Who Buys Houses for Cash?

Escrow

• Traditional escrow processes can be lengthy simply because financial institutions require inspections of the property, thorough title searches and appraisals. There are also certain time requirements in which the procedures are allowed to take place in lengthening the time. Real estate investors who buy your house will often offer you a different type of contract that may not include these steps, allowing the sale to be quick.

Financing

• Common options include paying you a lump sum equal to either the full asking price of your home or less. Other times, they will offer the option of a monthly payment that is a little bit more than what you currently owe for a period of 24 months or longer with the option to purchase the home at anytime during that time frame for a set price. This is known as leasing with the option to buy.

Types

• Some investors specialize in only certain kinds of homes. There are luxury investors who only will work with high-end properties, those that specialize in manufactured housing, those that only buy multifamily homes and some who only purchase older homes in need of remodeling.

Benefits

• Working with a real estate investor offers more options and flexibility. Established investors bring with them established networks of buyers, home inspectors and appraisers. If needed, they can often have many of the same services the banks require to be done in a much shorter amount of time. This can help you prevent foreclosure, help you keep your equity you may have otherwise lost or get you out of more than one home payment.

Considerations

• The contract the investor will offer is a contract between you and them. Your financial institution may or may not agree to the terms of it for title recording and lien purposes depending on what your original contract states. If you choose to accept less than what you owe for payment and still enter into the contract, you may be responsible for the balance you owe to the financial institution. Your financial institution has to be able to release its interest in the property and may not do so under the conditions you set forth with the Investor. It's a good idea to always have these contracts reviewed by a qualified attorney before proceeding.

Locating

• The ads you see in local classifieds or on boards posted by the roads that say things like, "We buy houses fast," or "I buy ugly houses," or "Avoid foreclosure," and "I buy any house, anywhere..." are indications you would be working with one or more investors. Real estate agents may work with investors but are less likely to reveal their sources due to their client and confidentiality obligations. The National Real Estate Investor Association is a local nonprofit organization that is committed to educating and upholding industry standards for local real estate investor clubs and has an easy-to-use search page for finding a local association near you (see References).