Profile picture for rymac715

Econohomes

Hi has  anybody heard of this company. Econohomes llc
they want you to wire them  10% down along with your offer . this sounds like a bad idea  to me  , my business partner  thinks its all good . I need some answers .

Thanks


Morris
  • July 26 2011 - US
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Answers (25)

Profile picture for wetdawgs
bad idea!
  • July 26 2011
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Profile picture for BigMoneyMagnet
What is it that you're looking for?  Rehabs, turnkey, etc?
  • July 26 2011
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I know of a person who did it. They usually buy the houses off of the MLS, then sell to people in installments. There are some fees which seem kind of steep. The whole thing about it is. You fix up the place and pay them at the same time. Hit hard times and you are out of luck.  You can find comparable properties through an agent. If you don't have the cash or credit then this can be an option for you. Do your DUE Diligence ask for references and talk to people who have purchased from them.
  • July 26 2011
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Profile picture for sunnyview
Don't do it. These services are not a deal and a local agent can do the same a or better without the 10% upfront premium. You can find a deal and do it without the unnecessary risk or wiring money to an unknown company.

I would also consider changing your current business partner unless they are 100% of the money. Their advice in this matter is not sound.
  • July 26 2011
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Sounds like a clearing house of distressed properties!  You should be able to submit offers without 10% (that's a lot).  The most we ever ask for is $2,000, but in most cases we don't even bother with deposits.

Be careful !
  • July 26 2011
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Alert!! Alert!!  Do not proceed!  An offer to purchase real estate must be in wriitng and include a deposit of earnest money to be valid in most states. However, real estate agents who are licensed, must hold this money in a trust account.  This protects the buyer from a seller who might take the money, or an unscrupulous third party who may "comingle" the funds with thier own personal funds.  This would in effect make your money dissapear!  Make sure that you know the amount of money that is reasonably expected to be deposited as earnest money with an offer for you area.  Anything more is a red flag!
  • July 26 2011
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Econohomes is a legit business that has sold 1000's of properties.  I have bought many properties from them and have found them to be a company of honestly and integrity.  They have always been straight forward with me and bent over backwards to make sure they treat their customers fair.  They are a nationwide wholesaler that buys in bulk directly from the banks and then sells the properties individually to local investors at a discount.   A buyer talks with one of their sales people and comes to terms on the price.  Then a deposit & contract come into play.  These guys are not crooks, they are trying to get foreclosed properties in the hands of local investors with plenty of margin left in the deal.
  • July 27 2011
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Profile picture for sunnyview
I'm sorry Eric. I see that you registered on Zillow just today, but your post sounds like pitch to me. The original poster should not be paying a 10% premium to anyone when they don't have to and wiring a company money when you know nothing about them is always a bad idea.

Even good companies may have complaints, but Econohomes has more than would make me feel comfortable here, here, here plus others. No one should have to send money up front to get an REO. Bank owned properties are a dime a dozen in most parts of the country. A local agent will help buyers purchase property without acting like a Nigerian scam artist and ask you to wire money up front. Welcome to Zillow.
  • July 27 2011
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Profile picture for Dan Novotny
I have helped close about 20 deals with Econohomes.  At first I was unsure about the transaction because it is very different than a traditional real estate sale, but after dealing with them for almost a year I understand their process.  They buy these packages directly from the bank.  They sell these properties fast to investors.  The 10% deposit is refundable if it does not close.  It holds the property for 7 days.  If you have any questions feel free to contact me about them.  My email is [email and phone removed by Zillow moderator]
  • July 27 2011
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Profile picture for sunnyview
I would like to hear more and  have a few questions if you don't mind. Why should someone deal with Econohomes instead of dealing with an agent directly? What is the advantage?

I understand that the titles on some of the Econo properties have issues. Have you experienced any unexpected delays in closing your deals?
  • July 27 2011
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Profile picture for sunnyview
I found this Case Western Reserve study here that describes the Econo homes model on pdf page 13 interesting.
  • July 27 2011
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Profile picture for Dan Novotny
Give me a call today I will talk to you about it and answer any questions you have. 
  • July 27 2011
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We have purchased a couple homes from them and it is scary and requires a lot of work but so far it has been legitimate. Please remember you are buying straight from the seller...you are never going to get the whole story. You must complete a huge amount of due diligence on your own, i.e. title checks, back taxes etc.. This is for the savvy and gutsy buyer. The only reason we considered it was because they owned and are selling a property we want.

