Property Owner wants ALL CASH OFFER. Why?

Question

I see that some properties in my area (Bronx, NY) are listed as ALL CASH OFFERS ONLY! Why would the owner care where the funds come from?

Ceasar Rosas · Answer

Hi David,

There can be plenty of reasons an owner requests all cash offers. The most common reasons that I've encountered are:

1. Banks will not finance the property. Sometimes there is extensive work that needs to be done. They may not want to deal or are unaware of renovation loans. Sometimes it can be to much work for most banks to finance.

2. They have difficult tenants. If tenants don't open doors, most banks can't appraise and therefore can't do the loan.

3. CO or violation issues.

Etc.....

I've seen other instances as well, but those are the most common that I have run into.

Robin Wilk · Answer

If these deals are on Craigslist you're looking at more than likely wholesalers in the area that are looking for cash buyers by listing the contracted property they have. Another scenario to consider is the owner may have been involved with a wholesaler and that wholesaler wasn't prepared to buy his house (the wholesaler didn't have a cash buyer lined up) so the deal fell through.

Evelyn Roper · Answer

They want to close quickly and the property won't qualify for conventional financing. The houses are usually below market value for the same reasons.

Russell Brazil · Answer

Likely the property will not be eligible for financing due to condition.

David Maurer · Answer

I would like to thank both of you for offering your knowledge on this topic.

Property Owner wants ALL CASH OFFER. Why?

Property Owner wants ALL CASH OFFER. Why?

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