Getting HML backed offer accepted in multiple offers situation

[Hanna Parker]

I have submitted offers on a number of properties in Chicago that had multiple offers on them, and in each case, I lost out on the property. I am using a hard money lender to finance the project. While I understand that cash offers are sellers first preference, has anyone had any luck getting a hard money backed offer accepted? Specifically, those in the Chicago area. If so, which lenders have you had the most success w/?

[Eric M.]

Originally posted by @Constance Chambers:

@Hanna Parker any loan that does not use traditional bank mortgage lending is a cash offer. If you have a hard money lender in place, then you are making a cash offer. Your HML is your investor, your realtor should have explained this to you. You may need a realtor to make your offers that understands realestate investing. get to some local REI's in your area to make those connections. Most HML's will be able to close quickley as well, within a few weeks.

No No No. Hard money is not cash. Cash is cash. If you have gotten away with this, good for you but most won't fool anyone. Every realtor I have ever met knows a HML pre-approval letter is as good as toilet paper.

Most HML may be able to close quickly but everyone knows that some HML will not be able to close at all. They are a pain to deal with, which is why sellers do not consider HML cash.

HML offers are much less desirable than cash. Doesn't mean you won't find some sellers who will overlook the difference, but many will notice.