This may be a stupid question, but this is something that confuses me a little. I always see wholesalers and investors advertizing that they can close quickly. Why is it that wholesalers and investors can close faster than other buyers? Isn't it the same process? Closing at an attorneys office or title company? What makes the process faster?
@Michael King , it's that they aren't waiting for conventional financing. That bank underwriting can take many weeks.
@Michael King , people who can close fast are cash buyers. The cash is readily available. If the title is clear the closing can be scheduled immediately (usually a couple days.) It is the mortgage process that slows down most transactions. Application, underwriting, appraisal, maybe another appraisal...you are lucky if a closing can be scheduled within 30 days if the buyer is financing through a bank. 45 days or more is not uncommon.
Nah, they have listened to Guru gobbledegook that says to tell sellers you pay all cash and settle quick. This is stupid unless you know the seller actually cares if it settles quickly. Most that say it can't necessarily actually close any faster. That is just what they say because they think it will help get a deal.
Ned Carey, Crab Properties LLC | http://baltimorerealestateinvestingblog.com/
We were able to close a deal in 12 days with a loan because that was the "deal" breaker for the seller. He was moved out and want to buy a house "now" as interest rates at the time were climbing quickly!
On the other hand, I am working on a deal now where the owners are buying a house and do NOT want a fast closing. So it really important to work with your client to meet their needs while you get the best deal.
It's called marketing. Every bandit sign, every ad, states "we pay cash and can close fast". I know investors who don't have two nickels to rub together and they have to borrow a car to get to their day job, but claim they'll pay cash. As "@Ned Carey said, it's guru stuff.
I NEVER want to pay cash unless there's no other option. My cash offers are almost never considered by a seller because I intentionally give the seller better options.
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