How To Be A Cash Buyer With No Money Of Your Own
Everybody knows that "cash is king" and that cash buyers have an edge in the real estate market.
If you are planning on buying a home in Tallahassee in the coming months and you know you'll need to borrow money, does this mean you have to be at a disadvantage to the fortunate buyers who are currently paying cash?
Well, not if you know how to be a cash buyer with little or no money of your own!
Why Cash Is King In Real Estate
They say that cash is king in real estate, but have you ever wondered why?
In order to understand this phenomenon, where a seller will take a lower price from one buyer than he could have received from another, you first have to consider the motives of most home sellers. What exactly do they want?
When I first started in real estate 25 years ago, I thought home sellers all wanted the most amount of money they could get for their home, delivered in the minimum amount of time.
But I was wrong.
Home sellers are people who have their own unique set of circumstances that drive their motivation to sell a home. Sure, the majority prefer "more money" to "less money," but money is rarely the top motivating reason for a sale.
A cash buyer represents a stronger buyer to most sellers because there are fewer people involved who can "screw up the deal." If a seller says yes to a cash buyer, there isn't a lender that's going to come in and kill the sale because of something the buyer did in the past. There isn't likely to be an appraiser who's going to require a new roof or modifications to the home's wiring. And there won't be somebody's else's opinion that will require the buyer to walk away from the purchase. Simply put, a buyer with cash is making a stronger offer than somebody who requires the approval of another.
How To Approach Sellers As A Cash Buyer
So understanding the seller's motivation is the first step to getting the best deal when buying a home. We know that the home seller does not really care who's money comes to the closing table, the seller merely wants the strongest assurance that it will arrive on time, as agreed upon in the contract.
Buyers have tried in the past to include "pre-qualification" or "pre-approval" letters from lenders in order to reduce the concern about funds, but these letters are not binding and thus are worthless. Why? Because the buyer has yet to go through an underwriting process with a lender to determine their true capability to borrow the funds.
Wouldn't it be great if a buyer could go to a mortgage provider and get fully qualified for a loan, to include full underwriting, so that money would no longer be an issue? Wouldn't that provide the exact same benefit to a seller as the seller would receive from a cash buyer?
Well, we have found a lender who will do just that. They will take you through a full loan application and put you in the exact same position as a cash buyer. Be able to close after going through your due-diligence, no need to wait for the loan application process, as it will already be completed!
Use a "TBD" loan to give home sellers what they want. Cash! And a fast closing date.
Get fully underwritten approval before you go to contract. This means that your loan is only conditional on your inspection and appraisal. Let us show you how!
If you have read this article and think that this is "no big deal," then I simply apologize for my poor communication skills.
This is a game changer.
The TBD Loan will make fast closings an option, so buyers who are financing their purchase will now be able to explore the entire market. Distressed properties where banks just want out ... no problem, let's close next week!
There are so many situations where being a cash buyer has benefits, and this loan program brings those benefits to people who are willing to use a smarter home buying process.
Want to know more? Either fill the form out above or drop me a note and we'll get in touch with you right away. Welcome to the world of being a cash buyer in real estate!