We want to buy a $75k property for investment. My husband and I qualify for a $300k mortgage loan but this seller wants a cash only deal.
It seems there must be some way to obtain another type of loan or arrangement that would enable us to pay the seller in cash as s/he requests but we are new to real estate investing. Any ideas?
2007-10-06 17:03:28 · 6 answers · asked by KH 2 in Business & Finance ➔ Renting & Real Estate
Adding in: The property is in a state of disrepair, located in an old neighborhood on the upswing. We aren't buying the house to live in it. It would be a rehab-resale situation.
2007-10-07 02:50:18 · update #1
Find a better investment. Going into debt for an investment is not a wise move financially.
2007-10-06 17:07:25 · answer #1 · answered by wildeyedredhead 5 · 1⤊ 2⤋
You need to ask for clarification.
Cash Only could just mean that they are not willing to do any seller carry type financing.......in which case getting a loan from a lender is not a problem...
Or Cash Only could mean that they know the property will not get a clean appraisal for some reason (uninhabitable) and they already know the lender will not lend on this property in which case if you really want the property you will need to either bring in cash or refinance on another property to pay cash for it.....
Good Luck
Open Book Advisorsâ¢
2007-10-07 01:26:50 · answer #2 · answered by Anonymous · 3⤊ 1⤋
Ask the seller why they want cash only.
It could be that they want a quick close (ten days as opposed to the 45 days it might take to get a mortgage).
Don't be embarrassed to ask questions. If the seller can't explain it in a fashion that you can understand then walk away. Never get involved in a transact that you don't fully understand.
**********************
On your additional information: I bet the seller thinks the house is so trashed out that the lender will not agree to loan on it. I have had that happen before especially when it is as you described. If your lender can swear to the owner that the condition won't matter to your investor that is providing the money?
2007-10-07 07:58:24 · answer #3 · answered by glenn 7 · 2⤊ 1⤋
Confused here ,
The seller would get cash from your lender .
She is Not financing the deal , your lender is and they Pay Her , cash ( in check form , but still cash )
So what is her real issue ?
( sometimes people asking that are NOT the legal title holders / have liens and are looking to get around that . Use caution . . . )
Addit details : Your new details indicate 'open books observation about the property Not being lend-able is a possibility .
If it will Not pass the lenders inspection ( not worthy of a loan ) either You have to come up with the funds or the seller has to finance .
Still , check out the title for liens Before laying out $$$ .
>
2007-10-07 00:10:56 · answer #4 · answered by kate 7 · 1⤊ 1⤋
sorry but I really doubt that you can get around it, as he is the seller so he can tell you what type of payment to give him (either cash/credit card/ect); really think is non-negotiable
(meaning loans might not work)
2007-10-07 00:06:43 · answer #5 · answered by Anonymous · 1⤊ 2⤋
I agree with Kate. Seems like something fishy is going on.
2007-10-07 09:27:14 · answer #6 · answered by . 3 · 0⤊ 2⤋