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Old 05-16-2021, 05:46 PM
 
1,797 posts, read 851,526 times
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To the OP,

You can borrow money against anything you own and still do a CASH deal on the property you're buying. This could include the house you currently own, savings and investment accounts, life insurance policies that have a cash value, stocks, credit cards, your baseball card collection, your wife's diamond ring , and anything else that you own that has a cash value. I'm not saying that it's necessarily wise or prudent to borrow money against just anything. I'm simply saying it can be done.

You can also borrow money against the house you're buying AFTER you buy it. Any loans against the house you're buying before you buy it should be disclosed in the purchase agreement. This could even include seller financing for a portion of the purchase price, but of course, this would have to be spelled out in the purchase agreement.

There are all kinds of ways to pay CASH for a house purchase other than borrowing against the house you are purchasing. You can also still have a house inspection, termite inspection, and all that. And, of course, you should still require a disclosure statement from the seller. None of those things should change just because you're paying cash for the property. In fact, your cash deal should be contingent on a satisfactory house inspection, title search, and all the other normal things. It just won't have any financing or appraisal contingencies.

Some people seem to think that just because you're paying CASH that you're waiving all these other inspections, property disclosure statements, and things. NOT TRUE! You're simply waiving any FINANCIAL contingencies and red tape that typically goes with a mortgage loan.
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Old 05-16-2021, 08:48 PM
 
Location: Orange County, CA
279 posts, read 56,092 times
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OP, I think the bottom line is to get the house. Besides the financial terms, you should also make a good impression. Impression is very subjective and on this thread you already saw some people reacted negatively. And the seller might also, even if it's jumping to conclusions.

When I made my offer, my realtor told me to write a little bio telling the seller about myself and why I like their house. Now I might say, why should the seller care? So what, that I am a porn star? What do they care as long as they get their money? But in reality you are dealing with humans and impressions in a competitive situation, and everything matters.
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Old 05-16-2021, 08:54 PM
 
Location: Long Island
9,534 posts, read 20,751,583 times
Reputation: 5254
Quote:
Originally Posted by DrPibbs View Post
OP, I think the bottom line is to get the house. Besides the financial terms, you should also make a good impression. Impression is very subjective and on this thread you already saw some people reacted negatively. And the seller might also, even if it's jumping to conclusions.

When I made my offer, my realtor told me to write a little bio telling the seller about myself and why I like their house. Now I might say, why should the seller care? So what, that I am a porn star? What do they care as long as they get their money? But in reality you are dealing with humans and impressions in a competitive situation, and everything matters.



In the past, I have used this selectively, and successfully. However, at least in New York, facilitating any kind of personal letter as a Realtor is now a big no no - potential violation of Fair Housing, with big $$$ fines.
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Old 05-17-2021, 05:07 AM
 
187 posts, read 60,719 times
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You are making this more complicated than it needs to be. If you want to finance a portion of the cost, then just do it. It is the overall offer that will matter. The biggest factor is how much you offer to pay for the property; come in with a top bid and you are on the short list especially if you have substantial down payment. After that, you want a minimal numer of contingencies. In hot markets, many people are offering quick closings and waiving inspections.
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Old 05-17-2021, 09:40 AM
 
Location: Denver CO
23,535 posts, read 15,021,122 times
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Quote:
Originally Posted by OtterTrees View Post
You are making this more complicated than it needs to be. If you want to finance a portion of the cost, then just do it. It is the overall offer that will matter. The biggest factor is how much you offer to pay for the property; come in with a top bid and you are on the short list especially if you have substantial down payment. After that, you want a minimal numer of contingencies. In hot markets, many people are offering quick closings and waiving inspections.
And you are ignoring the reality that many people will prioritize a cash offer, because they feel more secure about the transaction going through. They may pick a cash offer even if it's not the very highest amount offer they receive although unlikely they will take a big hit on the numbers. But if they are looking a small difference between a cash offer and a "creatively" financed offer, lots of people will give up a couple of thousand for the security of cash. Obviously people get mortgages and the deals go through all the time. And lots of people are not ever going to be in a position to pay cash and can only make offers that include getting a mortgage. And they are able to buy - but sometimes that means eventually. In this market, there are lots and lots of stories out there of people having to make offer after offer after offer until the get one accepted.

