I have sold over 160 properties in the last 3 ½ years.

I am a real estate investor, not an agent and I don’t personally know any agents who can make that claim. Selling a home yourself is, in my opinion, the best way to sell. However, there are a few things of which you need to be aware.

It’s important to know that a good number of the people who will want to look at your home could be real estate investors who are not buying your house for the purpose of living in it themselves.

We investors like to buy most of our houses through "For-Sale-by-Owners" because dealing with the owner allows us to be as creative, as the deal requires. We can offer our sellers the terms and conditions needed that will help them get their houses sold while securing us an investment property.

Most of the investors you meet will be honest, legitimate businesspeople, so don’t shy away from working with them. Dealing with an investor could be the best thing you ever do, but just as in any other business, there are some investors who don’t work ethically.

The real estate board does not regulate private sales and therefore you can be targeted by crooks and shysters.

There are, unfortunately, a few disreputable companies out there that teach real estate investors how to buy property by crossing into the grey areas of law & ethics. I know, because I have been a victim of some of these companies and individuals. When I first started in this business, I ran into several shady characters who liked to prey on new investors and unsuspecting sellers.

I’d like to give you a little advice that might help you to be able to distinguish the honest from the dishonest.

First off, ask lots of questions. Find out how long they have been in business and if they have anyone who can offer a referral. A good referral would be another seller from whom the investor has bought a house. Ask how many houses they have bought and whether or not they have ever been unable to close on a deal after having removed their conditions.

Be sure to get a deposit. If no consideration changes hands, there is no deal. You will probably find that real estate investors don’t usually offer a large deposit because, if they are buying a quantity of houses, they would quickly run out of money. Since I have told you to ask how many properties they have bought, you will have an idea of how many properties they buy at a time and how much they should be able to put down on a deposit. I personally only put about $500.00 down as an initial deposit but, once I have removed conditions, I have no problem putting down an addition deposit to secure the deal. If you look at the purchase and sale contract you will see that there is a line for both of those.

If an investor balks at giving you an additional deposit, you should ask him/her, and yourself, "Why?" A serious buyer shouldn’t have a problem with this.

Make sure to get everything in writing. Don’t just take someone’s word for anything. If your contract doesn’t offer enough room to write out all the conditions and terms of the arrangement, then you can always add an addendum to the contract that will allow you to do so. Most real estate investors will have a copy of one of these. If not, your lawyer will be able to provide you with one.

When I sell a house, I always ask the buyer for proof of funds before I allow them to remove conditions. This is something that you need to put in the seller’s conditions section of the contract. If the buyer can’t prove they have the ability to buy your house, then they have not met your conditions and you know not to sell to them. Be careful not to compromise on this.

Always follow your gut instincts and never sign anything you don’t understand.

The most valuable thing I can tell you is to run everything past your lawyer. It is your lawyer’s job to protect you. You can also ask for the name of the buyer’s lawyer and give him/her a call to verify that the buyer is reliable and honest in their dealings.

Candice Graf teaches a local monthly groupmentoring program on how to buy and sell homes profitably.

For more information visit: www.HomerunInvestments.com
or e-mail: info@HomerunInvestments.com

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