  • September 21 2011
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Profile picture for sunnyview
It is good to hear that you were not scammed. Sending a company 10% sounds scary.
  • September 21 2011
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Profile picture for user3581862
This seems kinda spooked but as far as sending money no no no.as far as a scam no scam but its what's after the hidden taxes back fees ugh you will have some sort of problems. I just want to go and sit with someone from ecno homes this will be best
  • January 10 2013
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I am very familiar with this company and I can give you a direct contact name of someone I work closely with if that would make it easier for you.  Send me a message if you would like the information.
  • January 10 2013
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thought i would let you know i bought a piece of land and a doublewide from them the transaction was scary at first, sending some one you never seen in person thousands of what is a down payment..but i did and it was well worth it just call the county and city to make sure there is no taxes owed on the property and make sure there is no lien on the property..i had to pay about 300 in delinquent taxes..but it could have been much worse ..everything went well and when we got it paid off it was transfurd to our names and the title on the mobile home was mailed to us and the deed to the land was transfurd to the county i reside in and was also put in our names.so when it was all said and done it was a great transaction and i will buy from them again someday..they say you can`t use the property as your own so what we did we sold it then bought it back.to make it legal for us to use it and live in it as our own..so give it a shot..shannon
  • January 16 2013
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I just purchased a home from econohomes. Did my own title search just to verify there were no liens as it is the purchasers responsibility. I was scared seeing a few bad reviews, but I am glad I did it! Just do your own title search for reassurance. I will buy from them Again if they have something in my area ! Paying was easy and I was able to close quick! Pretty much the no hassle way of buying a house without all the closing cost fees and etc. They have their own They do have their own fee which is around $1700 but it totally worth if you get a good deal! Their houses are priced at such a good deal and you can't find deals like they have anywhere really.
  • March 24 2014
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Profile picture for cushy6
We purchased a home from them.  Beware.  There is a reason they are so cheap.  I'm sure you are already aware that the types of homes that they sell are "distressed", which means that you better be absolutely SURE you know what you are getting into, because you are on your own.

We had no problem with the price or the property.  We knew everything that was wrong with the house and we knew what we were getting into.  Please don't be naive.  And please don't rely on "their" inspection by a "reputable" contractor.  For the love of Mike, don't be that dumb.

What you have to be careful about is the title and the taxes.

On TITLE: Econohomes barely barely barely does the minimum research to do the title transfer.  They use 3rd party companies for everything they do, to eliminate their liability.  So, you may get a cheap home.. only to find out that someone else still owns it or that there are legal disputes.

Therefore, if you don't care, and just want to flip the property onto someone else quickly, then just grab the property, slap some paint on it, turn a blind eye and sell it again.  Quick.
However, if you want to actually own the property and move there, you need to decline Econohome's cheapy title company and use a reputable company to do an extensive title resolution.  It should only cost you 500 more than their company and it is worth its weight in gold.. and odds are, they'll find something and get it resolved.

On TAXES:  Econohomes will usually agree to pay the taxes as part of the sale.  This is a lie.  They have no intention.  They will re-sell the tax portion of the sale to another company, who will then sell it to another and another and another, until it is beyond your ability to figure it out.  Therefore, just plan on paying the taxes.  Or make an agreement with Econohomes that YOU will pay the taxes and they need to waive that amount from the sale.  Trust me.  Otherwise, your house will go into default and you will get screwed.

If you are aware and prepared for the risks, then proceed.

FYI - as a side note, if you are ready to proceed.  DO NOT DELAY.  Econohomes sells to the first buyer who can get a deposit into their hands.  Call right now!, wire the money right now!, no matter what, no matter how hard you cry, it's first come, first serve.  There are companies out there that wait to see activity on a home and then snatch it up while you are trying to decide.  Boo hoo for you.  That's life.  Get your deposit in place and THEN do the inspection.  You can get your money back, but not your place in line.
  • April 10 2014
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[self promotion deleted by Zillow moderator. Please see our Good Neighbor Policy for posting guidelines]
  • September 30 2014
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I read this as Eco-No-Homes as in any home promoting itself as an EcoHome is full of it, which often seems to be the case in Chicago.

 So while this post turns out not relate to that, I think some enterprising builder should come out and be fully honest by saying there is nothing eco about our homes, which is why they are called Eco-NO-Homes, with garages big enough for your Hummers and all night sprinklers for the enormous lawn you never use.
  • September 30 2014
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Profile picture for dlindsay2000
I bought a house from them and had the same uncomfortable feeling but worked out okay for us. They did what they said to the letter..but I looked them up on Wikipedia and also some real estate people I knew and they all said it was ok...so I took the leap of faith and bought the house. Got a great deal and I have no complaints.
  • October 25 2014
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Profile picture for sunnyview
Sending any company 10% including Econohomes is not a good idea. I am glad it worked in your case, but no one should have to send money up front to get an REO. 
  • October 25 2014
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Profile picture for AndreaHermanBrainard
Does anyone no of any other companies like econo homes, that have property out on the west coast. Bought one of the internet from econo home on the spot. It was a killer deal, yes took and is still taking a lot of work, but looking to flip this one and looking for our next move and they don't have any properties out west, but they are the real deal, wish they'd buy out westward
  • November 13 2014
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Profile picture for tentminister
I bought a home from them with that way, and they are legit.
 
  • April 17
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