Would an investor procure million(s) cash in order to close on a great deal?
If I got a great deal under contract for a cash purchase, but the purchase price is $1,000,000+, would the investor I'm looking to assign a contract to be willing or go through the effort of putting together $1M+ in order to close on a cash purchase? I realize the larger the asking amount for a cash transaction, the smaller the pool of buyers theoretically. But I'm not sure if that really has too big of an impact.
I want to wholesale less deals for larger assignments. Logically I would need to wholesale larger size projects in order to pull that off. Any wholesalers here that have this kind of strategy and could help shed some light?
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@Arsh M.
Lots of $ out there $1M is not a lot of $ today for real estate and plenty people out there have it or could get it
Quote from @Chris Seveney:But one could argue the deal is worth less if it requires the investor to tie up 1M for cash purchase when it could be borrowed instead, no? Though they’d be making more cash flow without principal and interest payments to worry about
@Arsh M.
Lots of $ out there $1M is not a lot of $ today for real estate and plenty people out there have it or could get it
am I right or wrong with that consideration?
@Arsh M. - you source me a $1 Million plus deal and I would be happy to give you a hefty assignment. I'm in CT but if you do it for me, stay out of Bridgeport, Hartford, and Waterbury. I don't want to own in war zones.
Quote from @Samuel Eddinger:What’s your buy box? Exit strategy/ goal?
@Arsh M. - you source me a $1 Million plus deal and I would be happy to give you a hefty assignment. I'm in CT but if you do it for me, stay out of Bridgeport, Hartford, and Waterbury. I don't want to own in war zones.
Quote from @Arsh M.:
Quote from @Samuel Eddinger:What’s your buy box? Exit strategy/ goal?
@Arsh M. - you source me a $1 Million plus deal and I would be happy to give you a hefty assignment. I'm in CT but if you do it for me, stay out of Bridgeport, Hartford, and Waterbury. I don't want to own in war zones.
I don't have an exit strategy. Most wealthy investors hold forever. I'm looking for big apartment buildings in central CT, excluding Hartford and Waterbury. I'd also buy mixed use if the majority use is apartments.
Quote from @Arsh M.:
Quote from @Chris Seveney:But one could argue the deal is worth less if it requires the investor to tie up 1M for cash purchase when it could be borrowed instead, no? Though they’d be making more cash flow without principal and interest payments to worry about
@Arsh M.
Lots of $ out there $1M is not a lot of $ today for real estate and plenty people out there have it or could get it
am I right or wrong with that consideration?
Why do they have to buy in cash? Tons of wholesale purchases, arguably the majority, are financed.
Investors around here do deals in that price range all the time. A friend of mine just picked up a $1.6M residential deal last week "cash"
I say "cash" because he probably put up ~$500k of his own personal capital. And the remaining $1.1M comes in the form of private equity or hard money. These groups are as good as cash though. They'll fund a multi million dollar deal in 24 hrs for experienced developers.