refi? sale? Can you guys-n-gals help me?

Question

So I’ve lost the Majority of my offers to cash buyers. I’ve saved quite a bit but not enough to Start cash bidding. I also have a 2\1 house here in Chattanooga tn. 895 a month rent, mortgage w/escrow is 510. According to my trusted and well decorated agent I could walk away from this house with 35k in hand. This also just happens to be very close if not perfect (depending on house) amount I need to start playing with the big boys on “cash offer”. So I guess what I’m asking is the loan I have now (at 3.5% Interest) be willing to loose that? What other options am I not thinking of. This is my only rental does it make since to sale so I can be a more competitive investor when I want to be a buy and hold guy? Isn’t that Counter intuitive? Or is it logical to loose a less Desirable 2/1 in exchange for a better bidding/offer Strength?

Dan Beaulieu · Answer

Spot On. I always advise my clients to go ahead and make "cash" offers with a 7-10 day closing time. It's all the same to the seller, and local title companies do not care. It makes your offer just as competitive. Also make sure you're seeing some deals from local wholesalers! I usually forward the best ones on to my clients, and there are still some good deals being put out there by them.

Account Closed · Answer

I think you will find that "pre-approvals" from hard money lenders can be fleeting. First it is a question of whose value you will use on the property. Of course it will be the HML's and their numbers will be more conservative than yours so you may have to come up with more money than you planned, secondly depending on the day of the month the HML may have lent out all that they have and be waiting for one to pay off so they can fund yours, it could take a few weeks longer than planned, thirdly the HML can back out at any point for any reason and there is no controlling for that. With private money from a friend/family member you have much more control of the situation. Just sayin'

Joseph Bass · Answer

@Daniel Beaulieu I’ll give that a try!

Jeffrey Holst · Answer

@Joseph Bass I feel like if you have a good relationship with a hard money lender you can offer cash and 10 days closes or whatever. You just need to make sure the lender can turn it around that fast.  Most can. You don't actually need to say this is a cash offer just say I can close in 10 days or whatever with no financing contingency. And then as long as you know your market and your lender you are safe. But make sure you don't over pay and make sure your lender is legit.

Joseph Bass · Answer

Account Closed I have Preapproval from a hard money lender. It’s the arv appraisal that’s making me loose them.

@Heath M. I’ve been considering direct mail, door knocking, cold calls Etc. I’ve actually had the most luck just by telling everyone I know what I want to do. I’ll keep trying but it is starting to Wear me down.

Account Closed · Answer

I'd team up with a private money guy (dad, mom, brother, uncle, friend, doctor, dentist, business owner, etc) who wants more from his money than he's getting now. Let him provide the funds, you provide the expertise. You offer him 2% to 3% more than he is currently getting.

Brant Richardson · Answer

Unless your are trading up to a multifamily property I don't see much point in selling one SFR for another, especially if finding one that is undervalued is unlikely.  Keep saving up cash and keep making officers with financing for now.

Jeffrey Holst · Answer

@Joseph Bass sell or not depending on your goals. But if you have 20-30% down you should be able to get a hard money lender or some other kind of line in place that would allow you to make "cash" offers in my experience very few people actually pay cash they just have access to cash.

Heath M. · Answer

I wouldn't sell.  Chattanooga is crazy right now.  I put offers in on 7-8 and kept losing them too but I finally got one earlier this year.  Just keep plugging away and don't pay too much or move too quick that you don't get a deal or have time to inspect.  Maybe try some off market stuff.  Find an area you like and use the Hamilton County Assessor of Property web site to find out the owner and then get in touch with them that way.  I'm kicking myself for not cold calling an owner of a duplex close to my 4 plex.  It popped up on the market and has been scooped up already...

refi? sale? Can you guys-n-gals help me?

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