WWhat’s the advantage of buying with all cash?
For my first investment out of state...
Originally I wanted to finance multiple homes but I feel I can get a better deal by offering an all cash offer. I can always refi up to 75% after I get the home and reuse the 75% on another home. Is this a good strategy to find a good deal?
Will sellers take less then there asking price if you have cash?
I’d appreciate your thoughts and help.
Thank you
Cesar
Would any one here take out a HELOC on their own paid for home and use the proceeds to purchase another rental property for cash? The new property would be placed in a S Corporation.
#4 All Forums Contributor
- Plymouth, MI
Originally posted by @Lasandra Sutherland:@Joe Villeneuve if you don’t mind, I’m going to dm you. I have more questions about option 2b.
Go ahead
@Joe Villeneuve
If your young and if you do your homework and buy smartly, Joes plan is tremendous.
I can not steer enough that you must do the homework and buy smartly.
Just buying retail deals at market pricing will not accomplish the goals of Joes plan.
Good luck!
#4 All Forums Contributor
- Plymouth, MI
Originally posted by @Richard Weinberg:@Joe Villeneuve
If your young and if you do your homework and buy smartly, Joes plan is tremendous.
I can not steer enough that you must do the homework and buy smartly.
Just buying retail deals at market pricing will not accomplish the goals of Joes plan.
Good luck!
Why not?
@Cesar Perini
As being a broker and also buying all my flip properties all cash, this is my experience.
-you can close in 1/3 of the time and that gives an advantage over other offers
-you avoid having a bank breathing down your neck
-you don’t have to deal with and pay for appraisal or lenders title policy
-you can sometimes get a better deal but in a hot market it doesn’t really help. Buyers look at the bottom line, since they will be getting the full amount at closing anyways
That being said, it's good for refinancing or selling it quick. Otherwise your COC return is pretty low.
@Cesar Perini
Depends what price point you are buying. In my market most homes that cash flow is sold to cash or hard money buyers. However I agree with others. Cash buyers usually is a safer bet if they aren’t asking for unusual concessions.