- How can you sell properties so cheap?
Our business model is to buy raw, vacant land for 10-30% of market value and resell it at wholesale prices - down to 50% of market value. We do this by finding owners that for one or several reasons do not want their property anymore, and we offer them a fast and easy cash transaction if they choose to sell it to us for a discount. We use few or no middle men that take large commissions, and the savings are passed on to our buyers.
Also, we prefer to do quick deals and get repeat customers knocking on our door, rather than trying to squeeze every penny out of a deal.
- What is "Title insurance"?
Title insurance can be bought from a title company if you want to be 100% sure that there is a clear chain of title to the property. When you are to buy a house and get a mortgage, the bank almost always requires you to have title insurance so that there can be no question about the ownership of the property. In reality it is extremely rare that title insurance will ever be needed (even more so than with many other types of insurance). That is why we never buy it ourselves for cheaper land parcels.
- What is "Escrow"?
Escrow means that the buyer's money is secured by an independent and licensed third party in order to protect both the buyer and seller in a transaction. The fee for using an escrow service varies by state, but typically it costs at least $500. For low priced properties we prefer to use an online escrow service called Safefunds, which is much cheaper.
- What is "Seller/Owner financing"?
This means that you make a down payment on the property and then pay a small monthly fee until the price is paid in full. You will receive a Land Contract (sometimes called a Contract for Deed) and can then use the property from day one. When all monthly payments are made we will sign the deed in your name and have it recorded at the county. NO credit checks needed!
- What is "Wholesaling"?
When we wholesale a property we do not actually own it ourselves, but have a signed purchase agreement with the current owner and we are using our investment network to find a cash buyer. We then coordinate the transaction between buyer and seller, together with a closing agent.
- What is the difference between a Special Warranty Deed and a General Warranty Deed?
Both of these deed types give the following guarantees:
- That the seller owns the title
- That the seller is legally allowed to sell the property
- That the property has not already been sold
- That the property is free of debt or other claims (aside any mentioned in the deed)
- That the seller is responsible for any problems/faults with the property
The difference is that a Special Warranty Deed only covers the period of time for which the seller owned the property, where a General Warranty Deed covers the property's entire history. [Source]
- Can you hold a property for me?
Yes! You can reserve a property by paying a holding fee of $100 that counts towards the full payment. Read more under Step 1 in How it Works.