Cash Buyers?

[Account Closed]

I was wondering why exactly does a wholesaler need a cash buyer. What if somebody wanted a loan from a bank to purchase the property?

[Lee Arnold]

I'm no expert here, but I'll take a stab at an answer. When you are wholesaling a property the point is to get it locked up in contract, find a buyer that can close quick and then get the buyer and seller together. Most sellers are motivated to move quickly and that means cash is king. 

Let me give you a scenario, You or someone in your family becomes ill and passes...(hope this doesn't happen) and a member of the family inherits their home that is three states away.  You can't afford to get the house into rent worthy condition and decide to sell it. You need to get it gone fast because if you don't you will have to pay the taxes on the property and you can't afford it. As a whole-seller I come along and help you get out of that situation by finding the buyer that can pay cash and provide you with your exit strategy. If you have to wait for me to get financing as a buyer there is an increased risk of you having to pay for the taxes yourself and that could make your financial situation worse. 

There are other options out there to get the deal done but cash buyers are usually the fastest way to close on a property and as a wholesaler we tell the sellers that we can usually close fast. 

Hope that helped and if anyone wants to add or take away feel free.