Cash vs. Financed Buyers

[Robert Burns]

Is there an additional incentive, ie a reduced MPP for cash buyers vs. buyers using financing for deals? I am working on a wholesale deal right now and am considering offering a lower price for a property because I have a cash buyer who can close quickly.

[Brian Levredge]

In my experience, yes there is. I purchase REO's with cash and because of the way I structure the offer, I can negotiate a lower purchase price than otherwise. If you are wholesaling, ideally you want to be dealing primarily with cash buyers, and at worst, buyers that utilize HML's for their purchases. Dealing with conventional financing can take a fair amount of time to close (even longer if it's FHA) and there is always the risk that the deal falls apart because of the financing. The price should reflect that if that's the case.