Buy house quick cash, close quickly- is this true? - Posted by Len(NYC)

Posted by Len(nyc) on July 17, 2001 at 12:39:01:

Ill let you know how it turns out, what areas are you going to be looking into, or area in NJ. Ill keep you in mind if anything. Im trying for the bronx and queens.

Buy house quick cash, close quickly- is this true? - Posted by Len(NYC)

Posted by Len(NYC) on July 17, 2001 at 09:57:14:

This might sound like a dumb question, but isnt it a little misleading to state that you buy houses all cash and close within 24-72 hours. The reason why I say this is becasue Im about to place my ad, and do my biz cards but I dont see how Ill be able to follow through on the term “close quickly” , Even from the courses Ive studied it still seems that once I find my motivated seller that Ill still need to find a buyer, and after that do things on the run and then find a title company and a lawyer. Also arent most of the purchase agreements with a 30 day limit for you to find a qualified buyer that can either take over the payments, or l/o the property. IM sure the more experienced players here can close quickly since they may have means to more capital but what about for us newbies, are we being totally honest. Just wondering If Im reading to much into it, or do closings happen this quickly most of the time, as you can tell I have yet to do my first deal. Just a little thought, any opinons would be appreciated

FAST close, yes, cash, sometimes - Posted by Jim FL

Posted by Jim FL on July 17, 2001 at 19:04:18:

Len,
I agree with you, offering CASH in my ads is not something I do. However, I can offer a “quick” or a “fast” close.
What these words mean to most are different with each one.
If a seller is willing to allow me to buy the home “Subject to”, then I can close in as little as 48 hours, and that is “Quick” to me. (sometimes faster, depending on how long it takes for me to check title and verify everything else.)
When a seller calls me, I first determine their needs and go from there.
Many times sellers will ask me “How does this work?”, and I have an answer for them.
I tell them, "I buy houses from many different people, in many different situations,each purchase is different, so there is no set way we buy them all. But, I can break it down a little for you Mr./Mrs. Seller. I essentially buy homes one of two ways, either ALL CASH for a SEVERE discount, or on terms."
Of course they all want to know about the cash offers, and what type of discount we are going to need?
I then tell them I need more information about the home, and their situation before I can acurately determine that. Obviously I do not want to offer them less than what they owe on the house, unless they can afford to make up the difference themselves.
I then gather some financial details about the home, loan balances, payments, etc.

I have and probably will use CASH to close a few deals here and there, but the majority of my deals are using terms in one way or another. So I do not feel comfortable stating in my marketing that I buy for cash, just that I “BUY HOMES”.
The “How?” is determined after we talk to the sellers, and learn more info from them, as well as other sources.
If I can truly get a home for a DEEP discount, finding the cash to close is not going to be a problem. Good deals always attract funding.

With that said, my marketing is multi pronged. My newspaper ads say things like:
I BUY HOMES
Any condition/area/price range
No Equity/No Problem
Offer within 48 hours
xxx-xxx-xxxx

The 48 hours is AFTER I view the home, and if the seller wants an offer after we meet and look things over.

For my car signs, bandit signs, etc. My wording is simple and short:
“I BUY HOMES xxx-xxx-xxxx call toll free”

and of course, flyers and letters go a little more into detail, describing the type of situations sellers may be facing and the fact that we CAN deal with them.

HTH,
Jim FL

Shoudn’t be offering this… - Posted by JT - IN (St. John, USVI)

Posted by JT - IN (St. John, USVI) on July 17, 2001 at 16:16:47:

Len:

My suggestion, if you are unnable to deliver, on any term that you are contemplating advrtising, then, DO NO PUT THAT IN YOU AD !!!

Yes, people can close in 24 to 72 hours, if they have control of the CASH; meaning in an account or on a LOC. It is also advised, even if you have this cash, and have successfully checked the title, found it to be clear, (hopefully by a title co, if you are new), then escrow the funds to the seller for about one week, cause the seller could be out borrowing monies on this property in the form of a mtg, the same day they are selling it to you, and this lien will not show up for 5 to 7 days. So, I always, escrow the funds, have the title co, or myself recheck the title, in a week, to insure that the seller didn’t do any last minute mtg loan shopping, and leave me with a recordable, valid mtg, that I would have to pay.

Sounds like you should not be in the game of offering these terms, unless you are able to deliver.

Just the way that I view things…

JT - IN (from St. John, USVI)

Buy house quick cash, close quickly- is this true? - Posted by SCook85

Posted by SCook85 on July 17, 2001 at 16:05:15:

Len,

If you advertise that YOU buy houses for CASH, and you mean that then you can folow through.

You are concerned with not following through with what you put in your ad because there is a whole other twist to what you are doing. You want to find a buyer to take over your position. You aren’t buying the home.

I can buy a home in 24 hours. But if I want to wholesale the deal to someone else then I typically need about 30 days. It all comes down to what your real intentions are.

Closing Quickly- what does quickly mean. I have had settlements that have taken 6 months. I would have been extremely happy if they settled in only 60 days. 60 days would have seemed quick to me. Quick is a relative term don’t worry about it. For some people quick may be 24 hours, others it may be 60 days. If you put 24-72 hours in your ad, then you have locked yourself into a specifice time, but “quickly” doesn’t specify any amount of time.

Steve

Re: quick cash, close quickly- is this true? - Posted by Todd (OH)

Posted by Todd (OH) on July 17, 2001 at 15:14:26:

Yes if you have the cash, or access to it, you can close within 72 hours if not sooner. If you don’t feel comfortable with that, then run a different ad. It’s not a big deal.

FYI: “72 hours” comes into play because that’s about how fast a title company can typically do a title search and prepare the closing package for a cash deal(at least in our area). If there are payoffs on underlying loans, or other extenuating circumstances, the closing time frame might be longer.

Re: Buy house quick cash - Posted by Sue T

Posted by Sue T on July 17, 2001 at 11:26:14:

Len, I have the same concerns. I’m new also and am going to put an ad in the paper today. It will only say, “We Buy Houses” any condition and my number.
I figure the worst that can happen is I’ll get the experience of talking to people and seeing the properties. There is no commitment until I choose to make one. I think it will take time before I feel comfortable enough to make an offer. Who knows? Maybe the right house will come along sooner then I think. I’m putting “We” instead of “I” because my daughter is a partner and I feel it gives me a cushion when someone wants a decision I’m not able to make on the spot. I can say I have to check with my partner. Let me know how you make out.
Good Luck, Sue from NJ