Cash is king in a furious real estate market. Even well-qualified buyers who have solid mortgage guarantees will get beat by all cash bids time after time.
If only they had a bucket of cash sitting around so they could pay cash, too! Well, maybe they do, and just don’t know it yet. That’s because necessity is the mother of invention, and a new crop of investment companies are springing in to help.
One type of investment company will buy the house you want for cash, then sell it back to you at a more leisurely pace that allows you time to get your bank loan. Another type works more like a lender, giving you the cash for a fee, which you pay back when you get a mortgage.
Real estate agents who have helped buyers use cash-offer programs have said they’re beneficial for their buyers who qualify. But the programs have strict requirements, and are still not widely available.
If you’re interested, a first step is to contact me about such programs locally. Your pre-buying preparations are crucial, and you’ll want to make this arrangement well before you find the house you want to buy.