Posted by Kawika Ohumukini on January 26, 2004 at 11:37:30:
Be careful in the details about how Carleton discusses getting cash at closing. Sometimes he means soon after closing so you won’t walk away from the closing table with “cash in your pocket” on every deal but many methods do net you cash within a short period after closing.
You’ll hear a lot about getting loans greater than the purchase price by getting a lender to finance you for a percentage of the ARV (after repaired value) so that if the actual purchase price is less than the finance price you will get cash.
The other ways are getting lot’s of included assets and quickly selling them, or the rights to them which can happen before the deal, and ending up with money that way. One example Carleton gives is someone who sold the rights to trees on the property to a lumber yard.
Another way is to get some furniture, lawn equipment, a car, or air, water, or grazing rights. All of which you can sell or lease after close.
Look at everything about the property and what’s on it as an asset that you can ask for as part of the deal. If you write I want the riding lawn mower as part of the deal didn’t you just get an expensive asset you can sell? If they say no didn’t you just get a negotiating item to lower the price or get more favorable terms?