Quote from @Benton Potts:
Quote from @Ray Hage:
@Tim J. said it best. You can buy it in cash and then re-fi out of it afterwards. It will cost slightly more that way but if you are in a cash-competitive market, it's not a bad idea to buy in cash initially. You can easily do a conventional investor or DSCR loan right after.
I'm in a situation where I am going to have a lot of cash by the end of the year and my strategy as an Agent/Investor was going to be buying all cash and buying below market value and then immediately refinancing out but was told by several banks yesterday that by doing this I would have to wait 6 months before i could get a conventional investor mortgage on the property, Is this true?
Ok, let me explain this with a little story.
Back in the day, ~2011/12 when everyone was jumping on the band wagon of trying to get a deal, claiming they had the bigger offer, I would tell people I GUARANTEE I would bring them the BIGGEST check of ANYONE, and if I didn't I'd give em a free steak dinner for whole family just for hearing me out.
I'd pull up, and pull out from back seat of car my 3'x9' tri-fold check. Lol. I kid you not. Knock on door, say the hi's and just ignor the fact I have this giant thing in my arm, as everyone looks. Come in, sit down, start talking, again ignoring this giant thing. Until finally I said, "oh, and yeah, ok, I guess maybe wondering on this". Where I would say, I promised the BIGGEST check and, as i open it up and plop it down on table pulling out my pen to sign I say "true to my word, the BIGGEST check, right" as I look to get confirmation that it is, in fact, the BIGGEST check.
And I used this to break the ice but also emphasis the fact that all that jazz is just BS marketing, because it is. And I'd tell them that, everyone pandering for their buy, it's just that, BS marketing to get them to sell to em, and that I am a horrible liar, that this is as jazzy as it get's and I just won't play the games. I work in win-wins. My word is titanium, I mean what I say and I get things done, full stop. So if they want to work with someone REAL, no BS, then we can make something work. If they want BS slogans, catch phrases and jazz, it's just not me, good luck, see ya bye.
In all the years I did these, I lost 1 seller to being scalped, 1.
People get it, they see the BS through it all, there simply not that dumb.
ALL offers are CASH offer at closing. People DON'T care how you get the cash to closing, that's your problem not there's. Why do agents say they prefer conventional over FHA? The inspection, nobody cares where the bank wire comes from, it's about TERMS.
TERMS are what matter, nobody is going to hand you a discount and sell UNDER market value because you said the word CASH. That's a feeble venture to attempt.
People WILL discount for favorable terms, which isn't a discount then is it, it's a TRADE.
