Quote from @Erik Browning:
Hey @Joel Case it's likely not you as they buyer/investor that is the issue, or that you are getting beat by all cash offers - it's the agent representing you.
Older and more seasoned agents routinely were told that VA loans are not good loans because it requires them to do slightly more work. Specifically, the home has to pass and remedy (if any) active pest infestations. Additionally, these old guard agents don't like that the VA loan has an amendatory clause, which give you the right of pulling out of the deal - a contingency if you will.
There is A TON of misinformation regarding the VA loan, "it's more expensive, there are extra fees, appraisals are more strict." None of this is true. While fees are different than conventional, it is absolutely not more expensive (I'll show a chart below to demonstrate this) and VA loans get the best interest rates, no PMI, and best of all: 0% down payment.
If your agent is not winning you deals, it's because they are doing a bad job at seeking out information that serves the seller's interest. If the seller is only interested in 10 day cash closings - then maybe that home is not the best fit for you. Perhaps find homes where the seller is looking for a rent-back or the highest purchase price. Having an all-cash hard money loan is substantially more expensive and when you go to refinance, your loan will likely be 10's of thousands of dollars more than what the home is worth - don't do it. Get a new agent and have a discussion with them about finding the seller's motivation. THIS POST summarizes a conversation with an agent I had once.
Depending on where you are, I can recommend an agent that is an advocate for veterans and has a successful record of getting vets into homes.
Conventional vs. VA loan chart as promised (pay attention to Cash Required and Gain On Sale rows):
I read through your thread when you posted actually. I instructed my agent to find the seller's motivation and work towards that, she stated they didn't need any leaseback but I also feel that she may have done the bare minimum as I told her to find the seller's motivation and let them know that we would be accomodating to whatever it was they needed as we can be as flexible as we need to be.
I have reached out to my lender to see if a fully underwritten pre-approval is an option after doing some research on my own. That should put me in a similar situation to a cash offer aside from inspection and appraisal.
Quote from @Eunice Villarroel:
Hard money loans require 20%-25% down payment depending on lender. Totally out of your budget unfortunately.
I recommend you find a good realtor. Here are some things I’ve done to help me get my buyers accepted in the tough south Florida market that may help you too. You can sweeten the deal by offering a little more money (above ask offer) to seller, write a personal letter (about yourself, family, why you want the house etc.) to seller and attach to offer. As a real estate agent I’ve done that and it works sometimes. I’ve also gone straight to meet with sellers and just introduce myself and ask them about their goals to see if I can include terms into contract that would benefit them. Example- had a buyer that really wanted to buy a certain house. I drove by to see owners made friends and found out they wanted a certain amount of time to move after closing. My buyer and I wrote in an offer that gave them 20 days after closing to move out and I pitched in part of my commission to cover their moving costs. Offer accepted. Hope this helps :)
Thanks for that, the down payment would take me some time to come up with, so I will stick with the VA loan. I am going to write a letter in the future and try for an emotional appeal. I am also going to attempt to meet with the sellers and see how I can facilitate an easy sell for them.
