It’s hard to say if there would be a discount off of the asking price for an all cash offer. If the seller will not carry the financing and makes you go get your financing through a bank, then he will get all cash anyway.
Any discount would be dependent on the local real estate market and the motivation of your seller.
Could you pay a seller all cash and then refinance the cash back out. Answer is maybe. Many lenders today are looking for seasoning before they will consider a refinance on a particular property. I’ve often heard that you may have to hold the proeprty from six months to one year.
Discount for an all cash deal?? - Posted by Joel David
Posted by Joel David on April 28, 2000 at 22:34:08:
I am thinking about getting into the real estate investing game and I have a plan that should technically work. I have access to a large amount of cash from a partner. I would like to pay cash for multi family residences and then refinance to pay back my partener.
This leads me to my question, how much can you generally discount off the asking price when offering to pay in cash?
Secondly, what benefits are in it for the seller? Technically would they not get all cash even if I financed it traditionally through a bank?
Thirdly, while I am at it, has anyone tried this and do banks frown upon it at all?