Hi BPers- I'm a newbie to real estate and BP. My husband and I owned our home in California and have been thinking of investing in SFH in Arlington, TX (out of state investor). We have been procrastinating but the Webiner by Brandon yesterday really encouraged us and trying to take an action.
Our strategy would be focusing on cash flow and buy-hold for mid-long term. We see couple properties with FSBO (cash only so we are thinking of buying with cash and re-finance to pay back to the whatever the initial money resources) but not sure how to go from here... Any suggestion? (the owner says no realtor/wholesaler so I'm not sure if we still can engage with an agent)
What I see most often with FSBOs is that they are over priced, so you have to watch out for that. Normally it seems about 10% too high, but of course every case is different. You can always pay your own agent if you think the deal is really too good to pass up and you still want representation. One idea is that you might offer cash and be ready to close with cash, but try to use financing if that is really what you want to do and finance it before you close. Choose a lender that closes on time, so that you don't waste money on an appraisal you can't use.
@Bruce Lynn thanks for the advice- when you say "but try to use financing if that is really what you want to do and finance it before you close," does that mean you can put an offer as cash but still finance it before the close date (as long as the lender is able to wire the $$)????
It has happened before...I don't think you should do this if you can't close with cash....but if you can close with cash, but prefer to use financing, then yes you could do this.....make the offer with cash, but close with financing. it's the same bottom line to a seller. There is some risk to that strategy of course and we could talk you through that, but in this market there are people who do that. Also nice to let the seller know that is your intention as well, so they are not surprised by an appraiser or if the lender requires changes to the contract.