Do you need cash to get a good deal on a flip?

Question

I am hoping a few people will weigh in on this question as I haven't found much in my forum searches on this trade off. I am thinking about selling my primary res and purchasing a distressed property to do a live-in flip over a two year period, rinse, and repeat. Am I going to have to bring cash to the negotiating table in order to find a great deal?

Seems like all the motivated seller marketing strategies I see center around closing fast with cash. Is an FHA 203(k) approach going to eliminate the best prospects right out of the gate or has anyone had success with this option?

Adam Bartomeo · Answer

It depends on who your buyer is. If it is on market you will have a harder time then you would if it was off market. The reason is because a property that is on the MLS will have a lot more competition even if it a fixer you will have other investors. I had buyers offer me more then the asking price on a property that I sold recently but took the lesser offer because it was cash and had a higher probability of closing.

Off market may take whatever you offer them since you are really helping them out and getting them out of a bind.

Do you need cash to get a good deal on a flip?

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