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Of course the person you were responding to was wrong and people aren't bringing suitcases full of dollar bills to a real estate closing.
But I've also never heard of anyone paying with a personal check. Bank checks and certified checks, and now, most often, wire transfers. But I can't imagine anyone accepting a personal check for a real estate transaction when there's no way of knowing whether it will clear.
When I sold my last house to a "cash" buyer, that meant seeing proof of funds before accepting the offer, and then for the closing, he wire transferred the money to the title company who then paid off the mortgage and wire transferred the balance into my bank account.
When I bought our farm, in 2005, it was the easiest transaction I had ever done. The seller offered to meet me at the courthouse to transfer the deed, he even offered to pay the $4 filing fee out of his pocket. I refused his offer and I insisted on hiring a lawyer. I found a 'land transaction' attorney nearby who did the title search/insurance and filed a new deed for a $200 flat fee. I gave the attorney a personal check and a week later I was given a copy of my new deed. As it turns out the seller had won the property in a card game.
With the property I purchased in 2016, there was the seller, the seller's agent, a buyers agent and the title company all with fingers in the pie. At the closing the title company rep brought all the papers and forms, there were stacks of forms to be reviewed and signed [just as there were with the first four homes I owned], I gave her a personal check and nobody objected.
I could have gotten a cashier check if that was what they wanted.
In this rural area, people seem a bit more laid back.
I worked in a bank. There's a huge difference between "checks" and "cash". He said "cash". So that's what I called him on.
When I pay for my property, I'll be paying with a cashier's check. To me, even that is not cash.
And by the way, yes, I do know several DEA agents.
For my first four properties, I did not have the money up front. I had to get mortgages to buy them. So at the closing, I only had to pay the amount specified by the bank and title company.
For the last two properties that I have bought, I had the money in a bank account. There was no need for a mortgage.
11 million renters spend at least half their income on shelter. They're all foolish?
I think you steered MrRational's response when you said "renters who spend too much." That would imply a poor decision. Had you said renters with no other choice but to pay a lot of money, that would be different. Saying "too much" implies there are better or more rational choices available. Perhaps I'm inferring too much here.
Saying "too much" implies there are better or more rational choices available.
There are always better choices (less expensive housing in this discussion) available.
Actually exercising them? That requires making other better or more rational choices.
Most critically it requires moving a low income life away from a high COL area.
Actually, buying a house usually is cheaper than rent, as long as the buyer doesn't allow a realtor to talk them into "the best house they can afford". There are plenty of houses in my neighborhood with much lower monthly payments than rent.
And once the house is paid off, it's super cheap compared to rent.
This is highly dependent on the state. Here in no it will never be cheap, my taxes will go up and up and most likely will eclipse what I paid in rent.
I worked in a bank. There's a huge difference between "checks" and "cash". He said "cash". So that's what I called him on.
So when you see headlines like this:
Apple's cash hoard swells to record $256.8 billion
43% of 2014 home buyers paid all cash
Dodging taxes isn't the only reason the rich stash cash offshore
The Role of Cash in your Portfolio - Schwab Intelligent Portfolios
You imagine:
1. Apple having a massive vault somewhere filled with money, with maybe a dragon sitting on top of it
2. 43% of homebuyers showing up at their closing with a wheelbarrow full of money
3. Rich people checking luggage full of $20 bills on their trip to the Caymans for deposit
4. Schwab recommending you go 50% stocks, 40% bonds, and 10% rolls of quarters buried in back yard
I am an 18 year renter turned homeowner and have told OP my story (my monthly home payment including taxes and insurance are more than double what my rent was, for a relatively inexpensive home (100k) plus we need a new roof in the next 5 years, so add $10,000, and we will also need a new septic system, add another $10,000+. Property taxes of course rise every year, so my monthly payment is going to go up and up as years go by.
OP seems to think my situation doesn't count, even though it's an example of expenses changing as I went from renter to homeowner.
It must be a Jersey thing.
I dont see how people can say house payments stay the same but rent payments go up.
House payments go up to by way of property tax increases....which we can no longer deduct.
For my first four properties, I did not have the money up front. I had to get mortgages to buy them. So at the closing, I only had to pay the amount specified by the bank and title company.
For the last two properties that I have bought, I had the money in a bank account. There was no need for a mortgage.
That was the distinction that I meant.
I apologize for any misunderstanding.
No need to apologize. It's just that after spending 16 1/2 years in banking, 8 of those years as head vault teller taking in cash deposits exclusively, I'm just accustomed to differentiating between cash and anything else. Besides, I think it was StormyandMisty that I was calling out.
Quote:
Originally Posted by lieqiang
So when you see headlines like this:
Apple's cash hoard swells to record $256.8 billion
43% of 2014 home buyers paid all cash
Dodging taxes isn't the only reason the rich stash cash offshore
The Role of Cash in your Portfolio - Schwab Intelligent Portfolios
You imagine:
1. Apple having a massive vault somewhere filled with money, with maybe a dragon sitting on top of it
2. 43% of homebuyers showing up at their closing with a wheelbarrow full of money
3. Rich people checking luggage full of $20 bills on their trip to the Caymans for deposit
4. Schwab recommending you go 50% stocks, 40% bonds, and 10% rolls of quarters buried in back yard
Of course not, but then, I've never heard of anyone using checks to go buy something at McDonald's or Burger King, either.
Quote:
Originally Posted by Tallysmom
Yes, but in real estate jargon an all cash deal means paying for it outright as in no financing. Not bringing all cash.
Well, as someone who only financed a house and never had any other real estate dealings, I didn't know that. So I'm glad to get the info - thanks!
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