Keep losing deals to CASH BUYERS

[Chris Toedter]

I own a 4 family currently, and I am working on getting my next deal I must have put in 6 offers which all consist of 50k over asking and waived inspections. I have come runner up on places a few time but ALWAYS LOSE to CASH BUYERS I understand why but what can I do differently how do I get my hands on a next deal I am itching for a project.

[Chris Mason]

Originally posted by @Chris Toedter:

I own a 4 family currently, and I am working on getting my next deal I must have put in 6 offers which all consist of 50k over asking and waived inspections. I have come runner up on places a few time but ALWAYS LOSE to CASH BUYERS I understand why but what can I do differently how do I get my hands on a next deal I am itching for a project.

 So, FYI. I am in the San Francisco Bay Area, hottest market in the country by most accounts. I do mortgages, meaning none of my peeps are cash buyers. I only mention that to give meaning to the following:

If even 50% of the supposed "cash offers over asking" that listing agents claimed they had in-hand actually existed, I'd be out of business. 

Don't step in the BS, and don't assume that everything a listing agent says is true. Their job, very specifically, is to maximize either the sales price, or the sales speed, for their seller client. Do they have multiple offers in-hand? Probably. Do they have a cash offer or two in there, maybe lowball? Probably.

Do they have an all cash offer for 10% more than what you're willing to offer and closing in 7 days? Probably not, since why bother even responding to your offer if they've already got that in-hand?! Cash buyers that can close in 7 days are flaky, quick to flight, you don't introduce unnecessary rounds of back and forth with someone that can close in 7 days who is already hitting a number that the seller is happy with! 

Might they be hoping that, by posturing strong, you bump your offer another $25k or $50k? Yes, absolutely! And, often, it's one of these offers you lose out to (for a top dollar motivated seller), not a cash offer (the fastest close motivated seller would accept a lower cash offer that can close in 7 days - and not even respond to your offer).

I can't offer commentary on why one particular offer of yours wasn't accepted, no crystal ball over here, and I'm also not commenting on any specific listing agent, all I can do is confirm for you that I'm not out of business, ergo the majority of these "cash offers over asking" are fictitious creations of listing agents representing the best interests of their seller clients.