I have been speaking with a lot of investors lately that have asked me how to articulate their offer when using hard money. Can I call it a cash offer or is doing so deceptive even if I have a proof of funds letter. I think it comes down to education and how much the seller's rep knows about hard money. It's a very competitive landscape out there and investors want to make their offer look as sweet as possible.
INVESTORS, what do you put in your offer when using hard money?
@Matthew Jordan it is not a cash offer. HML is still financing, but you can mark OTHER and write in HARD MONEY. As long as the selling agent understands what HM is, they know it works like can't be isn't considered a cash offer. If they don't understand what it is, let your lender educate them.
@Matthew Jordan , whether Hard or Easy loaned Money, "cash Offer" doesn't need to mean that you've saved up all the money yourself in advance. But, it does mean that you're promising to close when the Seller wants (within reason), and, there can be zero financing contingencies in the Offer.
So my question is: how sure are you that your Hard Money Lender will come through with the goods (especially if they don't like the deal you're submitting)?
ie. How good is your "proof of funds" letter?
ie. Many aren't worth the paper they're written on.
Please don't end up being a "wannabe" investor.
Sorry I'm not answering your question positively; it's just that there are too many folk out there that do encourage the sort of deception that you say you want to avoid. Good luck...
@Brent Coombs Thank you for your thoughts, I think this is very helpful. If you're an investor that can close with cash should your HML fail you, can you still write a cash offer even though you intend to use hard money?
@Matthew Jordan those are the magic words "if you can close with cash". Yup.