Most "we buy houses" companies are legitimate, but the industry has no license requirement, so a minority of bad actors uses the same signs and websites as honest buyers. Verify any cash buyer with 9 checks: registered business, real BBB profile, physical address, proof of funds, written offer, clean contract language, no upfront fees, a licensed closer, and confirmation of who actually signs.
This checklist is maintained by Home Pros (Balint Holdings, LLC), a veteran-owned cash home buyer, and it is written so you can use it on any company, including us. Every red flag and recommendation below comes from the Federal Trade Commission, the Consumer Financial Protection Bureau, or the Better Business Bureau, current as of September 6, 2026.
Are most "we buy houses" companies legit?
Yes, most are. The cash-buyer and wholesale-investor industry is built around local operators who close on the terms they advertise, and the overwhelming majority of the signs, postcards, and websites you see belong to real businesses. What makes this market different from a traditional agent-represented sale is that nobody has to pass a licensing exam, carry insurance, or answer to a state board to put up a "we buy houses" sign, because buying a house for your own account is generally not a licensed activity the way representing a buyer or seller is.
That low barrier to entry is also why a real, if small, minority of bad actors operates in the same space: equity-skimming schemes that target owners in financial distress, foreclosure "rescue" offers that take a deed and disappear, and simple no-shows who tie up a house under contract and never close. None of that means you should avoid cash buyers. It means you verify one before you sign, the same way you would check a contractor's license or a used car's title history.
The 9-point verification checklist
Run any cash buyer, including Home Pros, through these 9 checks before you sign a purchase agreement or give anyone access to your house.
| # | Check | What to do | Red flag |
|---|---|---|---|
| 1 | Registered business | Search the company's exact legal name in the Secretary of State business database for its home state. | No active entity under any legal name they give you. |
| 2 | Real BBB profile | Look the company up directly on BBB.org, not through a link they sent you. | No profile, or a profile under a different name than the one on your contract. |
| 3 | Physical address and working phone | Confirm the office address is real and the phone number is answered by a person tied to the business. | A PO box only, or a number that goes to voicemail with no company name. |
| 4 | Proof of funds | Ask for a bank statement, line of credit letter, or proof of funds letter. | Stalling, excuses, or no documentation within about 24 hours. |
| 5 | Written offer | Get the price, closing date, and every promise in a signed document. | "Trust me" verbal promises with nothing in writing. |
| 6 | Clean contract language | Read for "and/or assigns," long inspection periods, or a right to cancel days after signing. | Language that lets the buyer flip or exit the contract on their terms alone. |
| 7 | No upfront fees | Confirm money flows from the buyer to you at closing, never the reverse. | Any request for a processing, appraisal, or "good faith" fee before closing. |
| 8 | Licensed closer | Insist on closing through a title company or real estate attorney, not a private wire to the buyer. | Pressure to skip the closing table or wire funds directly to an individual. |
| 9 | Named signer | Confirm exactly who signs the deed and who is legally on the hook to close. | Vague answers about who the "real" buyer is. |
Should a cash buyer ever ask me for money before closing?
No. In a legitimate transaction, money moves from the buyer to the seller at the closing table, not the other way around. The FTC's guidance on mortgage relief offers states plainly that it is illegal for a company to charge you upfront for promises to help you get relief on paying your mortgage, and the same principle carries over to any cash-for-houses pitch: a real buyer does not need your money to buy your house. The Consumer Financial Protection Bureau's foreclosure relief scam guidance adds that scammers frequently push homeowners toward wire transfers, cashier's checks, or payment apps specifically because those are hard to reverse once sent.
If anyone asks you to pay an "appraisal fee," a "processing fee," or a deposit to "hold" your own house before they buy it, that is the single clearest signal to stop and verify the company using the rest of this checklist before going any further.
How do I know a cash offer is actually backed by cash?
Ask for proof. A legitimate cash buyer should be able to produce a recent bank statement, a line of credit letter, or a dedicated proof of funds letter from their financial institution, and industry practice puts a reasonable turnaround for that document at about 24 hours from your request. A buyer who changes the subject, promises to "send it later," or never follows up is behaving exactly like the no-proof-of-funds pattern that consumer advocates flag as one of the most common signs a cash offer is not real.
This step matters even when everything else about a company checks out, because a buyer can be a real, registered business and still lack the capital to close on your specific house, especially if they plan to resell your contract to another investor before closing (a practice sometimes disclosed with "and/or assigns" language in the purchase agreement).
What contract language should make me stop and ask questions?
Three patterns come up repeatedly in complaints to consumer-protection agencies. First, "and/or assigns" after the buyer's name lets that buyer sell your contract to someone else before closing, which is not automatically dishonest but means the person who actually closes on your house may not be the one who negotiated with you. Second, a long due-diligence or inspection period, sometimes 10 days or more after signing, can function as a free option: the buyer locks up your house and walks away with no penalty if a better deal does not come through. Third, watch for a right to lower the offer shortly before closing, often blamed on a surprise "inspection issue" discovered only after you have turned down other options.
