How common are $2m all-cash offers these days?

[Dan Bowe]

I'm bidding on a 40 unit complex in the Midwest. Asking price is $2mm.

Property is on the market for a short time. Broker asked for B&F offer by tomorrow and said that he has two all-cash offers around the asking price.

The property is pretty attractive at that price point.

How can I know if broker is ********ing me? Are all-cash offers at those prices common these days?

[Evan Polaski]

@Dan Bowe, while I can't speak to whether the broker is ******** you or not, there are certainly all cash offers at that price point.  

From a purely financial return POV, cash is a smarter move than using debt on a lot of deals.  If this property is trading at an in-place 6% cap, and debt is being quoted at 7%, is it detrimental to your returns to go in with any debt at acquisition.  

So, again, I don't know the property or broker you are talking about, but I do know that in real estate, $2mm is next to nothing in terms of capital.  I know that cash offers make far more sense financially than leveraged deals.  And there appears to be significantly more demand for properties than there is supply.