Posted by Steve-Atl on June 12, 2000 at 11:05:10:
Your questions in your post are good. I’d ask them just like that.
It sounds like he is a hybrid wholesaler. He finds the deals, then finds investors to buy them. In return for the down payment and closing, he probably wants a partnership and a portion of the profit. Just speculating, but if that’s the case, it does not seem to be an unreasonable approach assuming the arrangement works for both of you.
Good Luck!
Skeptical Investor - Posted by msbPA
Posted by msbPA on June 12, 2000 at 09:45:19:
I answered an ad in the newspaper geared towards investors:
It read like this ATTN: “Investors, buy property with no money down and pay no closing costs with approved credit.” I supplied the company with information to do a credit check. They were satisfied with my credit and income. The person in charge told me that he buys houses and sells them to investors like myself paying all down payment and closing costs. He calls himself helping out struggling investors who cannot come up with the down payment and closing costs to buy investment properties. Is this legal(agreeing to pay all down payment and closing costs)??? He supposedly has lenders lined up who will finance me based on my approved credit. He seeks out fsbo and makes deals with them and that is how he able to come up with a list of properties for sale. I am a little skeptical about this. I want to know why is he so willing to pay down payments and closing costs for investors. What could be in it for him? Is he making money on the back end or what? He also runs another ad geared towards people who want to sell there homes for all cash. What should be my concerns with this too good to be true venture. What questions should I ask.
Re: Skeptical Investor - Posted by dew
Posted by dew on June 14, 2000 at 21:50:10:
Or maybe worse than Steve thinks. Maybe he’s got an appraiser who will be REAL aggressive in value, and you’ll be paying more than FMV.
Ask and let us know please. dew