How to compete with cash buyers?
I have put in multiple offers for 4 unit properties using the VA home loan only to get beat out by cash buyers. On a property asking price of 325k, I offered 330k w/ escalation clause of 5k over highest bidder up to 350k. Also agreed to pay the appraisal difference up to 10k. I tried to throw them the best I could offer but still no luck against cash buyers. How do you guys compete with cash buyers?? Has anyone used services like opendoor where they will act as a cash buyer on your behalf? I have also thought about hard money lenders but I don't too much about the process. I have set aside 50k in which I was planning to use for repairs, vacancies, and renovations which is why I would much prefer not having to put 20% down. Otherwise I would have to put down 80k plus an extra 20k+ for repairs (hvac,roof,ect). How did you guys close on a 4 unit starting off and competing with cash buyer which are so common in todays market?
Most Popular Reply
Letter to owner, higher offer. Face to face works!