What do you you think about companies fronting money for cash deals on houses?

Asked by JLeslie (65418

) December 20th, 2021 from iPhone

Here’s the article about it. https://apple.news/Aog4yfEMuS2qVDq6KOeG1JA

Some housing markets in the US are extremely competitive and to buy a house your offer needs to be very attractive, and mostly that means writing up the offer as a cash offer.

There are companies that are offering to buy the house for you, fronting the cash.

It seems like a possible house of cards. What do you think?

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2 Answers

You want to have a damn good lawyer look at the agreement before you sign.

And of course if you could afford a damn good lawyer then you wouldn’t need the money fronted.

This sounds to me like one of those scams where they know that 95% of people will default or be unable to pay and this lender will end up getting the house for practically nothing. This reeks of dishonesty.

It sort of reminds me of those companies that make bridge loans to small struggling companies. The lender knows that a lot of them will fail, so the lender ends up owning (and then selling) the business at a profit.

elbanditoroso (33158

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