What's the meaning of cash?

3 Replies

Hi Everyone,

I always hear about cash transaction, but also hear about investment products associated with them. 

Can someone explain what the meaning of "cash" means in real estate? 

This question might sound obvious, but  this is for investors  (including my self) who legit think they need to raise all that cash on their own or in general to compete with others in the market.

Thank you,


@Felix Torres cash literally means cash... unless it means hard money. There is even a spot in the contract we use in the Chicago area for us to put down a cash offer.... or a cash offer "with mortgage" (i.e. hard money). Essentially, when you offer cash + mortgage you won't have a financing contingency so the seller can typically close as fast as cash. 

@Felix Torres

Yes, with cash purchases - and the use of delayed financing and a cash out mortgage, you will need to use cash - and your cash only.

The source of funds for the purchase transaction must be documented (bank statements, personal loan documents, HELOC on another property). Any loans used as the source for the purchase transaction will be required to be repaid on the new HUD-1.

List, Screen, Lease, Get Paid, Manage.
No Better Place to Lease Your Place
Owners rely on the #1 rental site to get the best results from their rental properties.
Get Started Now

@Felix Torres Cash means that your offer isn't dependent on being approved for a loan.  Either you have the cash & can proof it or someone  (potentially a private lender) or entity (hard money lender) has the cash.  If its not your cash then the 3rd party must provide evidence they have the cash to close & they have a relationship with you.