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Old 08-16-2013, 10:16 PM
 
118 posts, read 488,156 times
Reputation: 97

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I SWEAR I am not "hating"

I am seriously perplexed... Ive been home shopping recently and been hearing "cash offer"...

My price range is in the modest range...

But I am seriously in awe how some people are able to pay cash for these properties.

How do people make so much money... I mean besides inheritance.. selling their house/real estate... how do people make so much money... ?

Also watching Million Dollar Listing too... they can pay 10MIL CASH!!!??? How do people make and stay rich?


Am I the only one that is constantly asking this question?? lol


Gosh, I hope to pay cash for my next home... but I'll settle for a pretty decent down payment
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Old 08-17-2013, 02:14 AM
 
35,309 posts, read 52,330,579 times
Reputation: 31000
Obviously many people live in a world where money is not a problem,they have any monies to satiate their dreams and desires, How they accrue such fortunes is a mixed bag from inheritances , lottery winners, business owners,investors etc.,
Some how i also missed the lotsa money boat but i dont begrudge people with lots of money spending it or even flaunting it, they got the money through luck or hard work,good for them..
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Old 08-17-2013, 02:52 AM
 
118 posts, read 488,156 times
Reputation: 97
Quote:
Originally Posted by jambo101 View Post
Some how i also missed the lotsa money boat but i dont begrudge people with lots of money spending it or even flaunting it, they got the money through luck or hard work,good for them..

Oh no, I agree...good for them for having the money... just.. amazing how someone could have so much money.

And depends on where they are flaunting it... no tasteful to do in a lower income neighborhood
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Old 08-17-2013, 04:00 AM
 
Location: Hernando County, FL
8,489 posts, read 20,656,534 times
Reputation: 5397
What price range are you talking? If it is an investment property in the $50,000 range you may get some people that just take out an equity line on their main home rather than getting a separate loan for the investment property.
Many people have saved up much more than that over the years and it doesn't make them rich they would just rather pay for the property outright. I bought the house before my current home with cash because I had just sold my business and used that money and my savings but it was far from a million $ home.
Why would you consider someone paying cash to not be tasteful? The 2 have no link, it sounds more like you are envious and are judging them because of this.
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Old 08-17-2013, 06:44 AM
 
Location: Jupiter
1,108 posts, read 4,220,070 times
Reputation: 647
Smile Cash deals rock

My wife recently sold her townhome in NY to an all cash buyer. She ended up taking a little less than she might of gotten, but an exact same unit, in the same community, the seller turned down the buyer's offer and their place is still for sale. Worst part, they have lowered their price below what my wife had initially listed her place for. The sad part, the seller had actually sold her place twice for more money, unfortunately, neither buyer was able to get a mortgage - SO CASH IS GRAND -- and she is still trying to sell......

While negotiating the offer....we found out that there are more and more all cash deals out there. Apparently, people are not only saving more, but cashing in their retirement funds to buy a home. About the only problem we encountered, was the buyer wanted a 10 day closing, which we were able to extend 30 days - BUT CASH IS CASH - so she accepted the offer.
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Old 08-17-2013, 11:10 AM
 
Location: SW Florida
14,956 posts, read 12,162,044 times
Reputation: 24853
Quote:
Originally Posted by sweetness8t5 View Post
I SWEAR I am not "hating"

I am seriously perplexed... Ive been home shopping recently and been hearing "cash offer"...

My price range is in the modest range...

But I am seriously in awe how some people are able to pay cash for these properties.

How do people make so much money... I mean besides inheritance.. selling their house/real estate... how do people make so much money... ?

Also watching Million Dollar Listing too... they can pay 10MIL CASH!!!??? How do people make and stay rich?


Am I the only one that is constantly asking this question?? lol


Gosh, I hope to pay cash for my next home... but I'll settle for a pretty decent down payment
From what I've heard many cash buyers are from other countries looking to invest their cash in the US. I've heard that many of those folks come from either countries in South America, or China.

Realtors/buyers love cash buyers because they can circumvent the round-robin, red tape and uncertainty that comes from trying to get a mortgage these days.
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Old 08-17-2013, 11:21 AM
 
Location: Wake County, NC
2,983 posts, read 4,627,603 times
Reputation: 3529
Quote:
Originally Posted by Travelassie View Post
From what I've heard many cash buyers are from other countries looking to invest their cash in the US. I've heard that many of those folks come from either countries in South America, or China.

Realtors/buyers love cash buyers because they can circumvent the round-robin, red tape and uncertainty that comes from trying to get a mortgage these days.
There are also large investment firms buying up houses for cash. This may be more in the Tampa area than S. Florida.
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Old 08-17-2013, 12:31 PM
 
Location: Miami/ Washington DC
4,836 posts, read 12,013,887 times
Reputation: 2600
People are sucessful or their families were. It's as simple as that. Somebody might make $100 million selling a business, millions in the stock market, a real estate developer can make 200 million on building one condo. Partners at large law firms can bring in millions a year and so can some doctors.

I worked for a billionaire families in house counsel this summer and after seeing what having that much is like up close its nuts. Money really is no object. From having private jets to just buying everything you want on eBay.
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Old 08-17-2013, 08:33 PM
 
515 posts, read 1,348,962 times
Reputation: 564
All a "cash offer" really means is that there is no mortgage. The buyer could have taken out an equity loan on another property to pay cash for the one they're buying, they could have a personal or business loan, or they could be cashing out a retirement or investment account to buy the property. It doesn't necessarily mean that they're filthy rich, although it's always a possibility.

It's not that uncommon for retirees to pay cash for a house. They are most likely making money from the sale of their previous house since the mortgage has been paid off, plus they also are frequently able to liquidate some investments. While most 20 or 30-somethings don't have enough money to pay cash for a house, it's not all that uncommon for older people to do it. Both my parents and grandparents bought their retirement homes with cash.

That said, with the way mortgage rates have been in the past couple years, paying cash for a house may not be the greatest financial decision anymore. Not only can you deduct mortgage interest on your taxes, but with historically low rates you will probably get a better return on investing the cash and paying a mortgage.
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Old 08-17-2013, 10:28 PM
 
12,017 posts, read 14,337,386 times
Reputation: 5981
Foreigners who have appreciating currencies and incomes against the dollar (think canadians, chinese, brazilians, some europeans).

Also private equity and hedge funds

In many cases, foreigners find US real estate to be cheap (particularly a few years ago) especially when their own currencies have been going up. The canadian dollar buys a lot more here than it used to a decade ago
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