Cash Buyers

What it is

Cash buyers are investors who buy property with their own money or fund-held capital rather than a bank loan. They close in seven to fourteen days, waive financing contingencies, usually waive appraisal, and often buy as-is. They are the end market for wholesale deals, wholetail flips, and any property that won’t finance conventionally — foundation issues, unpermitted work, no kitchen, tenants in place.

Why it matters

A cash buyer changes the math on the exit. You don’t need the house to appraise. You don’t need it to pass FHA inspection. You don’t need sixty days of escrow. That speed is worth real money — enough that cash buyers expect a discount off retail, and that’s the trade. A retail buyer with an FHA loan might pay ten percent more but take ninety days and renegotiate the inspection. A cash buyer at a ten-percent discount puts you on to your next deal in two weeks. Which is worth more depends on your pipeline — if you have three deals waiting, the cash buyer wins every time.

How it shows up

You find cash buyers at local REI groups, through title-company relationships (they see who closed cash last month), through the Register of Deeds (all cash transactions are recorded), through wholesalers who move them inventory, and through your own past buyers once you’ve sold one cash. Build a list, keep it warm, and call first before the property hits the MLS. The list is an asset.

Related

wholesale, wholetail, cash recycling, supply and demand, relationship capital, foreclosure, close the deal