I Buy Homes – Tips for Selling Your Home to Private Real Estate Investors

Many of the “I Buy Houses” signs you see posted on street corners and in front of houses belong to private real estate investors. In today’s down economy, a large percentage of homeowners are struggling to attract buyers. When homeowners need to sell their home quickly, they often turn to individuals or organizations that specialize in buying homes for cash.

Before calling the number on the “I Buy Houses” signs, it’s important to do your due diligence and determine the source. Unfortunately, there are many scammers in the world and currently the real estate market is a main target.

Thanks to the Internet it is relatively easy to locate information about anyone. Business owners must register in each state in which they wish to conduct business. In most states, the Department of Revenue oversees business records. Other states use the office of the Secretary of State.

The Attorney General’s office handles consumer complaints; as does the Better Business Bureau. Real estate agents and brokers are licensed through the Real Estate Commission.

To locate any of the above sources via the Internet, type your state plus the name of the organization, for example; California Real Estate Commission. These agencies can help you make sure you are working with a licensed, legitimate, and complaint-free real estate or business investor.

I buy houses in Southern California and work with a group of investors nationwide. Almost all of us have heard horror stories of innocent homeowners losing their property to foreclosure scams. Financial Mortgage, Freddie Mac, offers an article on avoiding foreclosure rescue schemes.

As an investor, people call me almost every day, begging me to buy their house. The biggest problem I find is the fact that people wait too long before acting. When they call me, they are terrified and desperate. It should not be like that.

I’ll give you the same advice I give everyone else. If you are behind on your mortgage, you need to call your lender now. I realize you may think your lender is the devil incarnate, but most banks will work with you if you don’t ignore their requests. Once a home falls into foreclosure, there is little room for negotiation.

If there is no hope of getting back on track, ask your lender to participate in a short sale. Lenders agree to accept less than what is owed on the loan if the borrower can sell his or her home within a specified period of time. Short selling is relatively complex and requires time and patience.

Short sale real estate is typically priced around ten percent below market value. In some areas, short sale properties sell for up to 50 percent below market value. It is best to work with a real estate investor who has experience in short sales and understands the process.

Selling your home to a private real estate investor is no different than selling it to any other buyer. The exception is that investors are experienced and know what to do and when to do it. Working with an experienced investor can simplify and speed up the process.

Finally, be sure to fully read and understand all legal documents before signing them. It is always a good idea to have your documents reviewed by a real estate attorney to ensure they are legally binding and to be filed in a court of law if necessary.