So no, it's is not the overall offer that will matter. Cash buyers have an advantage in a seller's market, that is undeniable. OP can be a cash buyer if they want, and they need to decide of it's worth liquidating assets in order to have that advantage.
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Old 05-17-2021, 11:43 AM
 
14,416 posts, read 4,358,705 times
Reputation: 8650
Quote:
Originally Posted by nyc2pit View Post
Hi all,

Lost out on a home recently and looking for a way to improve the attractiveness of an offer.

We are fortunate enough to be in a position where we could make a "cash" offer at the price range we are looking at. However, to do this would require liquidating investments that I I would prefer to keep in the market.

Is is possible to make a "cash" offer on a home, showing a brokerage statement, for example, as proof of funds and - at the same time - apply for a mortgage on the property?

Basically, my thought is I could "show" that I can pay for a home in cash, but if my mortgage is approved/ready, etc. by the time we close, then I'm going to go ahead and use that. Basically, I'll take on all the risk of getting financing, appropriate rates, appraisal, etc.

I did pose this to my relator who said this amounted to a "bait and switch" and advised me against it. I'm understand her point of view, but also not sure I agree - if I can guarantee the seller the funds - one way or another - why would they care where they ultimately come from?

Appreciate any thoughts.
Yes, what you are considering is possible. Absolutely.

Two things:

1. If you represent to the seller that you have a certain amount of cash or other assets in order to induce the seller to enter into a contract, then you had better tell the truth. Otherwise, you'll be on the hook for fraud if your lies damage the seller.

2. Generally, a cash offer simply means that the seller will not be taking back a note, although in a residential real estate context it means the contract will not include a mortgage contingency (the absence of which is what makes such an offer attractive to the seller). When it's time to close, where the cash comes from is none of the seller's (or escrow agent's) business. So, yes, some or all of the cash can come from a lender at closing, and when the escrow agent has timely received the full amount of "cash due from buyer" you will have met your obligations in that regard.

Last edited by hbdwihdh378y9; 05-17-2021 at 12:22 PM..
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Old 05-17-2021, 12:05 PM
 
14,416 posts, read 4,358,705 times
Reputation: 8650
Quote:
Originally Posted by Gaylord_Focker View Post
His/her response is fine. It's a BS move by you. And obviously if you have to liquidate, maybe a cash offer isn't best? I get trying to work the system but I can't stand people who are deceptive. If it's a cash offer, have the cash ready. Don't go to closing and say "on second thought, I think I'll finance, can I has a few days?" Next please.
The OP has the cash ready and is accurately informing the seller of his/her assets. The OP is not being deceptive. Why would you imagine a scenario that is contrary to what the OP said?
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Old 05-17-2021, 12:06 PM
 
14,416 posts, read 4,358,705 times
Reputation: 8650
Quote:
Originally Posted by Ken_N View Post
I don’t see how a contract that is more complicated than usual, with special financing contingencies will make your offer more attractive. A straight cash offer will still beat your offer.
OP is making a straight cash offer.
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Old 05-17-2021, 12:26 PM
 
Location: OC
9,023 posts, read 5,228,038 times
Reputation: 7166
Quote:
Originally Posted by hbdwihdh378y9 View Post
The OP has the cash ready and is accurately informing the seller of his/her assets. The OP is not being deceptive. Why would you imagine a scenario that is contrary to what the OP said?
From his OP: Basically, my thought is I could "show" that I can pay for a home in cash, but if my mortgage is approved/ready, etc. by the time we close, then I'm going to go ahead and use that

Not even a little deceptive? If I were a seller I would be somewhat perturbed by the last second switch. If it wasn't deceptive, would the OP say "I have the cash, but I'm gonna finance. Will you accept my offer?" Ifs and actuallys could be alarming in a fast moving market.
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Old 05-17-2021, 12:36 PM
 
14,416 posts, read 4,358,705 times
Reputation: 8650
Quote:
Originally Posted by Gaylord_Focker View Post
From his OP: Basically, my thought is I could "show" that I can pay for a home in cash, but if my mortgage is approved/ready, etc. by the time we close, then I'm going to go ahead and use that

Not even a little deceptive? If I were a seller I would be somewhat perturbed by the last second switch. If it wasn't deceptive, would the OP say "I have the cash, but I'm gonna finance. Will you accept my offer?" Ifs and actuallys could be alarming in a fast moving market.
When OP says "I can pay cash", it is true. How is that deceptive?

Last edited by hbdwihdh378y9; 05-17-2021 at 01:01 PM..
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