Need help on how to prepare to make a cash offer tomorrow!

[Patrick Roane]

Hello out there from the San Francisco Bay Area! 

Happy Friday everybody. 

We are new to the game and need some wise advise on how to best prepare to make a cash offer on a 1 bd/2ba condo unit (1st flr) in Stockton with a focus on obtaining funding for a cash offer. We plane to either flip it or BRRRR it, preferably do a BRRRR.

Details below:

• We are not dealing with an owner in this instance. Instead, the property is being listed "as is" and there is an open house tomorrow afternoon for anyone willing to make a cash offer. 
• The place is in a state of disrepair to the tune of 30K plus/minus. 
• Asking price: listed as "investor special" at $75,000
• ARV is around: $150-160K (recent comps are coming in around 150=155k)
• HOA: $350
• Rents w/in the condo complex range between $1,195 on the low end up to $1,400

Do compete w/other investors who will probably be chomping at this bit for this place, we'll need to contact a hard money lender who will help us with the funds needed.

Any tips on the best way to proceed here would be most welcome!

Thank you.

Respectfully,

Patrick 

[Kyle J.]

A couple thoughts:

First, a hard money loan isn't really a cash offer.  A true cash offer means you have the cash in a bank account with your name on it and you can show proof of funds.  So just be aware that.  I know what property this is and it's listed with an experienced Realtor who is likely going to ask for proof of funds if you submit a cash offer.  If they're really looking for a cash offer that might be an issue, especially since it sounds like you don't even have a hard money lender lined up yet (much less a commitment from one).

Second, if you do end up submitting an offer, make sure there are no restrictions that would prohibit you from renting it out since you said you might keep it as a rental. Just because there are other rentals, doesn't mean there aren't rental restrictions. I've seen condo associations that have restrictions such as no renting out a property in the first year of ownership, or that limit rentals to a certain number or percentage of condos within the complex with a waiting list a year long. That could be a big problem if you didn't intend to occupy the property and you only intended to rent it out. So check with the HOA first to make sure you'll be able to rent it if that's your intent.