I have been trying to lock up my first deal I don’t tampa, FL but I keep getting beat by cash buyers. Is there anything I can add to my contract or offer to beat out the competition? What have you offered to beat out competition?
The first thing you need to do is line up some cash or some bridge lending. And be willing to take the deal fast even if the math it's not 100% on the rehab. Why because you need to move fast try offering closing in a week or in a few days it's all about speed and calculated risk. It's all about numbers if this one fails the next one won't. As well as you do a rental stress test and so the worst thing that could happen is that you rent the property long-term.
Also, be ideal if you could pick up properties that have repairs so you feel comfortable fixing yourself even better in case you go over budget. Rent or flip but do not stop.
Last but not least, I never believe building relationships with sellers will work, but my staff has proved me wrong with time. This is also an excellent strategy to listen to them understand their pain and help them long-term. They will remember you and come back to you for their friends and families in the same position.
A higher our purchase price.
Very short inspection period, large deposit, quick close. Besides that, it’s tough. There’s a reason why they say cash is King.
Hello Anthony Carrasquillo, you can do all that was mentioned above and you may be forced to buy the property that no one wants...like the "fire damaged house" I found in Plant City last month. Or the one out in the middle of nowhere in farm country near Lakeland. Or just start with a Manufactured Home or Trailer if you don't have enough Down for a House. Learn how to use Zillow or the MLS for Searches. Watch the Flip n Flop show on TV for examples of buying the worst property they could find and turning it into a show. Flipping Vegas or the Zombie Florida House show to see all the mistakes and frustrations. Pay attention to all their outdated numbers and they never give you after Tax profit. As
If the "cash buyers" are offering less, offer a high non-refundable EMD. If they're offering the same or more you're not being beat out by "cash buyers" you're being beat out by buyers offering more, simply make a higher offer. If the numbers don't work at a higher offer you're either competing against new investors, Better investors< or most likely owner occupants.
Anthony, I was where you are at first. Closing fast is the key. That's why cash buyers can beat you out even if they are offering the same or even a little less This option is a little expensive but try developing a relationship with a local hard money lender. They don't go through a weeks long approval process. If you can find someone who will approve you in a couple of days just act like a cash buyer. If your hard money lender let's you down you will lose your ernest money so be careful. But this will let you get started. Eventually the hard money lender will give you better rates and eventually you will have the cash. You could also partner with someone who does have the cash. You would be surprised who has a lot of money. Good luck.
Do you have an investor one-sheet on yourself and your company or your investment business?
Are you explaining in the offers why you are using a mortgage as a vehicle? If you explain why you are using an FHA to say, househack, it comes across better, especially if you show a proof of funds as well, with your financing paperwork.
As others have said, you need to be offering substantially more than the cash to make it worth it for them to "risk" it on a loan.
Have you been pre-underwritten by your lender? If so, that's much better than a pre-approval.