Fan Mail Request: Competing Against Cash Offers

MLO | Mortgage & Real Estate Podcast

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How can anyone Compete with a Cash offer?

1. Understanding different types of "cash offers" - not always literal cash, can be from hard money loans, lines of credit, 1031 exchanges, etc.

2. Tips for making a competitive offer as a financed buyer:

- Submit offers quickly, with a short timeline (e.g., 24-hour response)

- Minimize contingencies and inspection periods

- Offer higher than list price but ask for seller credits to cover closing costs

- Work with a lender who can close quickly (e.g., 2 weeks)

3. Exploring alternative financing options to compete with cash buyers:

- Cash buyer programs that provide upfront cash, then you refinance

- Bridge loans using equity in your current home

4. Importance of being prepared as a financed buyer:

- Get pre-approved, have documents ready

- If selling a home, make sure it's ready to list quickly

- Understand debt-to-income ratios and loan program limits

5. Strengthening a contingent offer by putting down earnest money, shortening timelines, etc.

6. Recognizing that even with financing, you can be competitive by understanding the market and working closely with your agent and lender.

Mikal Mele
Loan Officer & Mortgage Advisor
NMLS 963197

Casey Carpenter
Loan Officer & Mortgage Advisor
NMLS 1458123

Addy Nett
Loan Officer & Mortgage Advisor
NMLS 1542184

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