Beware of this company
Beware of this company. They do NOT keep their word. This company decided to back out of our contract just 3 weeks before closing. Just imagine spending 5 frantic weeks searching for a new home, packing, and preparing to move and they call you and cancel like it's no big deal. Just backed out because they were in over their heads. When you voice your frustration, these supposed Army Veterans will call you a terrorist. (I’m a disabled Veteran) They are really smooth talkers but didn't back up their offer. I really felt like the cancellation phone call was just another pitch, or more likely they were trying to renegotiate for a lower price, close to closing, so they assume they have you over a barrel or something. It was just too smooth and sounded like they do this all the time.
Well, here’s the angle:
The “investor” buyers often purchase using an LLC that has no assets. There’s either no earnest money, or very little earnest money, so the stakes are low. The wholesalers, they try to find a buyer to assign the contract (because the wholesaler doesn’t actually have any money…their business model isn’t built around buying property and instead is built around assigning it). If a buyer can’t be found, they breach the contract knowing that the LLC is judgment proof. Therefore, sellers can pursue them all they want and get a judgment, but then it’s uncollectible. Sellers spend far more time and money chasing the buyer than they can ever recover.
It's the unfortunate reality of shady wholesalers. Sellers should increase the earnest money (which will gauge the buyer’s actual intent and ability to close) and ask for proof of funds showing they have the ability to pay (with the proof of funds giving the seller the authorization to confirm the funds. (Because too many of the proof of funds letters are fraudulent).
Save yourself a heart attack and deal with a reputable home buying company, if there are any. If you enjoy wasting your time and money, feeling slimy, and being sick to your stomach, this is the company for you!