What Is Meant By Offering "all Cash" Or Making A "cash Offer"
maybe i'm missing something but what is meant when someone makes a "all cash" offer? Im under the impression that any offer is a "cash" offer since one would have to have a financing lined up by closing. Is it just implying that at closing I'd hand someone a cashiers check for the amount due?
Cash offers do not have the financing contingency in the purchase contract.
Actually I had the same question. Could you expand on that a little further, nbhomes? How does taking out the financing contingency change the fact that cash is always changing hands in most sales?
LOL... yes that absolutely makes sense. So when I see all these investors advertising "WE BUY HOUSES... CASH!!!" is that what they are implying?
The we buy houses for Cash guys are saying they will buy your home - usually for quite a bit of a discount -70% of FMV or less - and have cash themselves or more than likely private lenders or bank lines of credit lined up that they can quickly get cash to buy your home.
2 books that i recently read, encourages you to do those exact signs "WE BUY HOUSES CASH!". In fact both books imply that everything you advertise (business cards, flyers, websites) should all say "we buy houses cash quick"
the idea behind the we buy houses cash is that 1) you get the house at a discount rate (70-80%) and you get it under contract without the contingency of getting a loan.
Once you have it under contract, even if you don't have the funds or ability to get the loan, you could always wholesale it to another investor who has cash easily available.
So i guess the moral of the story is: Do offer "cash offers" even if you dont' have the cash. Because you'll probably get a nice discount and you can then flip it to someone else for 10% less and profit $5k - $10k.
If i'm wrong, please jump in and correct me. I'm only passing on what i've been reading about.
empirefg, check your local paper under Real Estate Wanted or your Nickel Ads, there should be several listings in there, usually on Sundays. If not, which I would be totally surprised - depending on your area - go drive the main streets of older, lower middle class neighborhoods and you will usually find them there.
Empire, I also forgot to say, if you still can't find any - GET SOME SIGNS MADE!