that you may warrant as suspicious. As with all salesmen within all waves business, scamming exists and always will—and it’s very much an art form. When approached by a real estate investor, receive as much information as possible; for example, references, research thru third-party sources (e.g., Better Business Bureau), write down phone numbers, review portfolio, etc.
Remember, there is a difference between a resilient salesmen and one who “steps over the line.” Pay attention to your gut, and if you’re concerned threaten to call the authorities.
- Vagueness. As the seller, you will most likely know nothing about the person/entity who is offering to buy your home, which requires you to be at your most consumer-savvy. Some real estate investors do happen to work in tangible corporations, but many operate independently, where many act real estate agents incognito. As a result, many homeowners who opt to work with an independent investor don’t know if their home will be resold, tore down or bought.