Who's a Cash Buyer and who's a "Cash Buyer"

[James Danchus]

BP,

I got a quick question regarding cash buyers. 

So I was cold calling CL ads today to network with cash buyers. I got a guy on the phone, we spoke about how many properties he has, what he likes to buy ect. ect.. So I ask him how long it generally takes him to close, and he says he can get $1mil from the bank with one phone call.

My question is, is this guy a real cash buyer, as people in this business talk about them? Generally, I've thought cash buyers were people who could cut a check for you right then and there. Should I keep him on my buyers list? Has anyone done deals with buyers like this?   

[Teresa F.]

Hi James -- Rarely do "cash" buyers have cash sitting around in their savings account -- in my market you would generally have to have a few hundred thousands which isn't going to happen. So many "cash" buyers have commercial lines of credit, Home Equity Lines of Credit (HELOC), even credit cards with significant lines that allow them to convert money into cash quickly. May want to ask what type of line he has but you want to keep him on your list. Hope that helps. Teresa