None of these clauses is automatically illegal, and legitimate investors sometimes use assignable contracts as a normal part of doing business. The protection is not avoiding every unusual clause; it is reading the whole contract before you sign it, asking the buyer to explain any clause you do not understand in plain language, and getting that explanation in writing.
Why does it matter who handles the closing?
A licensed title company or real estate closing attorney is your best protection in the entire transaction, because that closing agent, not the buyer, verifies the buyer's funds are real, confirms clear title, and holds money in escrow until the deed is properly recorded. The BBB's guidance on quick-cash home sales specifically recommends completing every transaction through a closing or escrow agent and refusing any pressure to handle payments "off the books," outside that process.
If a buyer suggests skipping a formal closing, wiring you funds directly, or using a closing agent you have never heard of and cannot independently verify, treat that as a reason to slow down, not speed up.
How can I verify Home Pros specifically?
Run us through the same 9 points. Home Pros is Balint Holdings, LLC, a veteran-owned company, and you can look up that entity through the standard business-registration search for its home state. We are accredited with the Better Business Bureau, maintain a Google Business Profile you can read reviews on directly, and keep an active Facebook page under the same company name used on our contracts. Trevor Rice, our co-founder and COO, is a licensed Texas real estate agent, and our team page lists the people you would actually work with, not stock photos.
We expect you to ask for proof of funds, insist on a licensed title company or closing attorney, and read every line of any contract before you sign, exactly as this article recommends for any cash buyer. If anything about an offer from us does not match what you read here, that is worth a phone call to (830) 510-1597 before you sign anything.
Frequently Asked Questions
Are all "we buy houses" companies scams?
No. Most local cash buyers are legitimate operators who close on the terms they offer, but the industry has no license requirement to enter it, so a real minority of bad actors uses the same signs and websites as honest companies. The checklist above is how you tell them apart before you sign anything, not a reason to avoid cash buyers altogether.
Do cash home buying companies need a real estate license?
Generally no. A company or investor buying property for its own account, rather than representing a buyer or seller as an agent, is acting as a principal, and most states do not require a real estate license for that. That is also why licensing boards cannot discipline a bad cash buyer the way they could a rogue agent, which is exactly why the verification steps above matter more in this industry than in a traditional listed sale.
Should I ever pay a cash home buyer any money upfront?
No. In a legitimate cash sale, money flows from the buyer to the seller at closing, not the other way around. The FTC's mortgage relief scam guidance is explicit that it is illegal for a company to charge you upfront for promises to help you get relief on your mortgage, and the same never-pay-first rule applies to any company asking you for a processing fee, appraisal fee, or deposit before they buy your house.
What is a proof of funds letter and why does it matter?
A proof of funds letter is a document from a bank or lender showing a buyer actually has the cash, or an approved line of credit, to close on your house. A legitimate cash buyer can typically produce one, a bank statement, or a line of credit letter within about 24 hours of your request; a buyer who stalls, changes the subject, or never produces one is the clearest single sign the offer may not be real.
How do I check if a "we buy houses" company is a real registered business?
Search the company's exact legal name in the Secretary of State business entity database for the state where it is registered; nearly every state runs a free online lookup, and NASS (the National Association of Secretaries of State) maintains a directory linking to all of them. A registered, active entity with a named registered agent is a good sign; a company you cannot find under any legal name is a red flag.
Is Home Pros a legitimate cash home buyer?
Home Pros is Balint Holdings, LLC, a veteran-owned company with a Google Business Profile, BBB accreditation, and a Facebook page you can check against the same 9 points in this article. We encourage every seller to run us through this checklist, ask for proof of funds, and insist on closing through a licensed title company or closing attorney, the same as we would recommend for any cash buyer.
Sources
- FTC, Mortgage Relief Scams: it is illegal for a company to charge upfront fees for promised mortgage relief; watch for pressure to sign quickly and deed-transfer schemes.
- CFPB, How to Spot and Avoid Foreclosure Relief Scams: scammers push cashier's checks, wire transfers, and payment apps that are hard to reverse; contact your servicer or a HUD-approved counselor for legitimate help.
- BBB, Selling Your Home for Quick Cash? Not So Fast: verify the company on BBB.org, confirm a real name/phone/address, and complete all payments through a closing or escrow agent.
- NASS, Business Services: directory of state business entity search tools to verify a company is a registered, active entity.
This article explains general red flags and verification steps; it is not legal advice. If you believe you have encountered a scam, report it to the FTC at ReportFraud.ftc.gov, the CFPB, and your state attorney general.
Co-founder and COO of Home Pros (Balint Holdings, LLC) and a licensed Texas real estate agent. Trevor runs the acquisitions and dispositions side of the business, buying houses directly from sellers and placing them with investors. More about Trevor →