What to put in mailers if NOT a cash buyer?

Question

Hello,

I'm looking at running my first round of postcards/mailers. I'm in Massachusetts and looking at a $200-250k price range. However, i'm not able to pay cash for the property and will have to get financing. I'm struggling with what write down b/c obvioulsy I'm not a "cash" buyer. Is there anything else I might be able to write down that may help?

Here's what I have so far for bullets on what I can do for them (I also have a write up on the process but just looking for help with what I can do for them):

Buy as-is (hoping that no major problems that would hold up financing)

Close quickly - I'm pre approved and ready to go

Handle all of the paperwork

Pay normal closing costs

Thanks!

Mike

Rob L. · Answer

@Mike Yerardi What about saying it like it is?

Your a local buy and hold investor that is looking to purchase additional properties in their community. If they are interested in selling, you would pay a fair market price for a property that fits your investment goals(gives you the ability to bring price down during discussion). You could also add that by going direct they would save the 5-6% closing costs that would otherwise be going to Realtor's.

Just a thought.

Rob L. · Answer

@Mike Yerardi What about saying it like it is?

Your a local buy and hold investor that is looking to purchase additional properties in their community. If they are interested in selling, you would pay a fair market price for a property that fits your investment goals(gives you the ability to bring price down during discussion). You could also add that by going direct they would save the 5-6% closing costs that would otherwise be going to Realtor's.

Just a thought.

Mike Yerardi · Answer

Hey Shaun, thanks for the breakdown. You certainly make some good points. I forgot to say that I'm looking to buy and hold instead of flip. Otherwise I might look at other sources of financing. I'm not having much success on CL, word of mouth, mls, etc... so thought I might send out a mailer to get some leads coming in. However, without being a cash buyer i'm not sure how attractive the mailer would be.

Shaun Reilly · Answer

Well let's look at these:

Buy As-Is:  As you pointed out you are getting financing, so anything much past cosmetics could hold up, or totally torpedo your financing.

Close Quickly:  A Pre-approval and the ability to close quickly are in no way related.  Being pre-approved is just an indicator that you should be able to close on the deal as long as your mortgage person did their job, so about 60% chance.  :)

In reality if your goal is to not lie in the mailer these are worse than saying you are a cash buyer.  Since you are getting financing you have no control over these, and in fact you cannot buy properties with major issues and you will still most likely take the normal 30-45+ days to close if things go perfect.  If you say you are a cash buyer the seller will in fact get cash at some point (1-2 months out, if their property is acceptable), just from the bank...

Okay back to your thoughts:

Handle the paperwork:  Not really sure if this would be seen as a positive, negative or unimportant.  Could be seen as you are trying to be slick and want to get them to not have anything reviewed by their own attorney.  But it could have the intended effect of them thinking it will make life easier.

Pay closing costs:  Yes this would be something that I think would jump out at them and be appealing.  Now if you are going to do that you will have to factor that into the amount of cash you have to buy a place.  Assuming no agents involved that should not be a tremendous amount but budget at least 1-2% extra cash you will need.

Now all that being said you might want to look into the creative financing route if you want to contact potential motivated sellers.  Doesn't mean you can't buy something with a bank loan if that works out, but it is pretty limiting.  It also is a cash intensive way to do it where working out seller financing type stuff can be a lot cheaper like that.

What to put in mailers if NOT a cash buyer?

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