Investor · Seattle, WA · Member since 2011 · 84 posts · 10 votes
I have quite a newbie question: when someone says "we buys houses cash" does it really mean actual, physical bills? If so, why would that be preferable to a check?
Also, how is the wholesaling method ("we close quickly") different from the traditional method (which I'm not that familiar with). It still has to go through escrow, right? What is quicker about wholesaling that would make a person accept 70-80% of FMV to get it over with?
Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
15y
Nope, doesn't mean physical cash...
What is means is that they don't need to get a loan, which can take several weeks (or longer) and would hold the transaction up. By paying cash (which is actually a cashier's check or wire transfer), the buyer can generally close very quickly, sometimes within a couple days.
So, long story short, cash just means that they have the cash to purchase without getting financing...
Specialist · Cleveland, OH · Member since 2011 · 1k+ posts · 852 votes
15y
J Scott is correct about the cash question.
As for wholesaling, there are so many different circumstances that would cause someone to sell quickly. If you are looking to be a wholesaler, I would be looking to buy a lot lower than 70-80% of FMV.