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Old 03-27-2022, 11:21 AM
 
6,321 posts, read 10,338,005 times
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Quote:
Originally Posted by HudsonCoNJ View Post
There have been periods of time with both rising rates and prices. It’s not unprecedented. Will it happen now? We’ll see. One thing that remains true is inventory is very low, especially for this time of year.
Yeah, and I understand that with rising rates, that could also prevent people from listing that were on the fence, continuing to keep inventory low.

But let's be honest, with prices rising ~20%+ in a year in some places, even if there is a ~5-10% drop, that's basically nothing, and should really only have an impact on people that bought in the last few months.
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Old 03-27-2022, 11:24 AM
 
Location: Middle of the valley
48,518 posts, read 34,815,517 times
Reputation: 73729
Quote:
Originally Posted by NORTY FLATZ View Post
You nailed it. Yup. Quite a few of them, are doing just this. 1-2 million in dead Presidents. It's how drug dealers launder money. (Buy for cash, then sell.) Suddenly, it becomes "legal tender." Some even own "legit" operations, such as cannabis stores...

Since the DEA still classifies it as a Tier1 drug, no banks can knowingly touch these transactions. So, there's a HUGE underground market.
Huh. Definitely not my area of expertise but when I bought real estate for cash, I had to show where the money came from. I have no doubts there are ways around this, but my bank asked questions.
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Old 03-28-2022, 09:00 AM
 
Location: Boilermaker Territory
26,404 posts, read 46,551,112 times
Reputation: 19539
Quote:
Originally Posted by 1insider View Post
57% of the closed deals in my market in the last 30 days were cash.
That doesn't surprise me, but higher rates will hurt younger potential buyers that aren't as wealthy who can't pay cash...
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Old 03-28-2022, 09:01 AM
 
Location: Boilermaker Territory
26,404 posts, read 46,551,112 times
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Quote:
Originally Posted by HudsonCoNJ View Post
I would imagine that a significant number of those “cash” deals are really just equity pulled (borrowed) from another property.
Correct, most of the time.
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Old 03-28-2022, 10:58 AM
 
Location: Bergen County, NJ
4,027 posts, read 3,630,083 times
Reputation: 5857
Quote:
Originally Posted by GoPhils View Post
Yeah, and I understand that with rising rates, that could also prevent people from listing that were on the fence, continuing to keep inventory low.

But let's be honest, with prices rising ~20%+ in a year in some places, even if there is a ~5-10% drop, that's basically nothing, and should really only have an impact on people that bought in the last few months.

It shouldn’t even impact those who bought recently as long as they can continue to afford it.
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Old 03-28-2022, 11:59 AM
 
Location: San Diego
1,536 posts, read 1,482,489 times
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Quote:
Originally Posted by 1insider View Post
57% of the closed deals in my market in the last 30 days were cash.
Cash buyers still had to make the best offer which meant competing with those making offers with really low interest rates. That competition will be less with higher interest rates.
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Old 03-28-2022, 12:42 PM
 
Location: Middle of the valley
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Quote:
Originally Posted by JohnAlt View Post
Cash buyers still had to make the best offer which meant competing with those making offers with really low interest rates. That competition will be less with higher interest rates.
One home purchase I made was slightly lower than another offer. But mine was cash, and theirs was not. They took my offer.
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Old 03-28-2022, 07:11 PM
 
Location: NY/LA
4,663 posts, read 4,546,351 times
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Quote:
Originally Posted by Mikala43 View Post
Huh. Definitely not my area of expertise but when I bought real estate for cash, I had to show where the money came from. I have no doubts there are ways around this, but my bank asked questions.
If you're paying cash, in what part of the process did the bank ask questions?
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Old 03-28-2022, 08:41 PM
 
Location: New York Area
35,002 posts, read 16,972,291 times
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Quote:
Originally Posted by Mr. Zero View Post
If you're paying cash, in what part of the process did the bank ask questions?
Who said a bank was involved? Or maybe it was an unsecured line of credit.
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Old 03-28-2022, 09:43 PM
 
Location: Middle of the valley
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Quote:
Originally Posted by Mr. Zero View Post
If you're paying cash, in what part of the process did the bank ask questions?
IIRC it was during the transfer to escrow. So it may have been then. I remember being asked to provide a money trail
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