Why do home sellers prefer a “cash” buyer? Wouldn’t they get the same amount of $ as a check from the bank if the buyer has a home loan?
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When I buy run down properties to rehab into rentals almost all the sellers want a cash buyer. I have not found a traditional bank that will lend money for a house that needs rehabbing. Sellers will not even show a house if you are not a cash buyer. The way to get around this is to find a ‘hard money lender’. This is a person who has cash and will lend it for a higher rate than the bank for a short time until you can get a bank to lend you money on the property after you fix it or by borrowing against another property. Kind of like a loan shark but less leg breaky. Since sales of such houses go quickly, it is good to have a hard money lender on speed dial. If you have a 401K at a job, you can borrow against that for the short term as well and you pay your own account like 4% interest and pay it with payroll deductions all for a relatively small origination fee. Since you can pay that back early at any time, you can just do a quick out and back in to get cash for the transaction. I did that once to bridge over buying the next house for a few weeks while my other sale was pending.
Otherwise, like people are saying here, cash makes the sale go way easier as you don’t have to wait on funding that might not come.
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