Frequently Asked Questions
Maybe you have a few questions. That’s okay; most people do. So here’s a quick collection of some of the questions people ask us… along with our answers. If you still have a question, don’t hesitate to contact us (or give us a call) and we’ll be happy to answer it for you. 864-909-6991
SELL YOUR HOUSE
Q: Do you pay fair prices for properties?
A: Many of the houses we purchase are below market value (we do this so we can resell it at a profit to another home owner). We are looking to get a fair discount on a property. However, in our experience, many sellers aren’t necessarily expecting a large “windfall” on the property but rather appreciate that we can offer cash, we close very quickly (no waiting for financing), and no time or effort or expense is required on your part to fix up the property or pay agent fees. If that’s what you’re looking for and you see the value in getting your house sold fast then let’s see if we can come to a fair win-win price. (Besides, our no-obligation pricing commitment means that you do not have to move forward with the offer we give… but it’s good to know what we’re offering!)
Q: How do you determine the price to offer on my house?
A: We’re an open book and our process is very straightforward. We look at the location of the property, what repairs are needed, the current condition of the property, and values of comparable houses sold in the area recently. We take many pieces of information into consideration and come up with a fair price that works for us and works for you too.
Q: Are there any fees or commissions to work with you?
A: This is what makes us stand out from the traditional method of selling your house: There are NO fees or commissions when you sell your house us. We’ll make you an offer, and if it’s a fit then we’ll buy your house (and we’ll often pay for the closing costs too!). No hassle. No fees. We make our money after we pay for repairs on the house (if any) and sell it for a profit (we’re taking all of the risk here on whether we can sell it for a profit or not, once we buy the house from you… the responsibility is ours and you walk away without the burden of the property and it’s payments… and often with cash in your hand).
Q: How are you different from a real estate agent?
A: Real estate agents list properties and hope that someone will buy them. The agent shows the properties to prospective buyers if there are any (the average time to sell a property in many markets right now is 6-12 months) and then take a percentage of the sale price if they find a buyer. Oftentimes, the agent’s commission is 3-6% of the sale price of your house (so if it’s a $100,000 house, you’ll pay between $3,000 – $6,000 in commissions to an agent). Agents provide a great service for those that can wait longer to sell and who don’t mind giving up some of that sale price to pay for the commissions. But that’s where we’re different: We’re home buyers. Our company actually buys houses. We don’t list houses. Since we’re actually the one buying the house from you, and we pay with all cash… we can make a decision to buy your house within a couple days (sometimes the same day). Again, we make our living by taking the risk to buy the house with our own cash, repair the house, and market it ourselves to find a buyer (which is the hard part in this market).
Q: Is there any obligation when I submit my info?
A: There is absolutely zero obligation for you. Once you tell us a bit about your property, we’ll take a look at things, maybe set up a call with you to find out a bit more, and make you an all-cash offer that’s fair for you and fair for us. From there, it’s 100% your decision on whether or not you’d like to sell your house to us and we won’t hassle you. It’s 100% your decision and we’ll let you decide what’s right for you.
OWNER FINANCING A HOME
Q: Is it required that I join a credit repair program to buy a house?
A: There is absolutely zero obligation for you to join a credit restoration program. However, if you have problem credit the best course of action is to join a credit repair program to get the problems fixed as soon as possible. Being enrolled in a credit repair program looks fantastic to a house seller because they see you are serious about taking action to qualify for a traditional bank loan thereby closing out their “Owner Finance” loan and thus cashing them out. Some house sellers do require you to join a credit repair program if you have bad credit. It is the choice of the seller. Good credit is an asset worth having as it qualifies you for better interest rates as well. Generally speaking, the higher your credit score the lower your interest rate to borrow money. Many people who visit our site have good credit already but are self employed and do not have the documentation lenders require to get a traditional mortgage. The choice to join a credit repair program is yours but getting, and keeping, good credit is a resource always worth having because none of us can be sure what the future holds.
Q: How much money must I put down to Owner Finance a house?
A: Ultimately the amount required to put down on a house is whatever the seller will take. Most seller’s will not take less than $10,000 down plus the first months payment and/or a paid insurance policy. Ideally its good to have at least $15,000 in liquid (cash) funds when owner financing a home. It’s important to understand that the seller is risking a lot when they put someone into a home. Just the cost of replacing carpet could cost $3,000 or maybe more. Therefore, from the seller’s perspective, your “good credit” is your down payment amount and your willingness to improve your situation that is stopping you from getting traditional bank financing. That could be a low credit score, no tax returns, unpaid debts, etc.
Q: Can I use 401K funds to purchase an owner financed home?
A: While every plan varies, most tax deferred or retirement accounts include a provision for releasing funds for the purchase of a primary residence. Our experience has been that Owner Financed homes do qualify but it is best to check with you plan administrator first before assuming this is an option for you.
Q: Do you represent me in the purchase of the home?
A: We often do represent you in the purchase of an owner financed home but we are NOT licensed lenders, attorneys, tax accountants, contractors, home inspectors, etc. We will always recommend that you consult licensed experts before making any legally binding agreement.
Q: Do you use an attorney to close the sale?
A: Yes. All real estate transactions must be closed with a South Carolina licensed attorney in good standing. The attorney will ensure the agreement meets all SC law, perform a title search to make sure there are no liens against the property you are buying, and record the sale at the county court house. It is a real, real estate transaction and follows all of the laws required by the state of South Carolina.
Q: Who pays the closing attorney fees?
A: The buyer pays the buyer closing attorney fees and the seller pays the seller attorney fees. The amount of the fees vary with the closing attorney and the price of the home.