Posted by Ben (NJ) on July 18, 2003 at 20:55:47:
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Ethics Question about, CASH OFFERS!!! - Posted by Dfree
Posted by Dfree on July 18, 2003 at 14:05:15:
I’ve noticed a significant difference in response from Listing Agents from my Low Ball CASH OFFERS as oppose to my Low Ball Finance offers. My CASH OFFERS get next day (if not same day) counter offers and often insight into the property’s status/issues. My Finance offers usually takes 3 or 4 days or more for a response and that’s with my top realtor persistently requesting a response (I’ve been in the office several times with her while she’s requesting a response and MAN!!! she’ll make you move) as well we rarely get any addt’l insight and often the counter offers are very near the Listed Price. So obviously CASH OFFERS are more preferred. Unfortunately I’m only able to make a few CASH OFFERS per year.
My primary source of funding is our regional/local HML we have a great relationship and we’ve completed many deals with them.
Q. Is there an ethical or legal issue submitting offers as CASH when the CASH is coming from your HML.
I believe this could make the difference in possibly 4 or more deals per year. Please let me have your thoughts.
Ethics Question about, CASH OFFERS!!! - Posted by Bill H
Posted by Bill H on July 18, 2003 at 21:27:45:
Ask your realtor. I think you will find that any offer WITHOUT a financing contingency is considered a cash offer.
========>bill
What does HML stand for?? - Posted by MIKE DWYER
Posted by MIKE DWYER on July 18, 2003 at 19:45:02:
Thx for you’re responses.
Re: Ethics Question about, CASH OFFERS!!! - Posted by jasonrei
Posted by jasonrei on July 18, 2003 at 17:01:58:
I frequently make cash offers and use HML or private money to close.
I don’t tell the agents what I’m going to do, but I let the title company know about 2 weeks or less before closing. I have bought some REO’s where the contract I signed said “If Buyer seeks financing, this contract is terminated and Buyer forfeits their earnest money”, or words to that effect. I sought and got financing anyway. I have bought houses where that wording was in the contract and I decided I didn’t want to pi$$ off the seller, so I went ahead and paid cash.
Whenever the contract calls for cash and I’m going to use financing, I make sure I have the cash ready just in case.
As for the ethical side- I don’t think it is unethical, so long as I’m willing and able to pay cash. I WOULD feel I was being unethical if I was doing this to defraud the seller.
Re: Ethics Question about, CASH OFFERS!!! - Posted by Sean
Posted by Sean on July 18, 2003 at 14:21:14:
Not at all, I offer ALL CASH offers all the time with my HML being the source…
ALL CASH, doesn’t mean you aren’t going to get the cash from another source, just at the end of the day means that you aren’t making the deal contingent on financings… so if you don’t show up with the cash, because your lender fell through, you just don’t get your security deposit back.
If you had a finance contingency, then since your financing fell through, you would get your hand money back…
All CASH is the best unquestionable way to make offers on institutional properties, in my experience.
Best of luck.
Re: Ethics Question about, CASH OFFERS!!! - Posted by Mike Waters
Posted by Mike Waters on July 18, 2003 at 14:21:14:
I make cash offers all the time that I use Hard money to buy. I wait until their is a counter offer and once I get the bank where I want them I put in a clause that the source may be cash or a loan because the bank has raised the price on a counter offer or 2