Selling To A Cash Buyer

What Do You Need To Know?

There are a lot of people who claim to be “real estate investors” or “cash buyers” but do not have the ability to perform on the promises that they’re making to sellers.

In reality, they’ve watched a few videos online and have little to no experience buying houses.  They are wholesalers who use deceitful tactics in an attempt to take advantage of homeowners to make a quick profit.  

Wholesalers do not intend to close on the property but hope to resell the contract for a profit.  If they are unable to find an end-buyer, they will simply cancel the contract and disappear… leaving the seller disappointed and wasting valuable time.

Follow these tips and you are likely to find a true cash buyer.

Always Ask For Proof of Funds

This should come from a current bank statement. Cash buyers have actual cash on hand.

Watch Out For “And or Assigns”

The usage of this phrase as a part of the buyer on a contract is a red flag that the “buyer” intends to try to flip the contract rather than close on the transaction.

Ask If They Intend To Close or Resale the Contract

Wholesalers are not used to dealing with educated sellers and will quickly show their true intentions. 

Never Allow For An Inspection or Option Period

Professional real estate investors know what they are doing and do not need clauses in their contract that allow them to back-out or cancel.

Earnest Money Deposit of $5,000 Minimum

Earnest money is the guarantee that the buyer will close or the deposit money is yours. Serious cash buyers have no problem putting down large earnest money deposits.

Closing Date of 30 Days or Less

Legitimate real estate investors can close as quickly as title is cleared and this process should not take more than 21 days.