In this 5-part video series, Express Homebuyers’ CEO Brad Chandler discusses the "We Buy Houses" scams out there and how to protect yourself from nasty house buying scams
I figured it was time for an industry insider to pull back the covers on some of the shady practices that unfortunately occur in the house buying industry. These dishonest practices and “we buy houses” scams are one of the reasons I started Express Homebuyers back in 2003. I saw a real need in the industry for investors to operate in an ethical, honorable and truthful manner. Taking advantage of people is NOT RIGHT and is something I DO NOT TOLERATE.
First let’s talk about some of the most widespread tricks.
Well, wait. Let’s make sure we all understand something first. All investors, including Express Homebuyers are in the business to make a profit. That’s the reality of running a business – if you don’t make any money, you close up shop. So we all buy homes for a price we feel allows us to put in the necessary repair dollars and then resell the property for a profit.
Here’s where the differences start. Many house buying companies and property investors hide behind those “We Buy Houses” and “I Buy Houses” signs and websites that don’t tell you who they are, if they have an office address and if they have a legally operating and licensed company. Many of the We Buy Houses signs you see on utility poles have only a phone number. No one’s personal name, business name or business address is on there. And many of the 800 numbers go through Google voice or other services that make it untraceable.
What is this for?
Why do property investors do this? They do it for 2 reasons. The first is because is in most areas of the country those signs – which are also known as bandit signs – are illegal. The offender can be penalized with big fines. The second reason is that if the investor does something illegal during the course of your transaction with him, it will be virtually impossible to track him down.
At Express Homebuyers, we’ve run TV ads for years with my face and name on the commercial. Why? Because we operate honestly and ethically and have nothing to hide. Want to come visit our office and meet our team? You are welcome here any time! That’s an offer that would be difficult for most other home buyers to make, as most of them don’t have offices. They operate as a one-man show working out of a home or apartment.