buying a home for cash

rookieNYC · December 8, 2007, 1:33pm

Buying all cash cost the seller 12 percent… I am going to mitigate the cost of money every step of the way… And keep in mind that even if you have the money it still cost you to use it…

Michael I would appreciate if you could elaborate on this…I’m curious as to why it would cost me money to use funds that are sitting in money market funds…?..

I definitely can see that I could use xxx amount of dollars to leverage more properties,thats obvious but not for me entirely…

CashCow · December 11, 2007, 2:59am

jb_bak post:5:

OR…

You can buy the houses all cash then refi after you fix up and get a tenant in it. Just did one that way, I bought it so far under market value that I had no problem getting my purchase plus rehab plus closing costs both times out of the deal. The first closing is very cheap when no banks are involved(I always use attorneys) That way, you can use the same $$$ to buy many houses over and over again. At an extreme discount that is. I just started doing this, can’t say it is a winner yet, but the first one sure went well. I had a huge advantage with this house, I really doubt anyone would have financed it the way it was(total cosmetic disaster), so an all cash offer with no financing contingencies won.

BK - What lender can you use afterwards that will allow you to refi with little or no title seasoning? Seems with the changes in the industry that there are not many lenders offering cash out refi’s on non owner properties that have little or no title seasoning, USING the new appraised after repair value. do you have any recommendations to do this going SIVA?

CashCow · December 11, 2007, 3:05am

BK - What lender can you use afterwards that will allow you to refi with little or no title seasoning? Seems with the changes in the industry that there are not many lenders offering cash out refi’s on non owner properties that have little or no title seasoning, USING the new appraised after repair value. do you have any recommendations to do this going SIVA?

makethemoneyonthebuy · December 12, 2007, 5:54pm

CashCow, I just did a cash-out refi SIVA on a sf house I paid cash for in mid-october. Ironically it was with CountryWide. Paid $42000 put $13000 into it took out $62000 @ 7.625% appraised out at $110000. Will I be able to do this next week? No one knows. All I know is I got this one.
mtmotb. :biggrin