cash only buyers (by Tonia [RI]) Jun 23, 2022 10:25 PM
cash only buyers (by Deanna [TX]) Jun 23, 2022 10:33 PM
cash only buyers (by Ken [NY]) Jun 23, 2022 10:34 PM
cash only buyers (by RB [TN]) Jun 23, 2022 10:57 PM
cash only buyers (by Robert J [CA]) Jun 23, 2022 11:20 PM
cash only buyers (by Robert,OntarioCanada [ON]) Jun 23, 2022 11:20 PM
cash only buyers (by Vee [OH]) Jun 23, 2022 11:33 PM
cash only buyers (by MC [PA]) Jun 24, 2022 5:47 AM
cash only buyers (by Roy [AL]) Jun 24, 2022 7:01 AM
cash only buyers (by David [MI]) Jun 24, 2022 9:15 AM
cash only buyers (by Oregon Woodsmoke [ID]) Jun 24, 2022 10:02 AM
cash only buyers (by Ray-N-Pa [PA]) Jun 24, 2022 2:26 PM
cash only buyers (by Tonia [RI]) Jun 24, 2022 4:07 PM
cash only buyers (by Robin [WI]) Jun 25, 2022 7:52 PM
cash only buyers (by Barb [MO]) Jun 25, 2022 8:10 PM
cash only buyers (by Tonia [RI]) Posted on: Jun 23, 2022 10:25 PM Message:
Landlords, stupid question, but do you know why a seller, trying to sell a multi-unit, fully occupied, that is a bit of a fixer upper, for cash only? The owner will not accept bank loans. His asking price is below market at a reduced rate, so I am wondering if there an advantage with cash only for this type of sale.
--71.117.xxx.xx |
cash only buyers (by Deanna [TX]) Posted on: Jun 23, 2022 10:33 PM Message:
Usually cash sales are straightforward, as-is. The seller usually sacrifices top dollar in exchange for a speedy, no-hassle transaction, no worries about inspections or appraisals or values or approvals or whatever. The thing that they're concerned about most is being able to achieve $x out of the transaction to do what they want to do, which is more important to them than getting the full value of an asset worth $y.
--137.118.xx.xxx |
cash only buyers (by Ken [NY]) Posted on: Jun 23, 2022 10:34 PM Message:
Less hassle,more likely to close --74.77.xx.xx |
cash only buyers (by RB [TN]) Posted on: Jun 23, 2022 10:57 PM Message:
Cash purchase:
Less chance to be delayed or fall through. --24.183.xxx.xxx |
cash only buyers (by Robert J [CA]) Posted on: Jun 23, 2022 11:20 PM Message:
To buy a fixer upper with a bank loan means you're going to have to put 50% down. Why? Lenders discount the value by 25% -- for possible vacancy and repairs. SO instead of putting 30% down, it's going to be up to 50%.
Most buyers are so dumb they think with $50,000 debt on their credit cards, late payments on their auto, it's going to be easy to get another mortgage when all of their holdings already have debt, a liability and not an asset.
So if a buyer doesn't have cash to purchase the property, then in the eyes of the seller they are a joke and not serious. --47.156.xx.xx |
cash only buyers (by Robert,OntarioCanada [ON]) Posted on: Jun 23, 2022 11:20 PM Message:
Often get letters in mail where they are offering cash where if wanted to take $100,000 less for house then would foolish to do this. Once a kitchen and bathrooms are renovated then spending $20,000 will increase value $100,00 Cdn. They often do poor work with cheap materials and do not follow building codes. Owning apartment buildings then renovating kitchens and bathrooms then familiar with this sort of work. Going to take kitchen cabinet door to have refinished where the doors are made of solid wood not pressed board. They are interested in a quick flip where will make appearance look nice then nothing will last. --216.110.xxx.xxx |
cash only buyers (by Vee [OH]) Posted on: Jun 23, 2022 11:33 PM Message:
No inspection - contact city or county to review history of building violations, has everything been fixed and signed off by inspectors? --76.190.xxx.xxx |
cash only buyers (by MC [PA]) Posted on: Jun 24, 2022 5:47 AM Message:
It is on their terms, easier to close, less hassle, no waiting for anyone/anything else. --73.230.xxx.xx |
cash only buyers (by Roy [AL]) Posted on: Jun 24, 2022 7:01 AM Message:
My definition of 'true market value' is the cost of what most people would be willing to pay cash for. Like at a housing auction, where only cash buyers can bid, those houses are usually sold at their true market value. --71.207.xxx.x |
cash only buyers (by David [MI]) Posted on: Jun 24, 2022 9:15 AM Message:
if it is fixer upper and rough sale, it may not pass bank appraisal. A lot of agents will mark the condition cashonly after reviewing condition. It is also very common on foreclosures to be marked cash only --50.4.xxx.x |
cash only buyers (by Oregon Woodsmoke [ID]) Posted on: Jun 24, 2022 10:02 AM Message:
If it is a "bit of a fixer" the banks probably won't give a mortgage on it. Banks have criteria they look at like how much life is left in the roof and other things concerning expenses that will come up. Especially in a commercial building where expenses hurt the income and the income is needed to make the mortgage payments. --76.178.xxx.xxx |
cash only buyers (by Ray-N-Pa [PA]) Posted on: Jun 24, 2022 2:26 PM Message:
Or a slight twist to what Smoke said.......it is a Rehab in progress. Banks want the end product --24.101.xxx.xxx |
cash only buyers (by Tonia [RI]) Posted on: Jun 24, 2022 4:07 PM Message:
Thank you, all landlords, for the great insight. --71.117.xxx.xx |
cash only buyers (by Robin [WI]) Posted on: Jun 25, 2022 7:52 PM Message:
One other possibility...multis are valued based on their cap rate, which is derived from rents collected. If they haven't been reporting all of their rental income on their taxes, then banks will lend on the reported income, not the actual income. This results in a much lower appraisal and a smaller loan. --24.1.xx.xx |
cash only buyers (by Barb [MO]) Posted on: Jun 25, 2022 8:10 PM Message:
We did a cash sale a number of years ago on a house with lots of offers. When the “highest and best” call came in, we offered the asking price, but cash. 3 other offers came in higher, but required financing. The house was bank owned, and the bank took the cash offer with proof of funds over any of the higher offers.
Cash offers are a sure thing. --149.76.xxx.xx |
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