Cash Buyer Vs. Pre-approved Fianancing - Price?
I wanted to see if anyone had experience with how REO or short sale properties are handled by the banks. Specifically, are you seeing banks willing to take less if you offer cash then traditional financing with a large down payment? If so, how much less percentage wise (if you know)?
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Well it depends, of course on lots of variables.
Around here the SFR foreclosure business is mostly Freddie and Fannie. Their discount structure is tied to time, not terms, since almost everything is selling for either cash or hard mortgage commitments.
3-5% discounts in first 30 days. Another 5% to 10% in next 30 days. After 90 days anything is possible.
Mark
[ Edited by commercialking on Date 05/05/2012 ]
Have you performed an analysis of the cash flow yet?
http://www.propbot.com/modules.php?name=Tools&op=ProForma