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I have my house up for sale. I had a investor that came to me, told me that he will promote my house to buyers for NO money down or will assist with the downpayment on the mortgage. He is willing to assist with 5%, 10%, or even 15%.
He is pricing the house at FMV. And I am secured at my number that I am looking for. So what you guys think?
The house is a single Family house in South Amboy, NJ....So they get to advertise on Craigslist, Home News, and the Star Ledger for me.
This is nothing more than my feeling; seems fishy.
Do explain.....I sat down with them, and they are able to finance anyone. Saw it with my own 2 eyes...Friend of mine used them. They bought a $340K house with this company and the company put out 5% for them.
Do explain.....I sat down with them, and they are able to finance anyone. Saw it with my own 2 eyes...Friend of mine used them. They bought a $340K house with this company and the company put out 5% for them.
Well... you said this person is an investor. They are going to give someone downpayment money, and sell your house, and market it.
I'd say it sounds a bit too good to be true.
Might not effect you in any way, but I'd be sure to read the fine print as to how the money would exchange hands, what you get, so on. It sounds to me like the intention is for the investor to "sell" it as a lease with the option to buy, or if the primary focus is the mortgage, they would take advantage of the buyer by giving a low rate right off, but shooting it up later.
It just doesn't seem right to me, thats all. Could be all well and good, I wouldn't have enough info to tell you specifically what could be wrong, just a gut feeling about statements like that.
Well I understand....There are more to this. Just alot to type.....
When they market my house......Lets just use these number for example.....
Market my house for $300K <----Not the real number for my house.
I sign a contract I will recieve $275k at closing....So They have $25k for them as comission, but they use that for the downpayment assistance for the buyer.
It just looks too good to be true without some type of hook. Like CuCullin, I do not know what that hook is, but what does they get out of the deal? How can they promise a bottom line to you without a contract in hand?
I have no problem believing they can finance people. There are many ways to screw someone over on a loan if they are desperate enough.
I, myself, have entered into contracts I would never have signed if my circumstances were more advantageous. I have sign contract for deed with a high interest when I had a house for sale and could not obtain financing through any mortgage company and the seller did not want to have the legal issues that come with a foreclosure if I did not live up to my payments. I had to have a home and figured I could refinance later when things are better in my life, so I took the deal.
There are many people is similar or worse situations that unscrupulous folks can take advantage of. This guy justs sounds like one of those unscrupulous dealers. You might come out fine and they make their money on someone else, or you could be headed for a scam too.
Keep your eyes open if you decide to follow up on this. We don't know what the deal is, but it certainly is bright and shiny and designed to attract suckers.
Well they get whatever is left from the Fair Market Value that the house is marketed at. But that is what they use to assist buyers as well. Thats how they are making there money. But I understand what you are all saying.
I have my house up for sale. I had a investor that came to me, told me that he will promote my house to buyers for NO money down or will assist with the downpayment on the mortgage. He is willing to assist with 5%, 10%, or even 15%.
He is pricing the house at FMV. And I am secured at my number that I am looking for. So what you guys think?
The house is a single Family house in South Amboy, NJ....So they get to advertise on Craigslist, Home News, and the Star Ledger for me.
Quote:
Originally Posted by JoeandFamily
Well I understand....There are more to this. Just alot to type.....
When they market my house......Lets just use these number for example.....
Market my house for $300K <----Not the real number for my house.
I sign a contract I will recieve $275k at closing....So They have $25k for them as comission, but they use that for the downpayment assistance for the buyer.
With the numbers you posted, what is the real FMV of your house? How do you know the house will appraise for what they will market your house for?
What will you do when the contract expires (btw, how long is the contract for?) how much has your house depreciated in value due to this market?
I wouldn't waste time on gimmicks in this market unless they were going to actually purchase your house for what it's appraised at.
Well I understand....There are more to this. Just alot to type.....
When they market my house......Lets just use these number for example.....
Market my house for $300K <----Not the real number for my house.
I sign a contract I will recieve $275k at closing....So They have $25k for them as comission, but they use that for the downpayment assistance for the buyer.
Definitely agree with CuCullin about the fishiness.
Commission makes sense, but what is the difference between that and using a realtor?
And if the "downpayment assistance" goes to the buyer, how does the "investor" make a profit?
Or is this a way for a mortgage broker to act as a realtor without having to take the test and pay dues?
What is in it for him, and what is in it for you and what protection do you have if it all goes belly up?
With the numbers you posted, what is the real FMV of your house? How do you know the house will appraise for what they will market your house for?
What will you do when the contract expires (btw, how long is the contract for?) how much has your house depreciated in value due to this market?
I wouldn't waste time on gimmicks in this market unless they were going to actually purchase your house for what it's appraised at.
Well I am not sure if I can post all the info, do to Mods stating that I am marketing my house....But there was a CMA done on the house. Now mind you, I have done real estate as well, BUt not active at the moment.
The price it will sell is what the house would be approx appraised for...The investor sometimes will make more money on different properties. The contract is for 2 weeks. I have done my HW on these companies, and came across a 50/50 pos/neg feedbacks. the neg feedback that I have read was that the houses didnt sell. I as well checked the BBB on them and they came up clean.
If nothing sells, we both walk away with no penalties or anything owed.
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