The Ugly Truth Behind “We Buy Ugly Houses”

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The Ugly Truth Behind “We Buy Ugly Houses”

Bill SchrimpfBusiness Member
Real Estate Agent · Reno, NV · Member since 2014 · 353 posts · 189 votes

Did anyone see the ProPublica investigation and articles about HomeVestors, the entity behind the "We Buy Ugly Houses" franchise?   Here is the link.

Pretty damning investigation, and the Companies' response is that ProPublica discovered a few bad apples (franchisees).  

Has anyone here on BP done business with this outfit?  Curious to know what your experience was.

[email protected]775-741-2326
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  • Chris SeveneyBusiness Member
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    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    3y

    @Bill Schrimpf

    The article was meant to go after them, the response which a lot of times attorneys will tell you not to reply was pretty alarming if in fact the franchisees that allegedly were taking advantage of elderly were winning corporate awards.

    This is just not them doing this there are wholesalers everywhere you pray in elderly and people in preforeclosure which in some states is predatory.

    Just a matter of time before it gets regulated because of the bad apples

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  • Bill SchrimpfBusiness Member
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    Real Estate Agent · Reno, NV · Member since 2014 · 353 posts · 189 votes
    3y

    I don't buy the bad apple argument from HomeVestors.  If you know, or should know, there are bad apples, but don't do anything about it, you are a bad apple too.

    Wholesaling in general has a dubious reputation.  Some are good, but it's so easy for bad actors to participate.

    When someone sells a property for 2/3 of it's value, that's a cautionary flag, even in the best of situations.  Sometimes the seller is aware and has higher motivations to leave that kind of cash on the table, and that is OK.  

    Unfortunately, sometimes the seller is unaware and is being taken advantage of.  It happens in every business, not just real estate.  In real estate and in the case of the ProPublica HomeVestors investigation, people were screwed out of their homes and largest asset.  That is not OK.

    One of the tactics used was putting a cloud on title, even though the property had not been transferred yet.  This made it nearly impossible or very complicated for adult children or other care takers to unwind an unscrupulous transaction that took advantage of seniors with cognitive declines.  That is dirty, and happened often enough that corporate told franchisees to stop that practice.  

    There are plenty of ways to make good, honest money in real estate.  

    [email protected]775-741-2326
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