If I have a HELOC am I essentially a cash buyer?

[Drew Spencer]

I'm looking to make an offer on my first investment property within the next couple of months. I know that speed is essential in finding good deals, and I hear a lot about cash offers or cash buyers closing quickly. I have a lot of equity in my home, and I'm wondering if getting a home equity line of credit, or if getting pre-approved for a home equity loan essentially makes me a cash buyer. Do I need to take out a loan prior to putting in an offer in order to close quickly, or are there some pre-approval steps that I can take that will allow me to put in offers and close deals quickly without having "cash" on hand?

[Dan Barli]

Hi @Drew Spencer, I would suggest that you actually GET the HELOC in place. Once you have the line available, if the line will cover the entire purchase price plus closing costs, then you can submit your offer as a cash offer, which of course makes it more attractive to the seller. If you are only pre-approved, I would NOT recommend you submit your offer as cash because there is a chance you don't close on the line.