Cash offer

**mw-Florida** · 07-30-2008, 06:28 AM

Other than closing cost, is there an advantage to a cash offer on REO property?

**REbuyersgroup** · 07-30-2008, 06:53 AM

Banks like to know that the property will close. So a CASH offer may have more price flexibility, since you can close quickly.

If the property is financed, besides the additional costs to the buyer, the bank will also experience risk that the buyer may fail to perform.

Buy it CASH and re-finance it within 60 days. Discuss the laws about tax deductions with your accountant.

**Mike Taylor** · 08-02-2008, 03:08 AM

Craig is right, the biggest advantage of a cash offer is the fact that the seller is guaranteed there are no issues with financing. These days that is a huge deal. Most sellers are willing to take a little less when you present them with a cash offer.

**JimTrail** · 08-02-2008, 12:58 PM

Originally Posted by mw-Florida

Other than closing cost, is there an advantage to a cash offer on REO property?

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No. Either way it's all cash to the seller. The issue regarding a cash offer, in my opinion, is the veracity and the salt of the buyer.

Believable buyer: If I were the banker who owned the REO and I had confidence that the buyer was telling the truth about his ability to qualify for a new loan or his ability to pay cash it would make no difference. The buyer would produce cash either way.

Questionable buyer: If I did not believe the buyer when he said that he had all cash I wouldn't believe him when he said that he could qualify for a loan.

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