For most people, selling a house is the biggest transaction of a lifetime. Sadly, there are some people who would want to take advantage of you during this chaotic and vulnerable period of life. Sometimes, that real estate investor you are talking to is a scam.
Selling your house to a real estate investor can be good choice for many homesellers. There are many trustworthy companies out there, such as Sparks Property Investors LLC, and they will be willing to help you any time of a day. However, there are still some people who don’t wish you well and will only try to find a way to take your money from you. This makes everything worse for people who are struggling, especially in the time of crisis, as the last think you’d need is to deal with scammers.
Scams aren’t a new thing, but they are on the rise in the age of a worldwide Covid-19 pandemic. This is why we have decided to help you differentiate good from bad. In the end, no one should fall victim to these shady practices, and you deserve only the best. Here are some precaution measures you should take if you are selling your house to a real estate investor with no references.
Look at the Way They Talk
Any investor will love to talk. This is great for homesellers, as most people won’t have the opportunity to work with investors more than once. Investors will love to inform their clients to help them understand the process. However, the way they talk can reveal a lot about them.
A good real estate investor will be informative and you will walk away from the conversation knowing more than you did before. On the other hand, scam investors will constantly talk in circles. They won’t know much about the process and they won’t be interested in helping you, so they’ll repeat the same information over and over again. They will promise you that they will purchase your house, but won’t give you concrete information on the process.
Also, scam real estate investors won’t bother to answer your questions. They will talk around them or even completely ignore them. Their only goal is to close the sale and they will promise you untrue things just to make you give your property to them.
When you talk to professionals at Sparks Property Investors LLC, you will get answers to each and every of your questions. They won’t leave you confused and worried and you won’t feel like the conversation is one sided.
Beware of Empty Promises
Working with a real estate investor is very different from working with a real estate agent. First off, investors will usually pay you less than a market value of your house, but you won’t have any additional expenses, so the profit will usually remain the same, if not even better than after a traditional sale. This is especially true if you are selling your property as-is, with damages and unfinished repairs.
If your investor promises you a large sum, there usually is some catch that you aren’t aware of. The reason for this is simple: real estate investors have to profit from your house later on. The same goes if the investor tells you that you can live in your house, for free, after the sale is closed. Typically, the investor will become your landlord and you will pay them monthly rent until you’ve found a new place to stay. If they tell you that you will be able to stay in the property for months without paying anything, something is fishy. Typically, when this happens, the scam real estate investor will then file a deficiency judgment that you will have to pay on top of the rent you didn’t know you had. This is why, if you sell to Sparks Property Investors LLC, we will always discuss with you all the terms and conditions in advance, to find a transparent way that can help both sides be satisfied.
Look for Testimonials
Usually, you won’t be the first person who wanted to work with that particular real estate investor. Customers love to give their opinion, especially online, so you are likely to find some reviews and testimonials on them. If the reviews are bad, or if there aren’t any, the company is likely fake or unprofessional. Great companies are always happy to show everyone the kind words their clients had to leave. The only reason why a company would hide these reviews or not allow them is if they have a lot to hide.
Double Check the Paperwork
Sometimes, the reason why you can’t understand the paperwork is because it is made to be deceiving. It is perfectly fine for any document to have a lot of legal vocabulary and if you need some help to understand it, it’s not a reason for concern. Also, a good real estate investor will always take the time to explain every sentence.
If there are any fees in the paperwork that you didn’t discuss beforehand, that is a sign of concern. When you get an offer from Sparks Property Investors LLC, that is the amount you’ll get, fees included. You shouldn’t have to pay for anything else. A good investor will pay for all the repairs and closing costs and there are no commissions involved.
Also, how you are asked to sign the documents is equally important. Scam investors will push you to sign before you’ve had the time to fully read everything and they will get angry if you ask for a few more minutes. They might even request that you sign the papers in private, without a lawyer. Sparks Property Investors LLC will never push you to sign papers faster and your lawyer should always be there to make sure everything is fully legal and disclosed.