Cash is king

[Mike Mitchell]

We all know cash is king.  It seems as if all off-mls/motivated seller deals require  a "all-cash" purchase. If i dont have all cash on hand. Is it possible to get all cash deals? Does a hard money loan count as all cash? can i buy a "all-cash" property with hard money and refinance after? I am looking in a market where such deals would require upwards of 300k cash (NYC). I have enough for conventional loans (25%) plus  minor renovation.

[J Scott]

Originally posted by @Joe Villeneuve:

Q:  Does a hard money loan count as all cash? 

A:  Yes

.

If you try to buy an REO from a large bank or FNMA/FMAC, indicate that you're paying cash and then try to close with an HML, there's a reasonable chance they'll kill the deal and keep your earnest money (and get away with it given the addendum you'll sign). Of course, if you offer cash on an REO, the bank will ask for a proof of funds in the form of a bank statement -- if you can't provide that, you won't even get to the point of a ratified contract.

And while I can't speak for others, if someone makes me an offer and indicates that it's cash, I'll ask for a proof of funds as well.  If they can't provide it, I won't accept the contract.

A hard money loan is still a loan, and is actually riskier than a conventional loan from a seller's point of view.  If you don't have the cash in your account and can't provide a proof of funds from an account with your name on it (or your business' name if the offer is made in the name of a business), you may find yourself in a tough position later...