Off Market Deal Question

[Kevin Dickson]

Hey guys! I have been doing a tiny bit of driving for dollars and as I prep/goal set for 2018, I told myself that I am GOING TO find, and close, my first deal next year. I plan on really ramping up on driving for dollars to find some off market gems. I am also going to try my hand at direct mail marketing.

Long story kind of short, if I drive for dollars and send a letter out and someone agrees to sell me their home for pennies on the dollar, can they accept regular bank financing? For example, if I get a prequal letter from a bank saying that I am approved for a loan up to $500,000.00 USD, and I find a house valued at $325,000 and the owner agrees to sell it to me for $200,000, can I just use the bank's money and give it to the seller?

The reason I am so confused about this is I feel like when I hear stories about wholesalers, direct mailers, offer market deals, I ALWAYS hear about people "paying cash". I don't have $300,000 sitting around and I don't want to deal with a private lender so I wanted to know if conventional financing works for off market deals.

As always, I appreciate ALL comments ;-)

[Ray Lai]

@Kevin Dickson

Sure you can be pre-qualed but the issue is that a lot of the selling points that works in most direct mail won't work for you, like closing quickly, being flexible, and paying cash quickly to get a discount. You'll need to find a more flexible seller and likely won't get as big of a discount, but if you do find a motivated person it'll still work.

If you want a direct mail game plan or checklist, let me know and I can send you one.

Good luck!