@Paul Schaefer A cash buyer is anyone who can write a check to purchase the property and close on it without having to wait for other funds. They have the cash in the bank.
Is a cash buyer only someone who has liquid cash? Is hard money or private funding considered a cash buyer? What is actually considered a cash buyer?
In my very limited experience, it seems that cash buyers are more likely to get an AS-IS deal than someone who uses traditional bank financing.
I’m still looking for my first deal & am trying to increase the odds that I will get an offer accepted.
A true "cash buyer" has cash in the bank to buy the property. An "acceptable" use is someone that has been pre-approved for a loan. It's still "cash" it just happens to be the bank's cash.
An often misused and I think "slimy" use of the word is by Wholesalers who SAY they are "cash buyers" but once they have you under contract they have to find someone who has the money to buy the contract with cash because they don't have "cash" themselves. This is patently dishonest but unfortunately very prevalent.
So, I always ask that they text me a photo of their bank account balance. They can block out the account number, I don't need that, but most people simply go away because they aren't really "cash buyers".
I would define a cash buyer as someone with all the funds required to purchase a property in an account with their name on it. If you have to borrow the funds from someone else (i.e. bank, hard money lender, private lender, etc) who has the ability to approve or decline your funding, then you're not a true cash buyer, in my opinion.
@Paul Schaefer A cash buyer is anyone who can write a check to purchase the property and close on it without having to wait for other funds. They have the cash in the bank.
@Paul Schaefer. From a seller’s point of view a cash buyer is an entity who can close quickly with no conditions. No appraisal and no loan to be processed. Short of that there are other things you can do to make yourself more attractive as a buyer. Get a letter from a lender saying you qualify or are pre-screened. If you’re willing to take a risk and you’re confident about the property, waive inspections or have a very short inspection window.
The fine print on any HELOC I've ever seen states it can be recalled at any time at the sole discretion of the lender. And they don't say "you've got 120 days" when they recall it. So having room on a secured line is not the same as having cash that cannot be recalled in my opinion.
The fine print on any HELOC I've ever seen states it can be recalled at any time at the sole discretion of the lender. And they don't say "you've got 120 days" when they recall it. So having room on a secured line is not the same as having cash that cannot be recalled in my opinion.
Gotcha. So open credit line is no guarantee of funds availability. Good to know.
@Paul Schaefer, I would say that a "cash" buyer is anyone with liquid assets or open line of credit where they can access the funds needed to close without ANY contingency or approval from anyone other than themselves.
Cash in a bank account obviously falls under this. An age based 401k withdrawal would apply. A 401k loan might also be considered cash because this type of loan cannot be denied as long as its following the rules for that type of loan.
I would even consider a stock portfolio of sufficient value to be cash because as long as its invested in commonly traded stocks it is liquid and can be turned into cash easily before closing.
What I do not consider "cash" is anything that required the approval of someone other than the buyer to access.
I just bought a SFR with a cash offer "as is" with no contingencies a few weeks ago. However, I didn't have the money. I had to quickly do a cash out refi on a property I owned outright. I was able to close in four weeks. Got my refi done on the other house in 3 weeks, then finally had the funds. The seller was patient with me fortunately. I did tell the agent it would take me 3 or 4 weeks to get the cash.
Technically you can say it’s a cash offer and still use financing. However, if you don’t actually have the cash in the bank and you don’t have a financing contingency you’ll have a problem-you’re in violation of your contract. I write to offers for my clients that say cash when really it’s hard money. I tell the seller that it’s hard money not “real” cash. As someone else pointed out, it’s all cash to them!
Cash buyer is someone who has the funds in bank to buy cash or has access to line of credit that is same as cash for example a HELOC. Hard money, etc. or anything with appraisal needed to use the funds isn't cash. I typically send blacked out bank statement with offers for clients when cash so the sellers side knows we really have the funds.
No idea, but I will by your house AS is, Where is, Now. Money in bank. will wire as soon as the title ladies' get done messing with there computers. Fastest title company gets to sell the title insurance. 650 bucks for hitting the print button in most cases. Office people are SLOW!!!! My fastest close was in 4 days. But that was my records.
The hard truth is this ==== If you are bad with money. Forget about it. feed your 401K and try to survive. You will always suffer.
Also worth noting while a homeowner may be lenient if you say cash but come to the table with approved hard money or some other kind of financing, if you're buying an REO from a bank they might shut you down.
For a seller to consider me a cash buyer, all he needs is a non-Mortgage contingent offer, IMO.
I always have the cash to close as well most of the time, but even when I don’t I make a cash offer, no mortgage contingency, hard deposit ($100-$1000 doesn’t count as a deposit IMO).
I regularly make a cash offer (no mortgage contingency) with a quick close. I've never had an issue with closing with a HML. It's no ones business how I am closing. It doesn't affect the seller at all.
Access to funds with ability to close quickly. Equity line, LOC, etc. I would even consider hard money if it's a pre-existing relationship and you can have $$ in your hands in a day or two.