Because of how the media portrays home flipping and investing, more and more people are trying to get into it to cash in on the trend. However, not all investment companies are worth working with. Even worse, some of them are even operating illegally, which means that, by choosing to work with them, you are at risk of fraud and being scammed.
Of course, there are reliable investment companies out there as well; companies who actually operate within the legal bounds of the law and will make sure that your money is safe.
You’re better off waiting for those companies instead of risking it with a shady business. Otherwise, you’ll just be putting yourself at risk for the following issues:
- One-sided contract terms
Unless you do your due diligence, an amateur home investor will take advantage of your knowledge, or rather, lack thereof, when it comes to the home selling process.
Amateur home investment companies, or in worse cases, con artists, will try to convince you on accepting a “good” offer. They’ll hope that you’ll say yes eventually because of how persistent they are. Some of them might also try to make the terms look like it’s catered to benefit you the most, when, in fact, it mostly only favours them.
- A deal that will never happen
Amateur home investors will try and see if you are gullible enough to fall into their lopsided contracts and deals. They’ll try to appeal to your emotions and promise you a lot of things. Some might even tell you that they’ll be able to sell your home at a much higher price and give you more money, if you only signed with them.
As a good rule of thumb, if a deal sounds like it’s too good to be true, it probably is.
- The “rent trap”
Amateur home investors and scam artists prey on homeowners who are looking to sell house fast because they’re either moving abroad and don’t want to deal with their property anymore, or are trying to avoid foreclosure.
Majority of the bad investment companies will try to get you to sign a deal where you’ll transfer ownership to them and avoid foreclosure while also getting a chance to continue living in your property provided that you pay them rent.
This is a common scam that a lot of people have fallen into over the years. The worst part? You’ll end up paying a lot more money to the investment company instead of netting some profit from your house sale.
The best investment companies are reputable and have a lot of testimonials, as well as reviews online.
Make sure that you do your research right and choose a home investor that has your best interests in mind.
If you’re looking for a quick sale, just because or you want to avoid foreclosure, feel free to contact cash buyers as ourselves. We buy houses NJ cash, as is and with no strings attached. Not only that, but we buy houses for a fair price as well.
