Never heard of any of them.

But, what I've seen 100Xs in my career is Charlatans and Opportunists leeching our industry when it's "easy" and then bailing out and leaving us Winter Patriots to clean up the mess and scrub the industry's reputation...once again. 

They are third party entities that can serve buyers in this low inventory, high priced market but the cost is much greater in the end!

I listed a home in which Flyhomes was the buyer agent brokerage. The transaction went very well and all the Flyhomes people with whom I interacted were competent.

My understanding is that the Flyhomes model is that Flyhomes facilitates a cash offer with the understanding that the buyer will refinance through Flyhomes after the transaction closes. Or, they pay cash for the new home and guarantee the sale of the previous home. I was not involved in any post-close transaction and have no knowledge of whatever hoops must be jumped or costs must be paid by the buyer.

It is my understanding the they have found investor funding of nearly $200 Million.

  Bridge Loans.

What are the fees?   

When does the note mature? 

What if the Buyer can't re-fi in time?

How is this different than the hard money that was talked about on this Board yesterday?

I find all these fintech companies reprehensible - they burn through millions of other people's money trying to disrupt an industry where their true niche benefits a very small % of prospective customers, but in a chase for profit, they market to everyone, regardless of need or benefit.

I think I've vaguely heard of them (or something similar) before.

It sounds like they can be a tool for an agent's toolbelt, but like any tool, it has a very particular use.  It is not something I see as a useful tool for the buyers that I usually represent.

My experience has been it's great for the Seller, not so great for the Buyer. Sure the Buyer can get their house, even before selling their current home. But the costs involved are often painful on the other side. 

Hello Pete Xavier it depends on your business model. They can have impact on the real estate market.

Pete,

I would not use any of these...and I agree with Fred Griffin Florida Real Estate take.  A

This is the first I am hearing of them, so apparently, I need to learn more about this.

I may be one of those "Skeptical" people they mention.

Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets and I are on the same page. Never heard of them, but does not sound good!

Looking at what the government is trying to do with mass transportation, subsidized housing, fuel pricing, and electric cars this song comes to mind!

Zager And Evans - In The Year 2525 - YouTube

I think there are people who will go for it. After all, who thought Open Door would have so many willing to sell their home to them? I think it can be good for an agent to be the one to present all options to the homeowner/seller. Educate them and let them make a decision as to what is best. They may seek these opportunities out themselves.

I've never heard of any of the companies you mentioned.

Never heard of them but all that glitters is not gold. 

I am not familiar with them but would like to learn more.

I am the recipient of endless calls from various companies offering to purchase homes all cash - no contingencies - quick close.  I've not worked with any of them - no need. 

I've not heard of the companies you mention. 

Here is the way one works: Buyer gives the website 3% cash upfront, and must be approved by their inhouse lender, insurance agent, title co, realtor... The entity makes the offer to appear as all cash. Buyer has deal with entity to refinance and use the entity inhouse and in doing so gets a 1% refund. But the inhouse services are higher than market cost.  

Here today, gone tomorrow . . . when the market turns, conventional financing will be still alive and well . . .

I glean from all sources, but I remain the one who separates weed from wheat

The only one I have heard of is Orchard, and do not have a big presence in Denver.

Never heard of these companies but R/M offered something like this 2 years ago or so. I thought it was great. I really didn't think the price with the end result was bad. Each company might have their own model which you'd have to check out.

Each of these options raise the transaction costs. That is often the price that must be paid to be competitive.
Examining the provisions for professional representation does reveal where such programs are beneficial to an agent creating leverage that can be used to benefit their client.
These are just tools. Consumers do need guidance. SOME power buyer programs, habitually overpay for real estate. 

Most mortgage brokers have access to similar products. The costs are about 150 basis points to use the service. The borrower needs to be fully approved beforehand of course.

It's a business model that fits the current environment, but not a buyer's market due excessive costs. With an outcropping of companies offering it, I sense we may be close to a turn in the markets that will render its usefulness as unneeded. 

My first impressions were suspicion and negative, but I'd have to research them before I could say for sure.