There are a bunch of investing companies out there that buy homes with cash. These companies really do “buy ugly houses”. Everyone has seen the “We Buy Ugly Houses” and “Cash for Your Shabby Shack” ads and signs. There are some good companies and some bad ones just like any industry. Some of these companies are owned or ran by real estate brokers. You should most likely use with those. A licensed real estate broker needs to conduct themselves on the up and up. They would never risk their real estate licensed to purchase a fix and flip or investment property.
They way these instant offer or Cash for Shabby Shacks or We Buy Ugly Houses works is they find homes that need repair. These companies (most anyways) buy homes in any condition and they fix them up then resell them for profit.
This is a great option for folks that don’t have the money to fix up their home but they still want to sell. Most of the time a real estate investor that buys run down homes for cash will make you a a cash offer for your home with having the ability to terminate if the home is in really, really bad shape but they should never ask you to repair anything, They should understand this is why they are purchasing the home. To invest time and money into the property and gain profit. So keep in mind when these investors buy a home they need to have some margin in the deal to make some profit.
Some of these real estate investors will even work with the seller. At the point the seller needs to sell their home that is in disrepair they should understand they need to sell for less than just the amount it would cost to repair. They need to under there needs to be a little meat left on the bone for the investor to make some money off the risk they took in the home. Let’s be honest every investment like that has a certain level of risk.