We Buy Houses in Los Angeles Companies – Red Flags to Watch For

If you’ve been driving around in Los Angeles, chances are you’ve seen some billboards advertising companies that buy houses. In real estate we call them ‘bandit signs’.

Often times they say things like “We Buy Los Angeles Houses!” or “Cash For Your House”.

Are These “We Buy Houses in Los Angeles Companies” Credible?

How do I know if the local house buying companies out there are honest and credible?

There is a huge difference between the respectable home buyers and the shady ones. First is, are they licensed? Most serious investors have their real estate license.

This also means they have a regulatory board that they report to and a place you can file complaints!

Unfortunately there are a ton of get rich quick videos on youtube and many involve buying homes or doing something called wholesaling.

Many wholesalers don’t know what they are doing, don’t actually purchase properties and just waste your time.

There are also people who are really great, ethical folks who improve their neighborhoods one property at a time.

Yes, they are out there.

We’ll help you avoid these “shady house buyers” so you can work with honest, ethical, and reputable local companies who can buy your house for a fair price and close on your schedule.

But let’s not focus on the negative – at least not yet.

First, let’s cover exactly what the best house-flippers are doing.

What Reputable Los Angeles House Buyers Are Doing

  • Helping people improve their lives by accessing the money ASAP. People often need the cash in their house to cover unexpected expenses, or to relocate to be close to a relative. We can make that happen in just a few days, and we deliver peace of mind.
  • Helping sellers get rid of an unwanted property without the hassle of having to list it with a broker and wait months and month for a sale.
  • Creating local jobs. We hire plumbers, contractors, electricians, brokers, title reps, loan officers, administrators and many other folks along the way. The average real estate transaction involves 86 people from start to finish. Our investments help create real jobs for people around Los Angeles CA.
  • Buying Local We spend a huge amount of money on each property. For many homes we need to buy new flooring, paint, roofing tiles and other construction materials. We buy local products and do whatever we can to support the local neighborhood. Some of our favorites are the fruit trucks, we love fresh food!
  • Increasing the value of Los Angeles neighborhoods. When we update a house, we are increasing the value of the entire community. We often repair abandoned and neglected houses, turning them into beautiful homes for families. This helps improve Los Angeles.
  • More taxes. When a home is sold, the tax rate is re-assessed and we pay a ton in taxes! Those taxes go to pay for our schools, fire, police, libraries, streets and other valuable pieces of infrastructure.

Pretty cool stuff, right?

Lots of people think of house-flipping as a get-rich-quick scheme. That’s fueled by silly “reality” shows that amp up the drama because the reality of what we do on a daily basis is actually pretty boring.

We wish it was a get rich scheme, we would be retired already! Instead it takes a huge amount of work and coordination among many moving parts.

Most of our work is coordinating with lots of people to make sure things are happening on time. We have to keep track of lots of moving parts.

So let’s get back to how you can use this information to find out if someone is a credible investor, and not just pulling a house buying scam.

How To Ensure You’re Working With A Reputable Local House Buyer

When you talk with a local house buyer to potentially buy your house… ask them some of the questions below to ensure they’re reputable, knowledgeable, and honest.

Ask questions like:

  • How much of a deposit to you put down?
  • Are you the end buyer or will you re-assign this to someone?
  • Do you have a partner you need to discuss this with?
  • Can you tell me more about your services?
  • How can I know that you’ll close on my house when you say you will?

Finally, be wary of these red flags

  • Signing the Deed upfront – If they try to get you to sign over the deed of the house right away, this is a major flag. Title and escrow companies must be involved and this process takes time. Plus a notary needs to sign the deed.
  • Short contract – Does it look like an attorney wrote the contract? The standard form in California is over 17 pages long with disclosures! A one or two page form not might be legally binding.
  • No or low deposit – Are they offering a $1000 deposit in 5 days? That’s a sure sign they are trying to find a REAL buyer for your home and they are not purchasing the property.
  • Buyer includes “Or Assignee” – They are not purchasing the property and will re-sell it to a real buyer at a higher price.
  • Pressuring you into a fast closing – Selling a home can take time. If they are trying to pressure you, they are using high pressure sales tactics to try and land a ‘deal’. This is your home. You should sell it on your time schedule.

Most scammers are looking for a quick score, and not an in-depth interview.

Chances are good that they’ll find excuses to get off the phone and move on to someone who doesn’t ask too many questions.

True investors who run honest and ethical Los Angeles house buying services, however, are building long-term businesses based on relationships and community development.

So when you’re looking at one of the “we buy houses in Los Angeles companies“… never be afraid to ask questions!

Give us a call anytime at 424-341-0837 or
fill out the form on this website today! >>

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