My realtor tells me that, as an investor, when I make a bid for a fixer-upper or rehab property, I must say “CASH” and bring the money to the table. She says that “average Joe” buyer is always left out because he is going through a mortgage broker, and the investor always wins because he’s bringing “cash.”
I have a fixer-upper property I like, but I don’t have “cash” to buy it. How does the concept of “cash” work?
I don’t really bring “cash” to the table, I bring a certified check from my bank…no one (at least no one in their right mind) would actually got to closing with $60K in $100 bills!
What they are saying is that they want to be able to close fast. Most sellers don’t really care where you get the money from…they just want the money and they want to close in a few days. You might be able to achieve the same thing with a HELOC, ect.
Keith
thanks!
Unfortunately, I don’t have heloc to depend on. I need someone to finance the deal so I have the money at closing. How do I bid as “cash”? How do I get the money before I make a bid?
You’re going to have to talk with the lender/HML/etc. and figure out a game-plan. You might want to get a pre-qual letter from the lender and just make an offer anyway…all they can do is say “NO”…
Keith
You're going to have to talk with the lender/HML/etc. and figure out a game-plan. You might want to get a pre-qual letter from the lender and just make an offer anyway...all they can do is say "NO"...
Keith is right. i f you do not have access to cash then you will just need to do some leg work before making offers.
I have to disagree with his statement to get a prequalification letter. They are a waste of time. Make sure that you get a preapproval letter which requires a broker/lender to actually gather information from you (income, debt, etc.) and gain approval before issuing a letter.
Sounds like your realtor is not being very helpful and not encouraging you very much. Time for a realtor change, find one that that will get it done for you and not waste time telling you it won’t work. You need someone that will make it work.
Mark is right…get a pre-approval letter…I posted at 7:11 AM and the coffee shop here doesn’t opne until 7:15…
CASH??? ???
A purchase funds the same day a closing. For all the seller is concerned a buyer with solid financing is just as good as a buyer with CASH.
IMHO a buyer with soid financing is better than a buyer with cash. Why? Because the buyers who say they have “cash” (in my experience) think that they should get some kind of price break because they have “cash”.
<<Because the buyers who say they have “cash” (in my experience) think that they should get some kind of price break because they have “cash”.>
Yup! …and it works!
Keith
LOL…I’m not saying that it does not work…I’m also not saying that it’s a bad tactic for a buyer…but I don’t see any savy sellers falling for it. ;D
But then your tying up your own capital?