Investor · Central Valley, CA · Member since 2012 · 6k+ posts · 3k+ votes
12y
There is A LOT of cash out there right now. It's a different world from when I started in late 1990s. Back then cash offers were often really hard money loans from a limited buyer pool. Today I'm able to sell almost everything for cash. Even in the $150-200K range.
The yellow letters you are looking at are used by a lot of wholesalers. They don't use their own cash, but that of their end buyers. So no, not everyone has bigger pockets.
That being said, I think the cash offer message is overused to the point where sellers don't even notice it anymore. I don't focus on cash offers in my marketing. I focus on identifying and targeting problems I can solve. The majority of people I buy from don't need cash as much as they need someone to take the reins, solve what they perceive as insurmountable problems and walk the sellers through getting it sold.
Flipper/Rehabber · Arlington, TX · Member since 2013 · 1k+ posts · 2k+ votes
12y
As I suspected, we are actually in complete agreement on that.
And Michael I also understand your underlying issue - many cases where a "wholesaler" gets a property under contract and has NO CLUE how they will consummate the deal. Often, they think they can get hard money, then find out that - oh, you actually have to have a great credit score and significant cash reserves to get hard money! Then they just POST IT ON CRAIGSLIST and say a prayer. Meanwhile, the seller thinks they have sold their house when there is low chance of actually going to closing. I get that. I'm not as hard-headed as I came off. ;)
Real estate investor · Las Vegas · Member since 2013 · 798 posts · 171 votes
12y
Cash (HELOC, money, funds already available) is different than any kind of pre-approved BS. Banks and other sellers that do volume usually realize that advantage. Everyone that has had a deal fall apart and then have to re-list a place that was tied up for while understands the importance of cash. If you do not already have the funds available, it is irresponsible to advertise cash bc your offer is not the same as someone that close right away, w/o needing an apprasial or needing to depend on other outside parties.
Making an offer with a line of credit that is already established and set-up (check-book type line of credit with funds available) is also considered a "cash" offer.
Yes, definitely, wasn't claiming otherwise. The source of the cash isn't the issue, the lack of contingencies is.