Investing Etiquette - "Cash Buyer"

[Timothy W.]

There are times when you are going to want to make offers as a "cash buyer". A "cash buyer" provides an expectation to a seller that you as the buyer should be prepared to deliver. Being a cash buyer means one of two things.

1. You have cash.
2. You already have private or hard money financing or a line of credit in place to buy for cash.

That's it. It does not mean you troll for leads and then ask the seller to seller finance or provide you with their financing leads or private lending contacts because you don't have your own financing set up. That kind of behavior is not "creative financing". It is bad investing etiquette. If you want creative financing, do not claim "Cash Buyer". A "Cash Buyer" is just about the most uncreative form of financing there is and it is why true cash buyer's get premium pricing.

[Timothy W.]

100% Steve. I'm not kidding, I had a "Cash Buyer" today ask me for my rolodex of private lenders - explaining to me that if I provided them the financing, they could buy my properties and it would be a "strategic relationship" for me. I provided them a strategic middle finger.