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Matt Schelberg
  • Rental Property Investor
  • Baltimore, MD
257
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281
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Cash vs. Financing for REOs

Matt Schelberg
  • Rental Property Investor
  • Baltimore, MD
Posted

If I make a cash offer for an REO, does that prevent me from getting financing from a bank prior to closing? Up until now I've always purchased with cash and then re-financed once my property is renovated and rented. But I'd like to avoid the extra closing costs this requires.

My plan is to offer cash for an REO, show my proof of funds, and then attempt to obtain financing before closing. If financing doesn't work out, I would close with cash.

Any flaws to this strategy?  Thanks!

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