Buyers with "CASH" - Posted by Jim

Posted by Frank Chin on March 09, 2001 at 10:47:06:

On moving day, this police officer rolled up my carpet and took it to his truck while I was watching. Told him to put it back. He did, apologizing.

When I came back to next day to lay the carpet - it was gone again. Couldn’t believe a COP would also steal. But then he’s not ANY cop.

From time to time, tenants offering to pay by cash would say, “Look, you don’t have to report it”.

Remembering what happend to our friend, I would respond with indignation, “Sorry, I don’t beleive in cheating on my taxes. I report everything, which is why I want a money order. If you or your boss are cheating, its not my business.”

I don’t think anyone’s trying to make trouble for me after having said that.

Buyers with “CASH” - Posted by Jim

Posted by Jim on March 07, 2001 at 11:26:46:

In the real world, do people who want to buy these upper end price range houses that can’t qualify for bank loans really have these big amounts of cash available to do these deals?

I’ve been hearing from people (I know…that’s what I get for listening to others) that if these people have that amount of cash then they should be in good shape to get new loans with no problem.

If you think about it, it kind of makes sense.

Tell me they’re wrong.


$They’re$ out there… - Posted by SusanL.–FL

Posted by SusanL.–FL on March 07, 2001 at 14:12:41:

Years ago I owned a house in Oakhurst, NJ. This town bordered on Deal, NJ, a very exclusive ocean-side community.

A realtor friend mentioned once how she was showing a property in Deal and up the front walk came a buyer carrying a brown paper bag stuffed full of money$!! It happens!

I used to go to the garage sales over in Deal and the ONE thing that ALWAYS stuck out in my mind were the BEAUTIFUL redwood telephone poles there.

In another instance, (years ago), I was going to put down a cash deposit on an investment property. The mortgage broker that I was dealing with told me that it wouldn’t be accepted because it was considered “mattress money” [i.e., drug money].

Said if it was ‘traceable’ (on a bank statement), then that was ok–otherwise, forget it.

Hmph! It was legitimate, hard-earned money that I kept in my safe.

Live and learn…

Re: Buyers with “CASH” - Posted by Stacy (AZ)

Posted by Stacy (AZ) on March 07, 2001 at 12:00:17:

Jim, to tell you the truth, I stay away from this strategy with the higher end houses in Phoenix. Also, in case you haven’t noticed, the higher end homes have started to sit on the market longer lately here in Phoenix. You would be safer getting an option, in my opinion, and scaling back your commitments in these larger deals.

Just my 2 pesos.


You mean “CASH” in Suitcases - Posted by Frank Chin

Posted by Frank Chin on March 07, 2001 at 11:55:55:

I have dealt with buyers and tenants who own small but profitable cash businesses. They have plenty of cash but nothing they can show he bank, because they show the IRS nothing in their tax returns.

These people live in a world of their own and its difficult for us to imagine a guy with $500,000 cash in his basement but can’t qualify for a 50K loan.

Re: $They’re$ out there…- and Watch Out - Posted by Frank Chin

Posted by Frank Chin on March 08, 2001 at 06:59:04:

I tell all my tenants to pay by check, or buy a money order if they get paid by cash.

Didn’t mention this to a police officer I rented to since I assumed cops get paychecks. This cop gave me his first months rent in cash. He explained its money from a side job which is none of my business.

About a year later, he gave up the apartment. He was arrested and kicked off the force for bribery.

A friend of my mother-in-law, an elderly lady, owns a rental. A tenant insisted on paying in cash and recommended she not report it on her taxes. She readily agreed.

After living there for one year, he demanded on year rent free - or he’ll turn her in for cheating on the taxes.

He got his one year rent free.

So… - Posted by Jim

Posted by Jim on March 07, 2001 at 12:00:37:

You’re saying "There Out There"with cash to do these deals. …And “Way Out There” in there way of thinking.


Re: $They’re$ out there…- and Watch Out - Posted by Chenel Moore_Fl

Posted by Chenel Moore_Fl on March 09, 2001 at 09:48:47:

This really happend??

Imagine if you want “Proof of Funds” - Posted by Frank Chin

Posted by Frank Chin on March 07, 2001 at 18:37:56:

What are you going to do - ask the guy to bring a suitcase of small bills to your house to count it?

How do you lug it out from the closing - and where do you put it afterwards. How big a suticase do I need.

As I said - I don’t live in that world and hard for me to imagine challenges that these people face.