Investor · Boston, MA · Member since 2016 · 73 posts · 18 votes
I'm selling a house I own in Florida (tenant occupied). It's a great property, but the sale is off MLS, and needs to be an investors only, cash deal, since it's a settlement home.
Already got one offer from cashgeeks. Anyone work with them? I'm concerned that they didn't acknowledge that they are aware of the settlement on the offer, and if I accept the offer I lock the house for other offers while they inspect, and then they come back with a much lower price. The offer they gave is already well below market value.
Investor · Tampa, FL · Member since 2011 · 2k+ posts · 3k+ votes
5y
Why would you put the house under contract with a wholesaler? Why not sell it on the MLS and disclose the settlement. You will always get more on the open market then you will from a wholesaler. They make money off uneducated sellers, not BP members.
I'm selling a house I own in Florida (tenant occupied). It's a great property, but the sale is off MLS, and needs to be an investors only, cash deal, since it's a settlement home.
Already got one offer from cashgeeks. Anyone work with them? I'm concerned that they didn't acknowledge that they are aware of the settlement on the offer, and if I accept the offer I lock the house for other offers while they inspect, and then they come back with a much lower price. The offer they gave is already well below market value.
Investor · Boston, MA · Member since 2016 · 73 posts · 18 votes
5y
@Account Closed its a home where previous owners reported as having settlement issues/sink hole, got an engineering company to write up a report, submitted it to the insurance company, and pocketed the money- never correcting any supposed issues. This was a play that lots of owners ran a couple decades ago.
Multiple inspections came up as clean- totally normal settlement. No issues with the house at all. However, due to the "unmitigated settlement" the house is now blemished, meaning buyer/occupiers will have a hard time getting insurance/mortgages. It's possible, but more difficult.
For investors, we get to buy the house for less than market value, and charge rents that are at normal market value. So you will find most often settlement homes are owned by investors.
@Account Closed its a home where previous owners reported as having settlement issues/sink hole, got an engineering company to write up a report, submitted it to the insurance company, and pocketed the money- never correcting any supposed issues. This was a play that lots of owners ran a couple decades ago.
Multiple inspections came up as clean- totally normal settlement. No issues with the house at all. However, due to the "unmitigated settlement" the house is now blemished, meaning buyer/occupiers will have a hard time getting insurance/mortgages. It's possible, but more difficult.
For investors, we get to buy the house for less than market value, and charge rents that are at normal market value. So you will find most often settlement homes are owned by investors.
I had no idea that kind of thing happened, where people were paid by the insurance company but didn't do the fix. I've had the experience where the insurance company paid the contractors directly. Thanks for the "heads up".
Investor · Boston, MA · Member since 2016 · 73 posts · 18 votes
5y
@Mike Hern funny enough it actually wouldn’t matter if they paid to fix or not. Mitigated or not the house will always sell under market value because of the blemish.
Investor · Tampa, FL · Member since 2011 · 2k+ posts · 3k+ votes
5y
Why would you put the house under contract with a wholesaler? Why not sell it on the MLS and disclose the settlement. You will always get more on the open market then you will from a wholesaler. They make money off uneducated sellers, not BP members.
Why would you put the house under contract with a wholesaler? Why not sell it on the MLS and disclose the settlement. You will always get more on the open market then you will from a wholesaler. They make money off uneducated sellers, not BP members.
Since the house doesn't make sense for owner/occupier due to settlement, and currently rented, the realtor suggested on going direct to investors. Will see what offers they come back with after inspection and decide then. Tenant will be out by end of august so might make sense to put on MLS after.
Investor · Tampa, FL · Member since 2011 · 2k+ posts · 3k+ votes
5y
Yikes no offense to the realtor, but that's horrible advice. If the realtor thinks only owner occupied homes are bought and sold on the MLS, you might want to think about getting a new one.