Author Topic: Is this offer legit?  (Read 3804 times)

spoonman

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Is this offer legit?
« on: May 15, 2013, 11:15:45 PM »
I got a letter in the mail today from a couple that is interested in buying my place.  Before I get into the details I just wanted to know if anyone here has ever gotten an unsolicited offer in the mail like this. 

They represent themselves as a couple with an investment company operating locally here.  But, I couldnít find them on BBB and they donít have a website.  It was a very thorough package with different payment options I get to choose for how to buy the place.  They attached a check to their letter, which seems like a marketing gimmick.  They did their research because their offer was based on recent comps.  Oh, and I have 30 days to respond.

Any thoughts?

Hamster

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Re: Is this offer legit?
« Reply #1 on: May 15, 2013, 11:20:26 PM »
You could try typing some of the text of their letter into a search engine (in quotes) and see if you get any hits with people who have also been solicited with the same form letter. May give some insights.

Nords

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Re: Is this offer legit?
« Reply #2 on: May 16, 2013, 12:05:15 AM »
Any thoughts?
"We buy houses for cash!!"

The unsolicited offer is a common strategy in get-rich-from-real-estate books.  Maybe they're trying to flip, or maybe they're getting private equity funds to buy rental properties.  I can't see why you'd care whether they're a legitimate business.  Your title and their money have to clear escrow, so if you're interested then you could have them deposit $1000-$5000 (non-refundable) earnest money along with their offer. 

Of course you'd have to feel like selling, and then you'd either have to rent back or find another home.

nktokyo

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Re: Is this offer legit?
« Reply #3 on: May 16, 2013, 12:19:50 AM »
What Nords said.

They probably see you place as an opportunity to make some money by buying low and on-selling quickly.

In that case, why would you sell to them instead of the market?

Another Reader

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Re: Is this offer legit?
« Reply #4 on: May 16, 2013, 07:37:36 AM »
What Nords said.

It's a better twist on the sales pitch than average, but I'll bet those comps aren't recent or are from an inferior area.

I get between 5 and 10 of these a week because I have a lot of rentals and my name and address appear on out of state owners lists.  The most common is the "handwritten" note in red ink on yellow lined paper.  If one looks a little different, I open it to see what the latest "guru secret" to get owners to respond is.  Otherwise they go from the maibox to the recycling bin.

spoonman

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Re: Is this offer legit?
« Reply #5 on: May 16, 2013, 08:05:14 AM »
Thanks for all the responses!

They made an effort in their letter to sound "personnal" and sort of mom-and-pop.  Based on what you guys are telling me, this is not uncommon but it's no reason to believe they are malevolent.  It's a question of whether or not we feel like selling...

Although their comps are actually accurate, their main offer is below the amount that we paid for the house.  Our plan was to wait another 2 years or so for prices to go up a little more.

They had a secondary offer where they would pay us 10% higher than what we got the place for, but it would be with monthly payments for 60 months (followed by a lump payment in the fifth year).   

Basically, they think we might be "distressed" sellers hoping for a way to get out of the house now instead of later.

Spork

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Re: Is this offer legit?
« Reply #6 on: May 16, 2013, 08:22:00 AM »

Was there a "why" to them buying your place?  Or just "investment."  I've sent one or two of those myself -- though not with a gimmicky check.  In my case it was just nice (or neighboring) land that I wanted for my own selfish reasons. 

spoonman

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Re: Is this offer legit?
« Reply #7 on: May 16, 2013, 06:54:13 PM »
@Spork: in the opening paragraph to their letter they say "We are writing you to see if you are considering selling the property at ____.  We live nearby in your city and have recently purchased several properties in different parts of the state.  Currently, we are working on a project in your area and learned about your property."

I interpret that as just wanting to invest.