I just had a wholesaler contact me and asked if I am a cash buyer. As a newbie, I’m wondering if buying with the help of a HML I would be considered a cash buyer. How long does a HML usually take to close on a loan?
Thanks
No quite cash as most HML still require a week or two to approve your deal and get the funding. It’s still faster than conventional loans.
Howdy Jason:
Wholesalers are getting picky. A lot of them want $1k up front as non refundable earnest money where you risk a grand if you do not close for whatever reason. The last contract I wrote I wrote without a loan contingency making in in essence a cash buyer but I had 30 days to inspect and 30 days after that to close. It was a commercial building and they generally take longer to inspect and close. I only had $500 earnest money at risk but I had to pay for an appraisal, engineers report, and environmental inspections that cost about $5K.
In a stricter sense a cash buyer is one who has the money in the bank and can close fast.