Hard money treated same as cash?

FOR Reos I am wondering if you are all getting your hard money offers treated the same as cash or not.

Also if you make an offer “ALL CASH” are they going to request to see all the cash in your account at that time or do they not care as long as they get the their deposit money

Also can you just make an offer all cash, and then later use a hard money lender to fund it?

Hard money is just another form of “3rd Party Financing”. When I have sold properties I never believed that the buyer actually HAD cash so a CASH offer is not given much more weight if any. Plus you lose some of the “escape Clauses” found in a contract with 3rd Party Financing. Ask your Real Estate Agent.

Most REO listings require the the person making the offer to either provide “proof of funds” or a prequal letter from a financer. You can’t just make a cash offer and hope that you find a lender later, the underlying banks aren’t going to allow that. your offer must be accompanied by the aforementioned if thats what the seller wants. a sales agent is not required to submit an offer if it violates specific criteria set out by the seller in the lending contract, so don’t even bother trying without the proof of funds or prequal letter from your lender.

I have a “proof of funds letter” from a HML, but i’m not sure if I want to use them for sure.

Do you think they would care if I switched to some other HML or private money once I got it under contract? It doesn’t seem like they should as long as it closes.

I’m also approved for an investment property loan from B of A , but the properties that seem to be the deals , are listed as “cash offers” only , plus it doesn’t seem they want to do loan amounts of under $30,000, and they probably don’t want to lend on something that needs some work either.

Are big banks still not lending on REOs that need some work? Or is it mostly ok as long as it is cosmetic stuff, would they make you put the repair funds in escrow or something before the loan closes?

Try a local bank. If they don’t want to do an amount that low, see if they’ll roll another house into it to do a loan on both of them.

I dont know of any big banks that are doing rehab loans, barely even the small local banks…
So you’re saying youre problem is that you have too many financing sources to choose from, geez that must be rough… :beer

Yeah I guess i’m just trying to think of which properties are considered rehab properties by the bank. If the house just needs some cosmetic work like carpet paint,etc are they going to say “it’s a rehab property we won’t finance that!” ?

Most REOs need some type of work

Yeah that’s definetely a good question, and one which I don’t really have an answer for, as to what the bank determines is a rehab vs a non-rehab. christopher w could probably answer this question.