Seller wants Cash, but I can only get conventional financing

[Femi Ibrahim]

Hello Biggerpocket Entrepreneurs,

Thanks for always responding to my messages and giving guidance. I really appreciate.

I have a little bit of a challenge. I was able to get a motivated seller deal, but the seller is basically looking for cash buyers only. The deal is a good deal to wholesale, but I am particularly interested in the house.

It's a duplex, which I plan to buy using FHA 203k financing. Is it possible to get short term private money/hard money financing to pay the owner of the house in cash and then secure the FHA loan within a month to pay off the hard money/private lender?

I am in the Dallas/FortWorth area. This is a great deal I do  not want to pass on.

Thanks

Femi

[Carson Wilcox]

What you are missing is the REASON he or she only wants cash...?  Does he want a quicker close?  Is it jacked up therefore not financeable?  Does he want a guarantee you can close and financing wont fail?

HML will cost you a couple grand PLUS points. THEN you will owe closing costs, title, and all that again when you refi. let alone if you dont already have the process started with a HML, you are a couple weeks out at least.

What I would do is figure out what this person's story is.... and solve it. He wants a quick close? OK, offer him $5k more to wait a month. still a savings over HML costs and interest. He is worried you will fail the finance test... if you are comfortable, give him a big EMD and waive the finance contingency. Talk to them and figure out what their real issue is... it is never a "cash" deal anyway....