The best investor is the one who actually closes
When you are selling to an investor, the highest offer is not automatically the best one. The best one is the buyer who can prove the money is real, puts skin in the game, has closed before, and is still standing at the title company on closing day. Houston has plenty of capable investors and plenty of pretenders, and they sound identical on the phone. This is the checklist that tells them apart before you sign.
Run a buyer through these five checks. A real investor passes all of them without getting defensive. If someone bristles at a single reasonable question on this list, that is your answer.
1. Make them prove the funds are real
Cash means cash, and a serious buyer can show it. Ask for a current bank statement or, if they use a hard-money lender, a pre-approval or proof-of-funds letter that covers the purchase price. Glance at the date — a letter from eight months ago proves nothing about today.
If the buyer is using a lender, ask which one and whether they have closed with that lender before. A buyer with an established hard-money relationship closes fast. A buyer who is "lining up financing" is hoping, not buying. Stalling, deflecting, or "I don't share that" on proof of funds is the single biggest red flag in this whole list.
2. Read the earnest money like a commitment meter
Earnest money is the deposit a buyer puts up to show they are serious, held by the title company and credited at closing. The size of it tells you how committed they really are. A buyer risking a token $10 or $100 has bought themselves a cheap option to walk — they can change their mind for almost nothing while your house sits off the market.
You want a buyer willing to put down a meaningful deposit that they lose if they back out without cause. There is no single magic figure, but a real Houston cash buyer on a typical home will commit far more than pocket change. Ask where the earnest money is held, too: it should go to an independent title company, never directly to the buyer.
3. Check the track record — and verify it
Anyone can say they have "closed hundreds of deals." Ask for specifics you can check: a few Houston-area addresses they have actually bought, recent ones. You can confirm a sale through the Harris County (or Fort Bend, Montgomery, Galveston) appraisal district and clerk records — they are public. A buyer who has truly been closing in this market will name properties without hesitation.
Look for local reviews and a real business presence, too. A buyer who has been working Houston for years has a paper trail and a reputation to protect. A brand-new LLC with a stock-photo website and no closed deals is not disqualified, but it raises the bar on everything else they need to prove.
4. Read the contract before you fall in love with the price
This is where good offers go bad. Watch for a long inspection or "due diligence" window that lets the buyer cancel for any reason — that is a soft offer dressed up as a firm one. Watch for an assignment clause ("and/or assigns"), which means they can hand your contract to a stranger; that is legal wholesaling, but you deserve to know if that is the plan and who the end buyer is.
Confirm the closing happens at a real title company, that title and lien work runs through that company, and that there are no upfront fees of any kind. A legitimate investor never charges you to sell. If the contract is confusing, have a Texas real estate attorney or your title officer read it — that is exactly what they are for, and it costs you little next to the size of the transaction.
5. Notice how they treat your timeline
A good investor adjusts to your situation. They will close fast if you need fast, or give you a delayed possession so you are not scrambling for somewhere to go. A bad one manufactures urgency — "this price is only good today" — to keep you from comparing. A real cash price does not evaporate overnight. Pressure is a tactic, not a market condition, and it usually means the offer cannot survive a second look.
Frequently asked questions
What should I ask a real estate investor before selling to them?
Ask for written proof of funds, how much earnest money they will put down and where it is held, a few Houston addresses they have actually closed on, whether they intend to assign the contract, and whether they will close through an independent title company. Honest investors answer all of it plainly.
How do I verify a Houston investor's proof of funds?
Request a recent bank statement or a hard-money lender's proof-of-funds letter dated within the last few weeks, covering the full purchase price. For a financed buyer, ask which lender and whether they have closed with them before. A vague or stale document is a warning sign.
How much earnest money should a serious cash buyer put down?
There is no fixed rule, but a token deposit of a few dollars signals a buyer keeping a cheap escape hatch. A serious buyer commits a meaningful amount held by the title company that they forfeit if they walk without cause. The bigger the genuine deposit, the more confident you can be they will close.
Is it bad if an investor wants to assign my contract?
Not necessarily — contract assignment is legal in Texas and common with wholesalers. What matters is honesty. You should be told upfront that they plan to assign rather than close themselves, and you can ask who the end buyer is and request that arrangement in writing before signing.
Should I have an attorney review the offer?
For anything that confuses you, yes. A Texas real estate attorney or your title officer can flag clauses that let a buyer walk or shift costs onto you. It is a small expense against the size of the sale and worth it if the contract is not crystal clear.
How we hold ourselves to this
We tell sellers to run this exact checklist — including on us. We are a local, family-owned Houston company; our founder Maxwell Buffamante is a licensed Texas REALTOR® with eXp Realty, so we operate under a code most investors are not bound by. We will show proof of funds, put real earnest money down, close through an independent title company, and tell you honestly when a listing would net you more than our cash offer. If you would rather pit a few vetted buyers against each other, that is what multiple offers does. Either way, see a real offer or ask us anything first — no pressure.