Explaination of "We Pay Cash"

When investors use the words “We Pay Cash” in ads they run in the paper, what do they mean by this? Does this mean they are going to pay cash for the entire property? Or does this just mean that they will bring in financing to give the seller some money at closing?

It’s going to depend on the situation. If I find a home that a person has alot of equity in and just wants out I will cut them a check. It also could mean that after you get control of the house and find a buyer that qualifies for a loan that they get cash then. Either way the goal is to get the seller’s home and then sell it to get the mortgage paid off and make a little profit. Hope this helps.


Ok, so you do actually give them cash for their home. I definitely wouldn’t have enough cash to buy a house outright, and would need to bring in financing.

Thanks for the help.

I was just discussing this. When I say this, it doesn’t mean I’m paying in cash, I use it to mean that I don’t have to get financing, therefore I don’t have to go through a lengthy time getting a loan so I can close as fast as I can get clear title report back.

I advertise cash in 24 hrs, but was asked about it only once from a prospect and I never cashed a house. My answer was simple… If the price is right, yes I will pay cash. Now, do I have to have the cash? absolutely not.

  1. If the property fits hard money formula and I cannot get it sub2, then I can get hard money loan and pay for it. As far as the seller is concerned, he is getting cashed out. He does not care where the money came from. This is usually my last option on pretty houses.

  2. I offer cash for their equity not what they owe to the bank. Basically, when I buy a house sub2, I give the owners their equity in the form of cash and take over their payments. Houses I buy sub2 usually cost me upwards of $2k cash. They don’t care if the bank gets paid or not. They just want THEIR cash to move on.

  3. We pay cash does not mean we will pay the whole amount cash. If the house has lots of equirt, then I could negotiate giving the owner some cash now and the rest when I sell. I never said “all cash”, I just said cash.

Based on these three concepts, I can offer and advertise cash. If they want all cash, then they need to bring the price way down. Otherwise they need to owner finance, or give the property sub2 and get some cash.

I was always under the assumption the “We Pay Cash” just meant that the seller is getting all cash for the sale. It doesn’t matter if it comes from your pocket or someone else’s, hard money or traditional. They are getting cash and not terms (owner financing, rent to own). If someone asks me, I just tell them that they will receive all cash for their property once it closes. They have NEVER asked if it is my cash. :beer

I think the expression “paying cash” is being over analyzed a little.

Unless the seller is taking back financing, the buyer is paying “cash.” It’s just a question of whose cash you’re using.

Whether you borrow the money or have it in the bank, the net result is the same to the seller: all liabilities are paid off and whatever is left over is given by check or wire.

Having said that, the phrase “we pay cash” does resonate well with some sellers. I suppose it gives the impression that the buyer is financially strong and, more importantly, can close quickly without having to qualify for a loan (even if the reality is that you’re using a HELOC or hard money or some other source that allows you to close in days).

I think the fact is that sellers don’t care about a true “cash” sale as much as they do a fast one. I don’t think saying “We Can Close Fast” is as powerful as “We Pay Cash,” though. There’s just something magical about the word “cash.”