Starting Out
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
Updated almost 8 years ago, 03/07/2017
Saying that "I buy houses for cash"
Get acquainted with some hard money lenders. That is how you can buy houses with cash and close quickly.
Sam R. , so until I can save up the 25% or so that HMLs require, should I just not advertise quick, cash closings?
@Teresa DelaMater If you have a list of buyers who can buy with cash and quickly, that would work too. Buyers who are able to buy quickly get priority with the wholesalers.
I have heard on many BP podcasts and been told by RE investors in my local group, that if you find a deal, the money will be there. If you are short on cash, you could try to find a money partner to split deals with. That might help you to be able to secure the financing for the property whether it be hard money or some other financing.
I am not sure what your investing goals are, but if I were you, I would focus on finding the deal(s) first and worry about the financing second.
In the meantime, while hunting for the deal, network and secure the contacts you need to be successful.
Good luck in your journey!
Ed
Sam R. and Edmund Ricker , I don't know any buyers or hard money lenders yet. I've joined a local REIA but so far I've only been to one meeting. If anyone knows of any buyers in the Houston area, I would definitely appreciate referrals!
@Teresa DelaMater Don't worry - the guy who put up that sign doesn't have big piles of cash either. 99% of those are people that plan on assigning the contract to someone with big piles of cash (or better yet, big piles of Other People's Money). You can start there, find a money parter, or seek out an HML that doesn't require 25%.
I know that there are some HML that will only require 10% down, but you will likely pay more points. I would recommend getting pre approved before you tell people you can close with cash. Otherwise it is misleading, and disingenuous.
Jason Hirko and Pete Perez , thanks for the advice! I'll start doing some research on lenders and their options.
As @Jason Hirko said, those people don't have cash either.
First and foremost just be honest with your seller. Tell them you're going to take their property to your buyers and they'll be the one ultimately purchasing the property from the seller. If the deal is good, someone will buy it. If it's not good, no one is going to buy it. Be sure you find a great deal before you tie up the property with a contract. It won't be fun going back to the seller and telling them you can't buy it after all. They'll have gotten their hopes up, started to move, etc. The key is to have a large network of buyers AND make sure you're finding GOOD deals.
Simple ... if you do not have the cash, can't close quickly, and have no intention of closing yourself, then don't tell home owners that you buy all cash and close quickly. Be honest in telling them what you are going to do, and then follow through and do it. If you can't or won't do it, then don't tell them you will.
@Teresa DelaMater message me. and ill send you my number i can answer some of your questions.
i'm not an expert by any means but i think i can help.
ive been doing wholesale, rehabs to flip and hold.
Nick
@Teresa DelaMater If you find any good deal that you can wholesale (your numbers at 50% to 60%ARV-repairs) and you can wholesale at 70%ARV-Repairs, you will have no trouble finding end buyers to invest in these properties. Pitch them to others you network with at the REIA (especially to anyone in the lobby with a red dot on their nametag, those are the big dog members. Be sure to have all your numbers and information available to give to them and go over), you may also want to try selling them to Net Worth Realty, New Western Acquisitions, and agents at Lifestyles Unlimited or Lifestyles members; but be certain your numbers are good. There are a lot of wholesalers out there that pitch to these people and the numbers aren't really there. When these groups/people find a wholesaler who actually knows what they're doing, they will give you more business and that is PRICELESS.
@Teresa DelaMater As for hard money lenders, simply do a google search for them in the Houston area. There are a number of them (Jet Lending comes to the front of my mind), and they are also good sources of your end buyers. Just give them a call and begin building rapport.
Thanks everyone for the great advice!
Hey @Teresa DelaMater, I would advise against advertising something you don't have setup. You don't need to have the money in your account, but absolutely know where it is going to come from in advance. I would also agree, know your numbers to make a good deal and the money is the easy part. You could also find someone to partner with who has money, send them the good deal details and close. You will soon realize money is easy, finding the deal is much harder.
@Teresa DelaMater I'm a buyer all over Houston if you find a real deal. Good luck, deals are hard to comeby. But like others said , find a deal and the rest is easy there is a lot more cash out than there is deals right now.
#1 Personal Finance Contributor
- Rental Property Investor
- East Wenatchee, WA
- 16,092
- Votes |
- 10,239
- Posts
#1 Personal Finance Contributor
- Rental Property Investor
- East Wenatchee, WA
Since you'll be the only one out there saying you will buy all cash and c!ose quickly, better be prepared. Don't tell me- any location, any condition? Nobody's saying that! Lol
Be different. Be a specific and creative problem solver. "Lower Valley Landlords- I want to buy your plex! Like the monthly, not the headaches? Local established buyer with many references.". Sample CL ad for seller-financed plexes.
ID something specific and be an expert in that space. That tired old lame-o message will make you a needle in a pile of needles. Good luck!
#5 Wholesaling Contributor
- Real Estate Broker
- Naples, FL
Line up financing in advance if possible. There are tons of those "we buy houses" ads...but they DO get responses. Marketing, heavy and consistent is the key.
That's a very good point, @Steve Vaughan I definitely want to set myself apart. And @Baltazar Camacho I will let you know when I find something. Thanks!
You know,I am a biginner in this game,and I don't have any miney either but I try to buy from wholesalers who are trying to sale their properties at high price so I negiciate fair price but relly good terms,and low or no money down. It is working for me so I'll keep doing it until something else comes across. Good luck and if is there anything I can help...just ask.