If they are only accepting cash, you would need to ask yourself (or better yet ask them) why. Maybe the deal is overpriced and won't appraise. If everything checks out, you can get delayed financing and pull most of your cash back out.
Originally posted by @Barry Je :
One turnkey is requiring investors finance deals all cash. I can do this but I want to leverage my money.
What are people’s thoughts about buying for cash outright and then getting a mortgage to free up money to do more deals?
If you have to pay cash only there is a reason for it. The following are common reasons one needs to pay all cash.
1. The property is distressed & needs heavy repairs. As it sits right now it will not qualify for a loan.
2. The deal is so good that there are multiple offers on it & you'll need a cash offer to beat out the competition.
3. (This is the scary one) The seller knows the property won't appraise for the purchase price. This is something an out of state investor needs to look out for. Things like this lead to all of those turnkey nightmare stories.
I wrote this post this morning it could help you
the reason some turn keys sell for cash other than the reasons @James Wise stated are
1. they can sell cheaper since they have no holding costs.. remember 99% of turn key companies borrow money to buy and rehab the house this cost is added to the purchase price so any home that you buy turn key off of MLS new construction does not matter everyone is adding in holding costs so they don't lose money..
2. market is hot enough that the turn key operator does not want to fool with the time and effort it takes to do loans.. they can be quite frustrating and take much longer than anticipated thereby causing the turnkey company additional holding time which of course is money to them.. not uncommon for lenders in the space to take 90 days for example.
3. you get a better deal.. not always are you paying more.
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