Posted by Robert on December 04, 2000 at 09:26:23:
These investors usually have money partners who they work with. The investor pays the lender (whoever it is) back the money plus a nice profit.
WE BUY HOUSES - CASH 3 DAYS ?? - Posted by Arthur Montano
Posted by Arthur Montano on December 04, 2000 at 07:40:12:
I am seeing signs like these popping up around town. Other than having a fairly large bank account, what are the ABC’s of this type of investing? The private lenders around here want everything from an appraisal to surveys and insect reports, which take somewhat more time. Am I correct in assuming that these are veteran investors who have saved enough capital to back up their offers, or is there another type of private money lender who offers cash in 3 days?
Re: WE BUY HOUSES - CASH 3 DAYS ?? - Posted by Doug,ky
Posted by Doug,ky on December 05, 2000 at 09:33:01:
You received good responses and answers from those who answered. The key is OPM (other people’s money) when you start using that and solving the sellers problems, you’ll learn just how powerful that ad is and just how true it is.
doug
Remember Terry’s 60 second real estate lesson. - Posted by steph in tex
Posted by steph in tex on December 05, 2000 at 07:29:17:
I advetise this way, (only I give myself 7days) yes to get the phone to ring, but yes~ I can~ and you can ~deliver.
Remember Terry’s 60 RE lesson?
The idea is to give the seller his portion so he can go away.
I do pay cash, and have done it in as few as 3 (yes three)
days…(just enough time for a title search, etc) BUT~ I paid cash for the sellers equity, or the
difference between what they needed and the amount they had financed.
Many times that is all the seller is concerned with. These are the ones you need to be prepared to stike fast, at the dining room table. Many times these are the folks in foreclosure, etc.
I can “pay cash” on these subject to deals all day long, and so can you!
Just another point of view. Hope it helps.
steph in tex
Re: WE BUY HOUSES - CASH 3 DAYS ?? - Posted by JPiper
Posted by JPiper on December 04, 2000 at 18:56:47:
I don’t think you’d be correct in assuming these are “veteran investors”. I would say that many of the investors advertising in this manner are newbies, and using the ad to draw calls…at which point an offer is made that is so unrealistically low that the seller will not accept.
A REAL all cash offer in which the buyer can actually perform in 3 days is a very powerful offer. The offer is typically “as is”, requires no appraisal, inspection, etc…the typical requirements that a lender might impose. Chances are a title search or commitment will be required by the investor, but this can probably be accomplished within this time frame with the right title company.
The money is going to probably come from the investor’s own cash, perhaps from a credit line of some sort, or possibly from a money partner(s).
This offer does not need to be unrealistically low…but chances are it will be low reflecting the speed with which the seller needs the money. In my opinion this is the type of offer that results in an outstanding deal to an investor. As they say, “cash talks, bullsh*t walks.”
JPiper
Re: WE BUY HOUSES - CASH 3 DAYS ?? - Posted by Jim IL
Posted by Jim IL on December 04, 2000 at 16:43:19:
Arthur,
The signs you are seeing are obviously from an investor.
But, this does not always mean that investor pays cash for all his deals.
Most of the courses offered out there advocate REI’s adcertising that they close fast for CASH!
I know when I started out, I did this.
And I have and will use CASH for the right deal.
But, the right deal is 50% LTV or so.
The bottom line is to get your phone to ring.
Since most people who are in trouble with there homes, and finances think there problem is unique anyway, there is nothing wrong with getting them to call you and then making a solution to their problem that does not close in 3 days.
As long as you solve the sellers problem, then you have a deal, cash or not.
I know one investor in my area that DOES advertise that he buys for cash and yet has not done a single cash deal EVER!
But, to be perfectly honest, since I rarely use cash myself, I have eliminated the use of the word CASH in my ads.
No point.
Sellers who are truly motivated could care less about “How” you buy, just that you do actually “Buy” homes, this solving there problem.
HTH,
Jim IL
Re: WE BUY HOUSES - CASH 3 DAYS ?? - Posted by JohnBoy
Posted by JohnBoy on December 04, 2000 at 10:33:21:
The idea of these signs being advertised this way is to get sellers to CALL. The ad says they will pay cash in 3 days, but most of these deals will end up being purchased on some type of terms.
I have an ad that says I pay CASH within 3 days. YOU have a house worth $100k and call my ad. You assume since I offer CASH that you might be able to sell me your house for quick cash. Well, yes and no! You want CASH in 3 days??? No problem! I can pay you $50k CASH for your house within 3 days!!! What’s that? You can’t take $50k? That’s not enough? What do you NEED for it? WHAT? $90k is the best you can do? Well, I can problem work something out with you to get you $90k for your house, but I can’t give you $90k CASH for it. I might be able to go the $90k, but it will be on MY TERMS!!!
Now if you accept the $50k CASH offer, how hard do you think it will be to find hard money to buy that house? If you won’t or can’t accept $50k CASH and if I come up with a SOLUTION to solve YOUR PROBLEM by getting you $90k that you NEED for it, how likely is it that we will be able to work out a deal…assuming you are MOTIVATED to get out from under this property???