Buying homes for cash is a great way to make money in real estate. The video gives insight into how this works. First, it is important to properly define the phrase. Cash home buyers are those who purchase homes without a financing contingency. You are not waiting for approval for a mortgage to buy a property, if you can offer hard cash for it immediately, then you are in this category.
This distinction must be made because, in a traditional financing agreement, the person entering the purchasing contract is only beholden to it if they get approval from the mortgage lender. If you are a cash home buyer, you have no such protection.
If you intend to sell the home to another investor, you want to make sure they also have cash. You must do your due diligence, which includes verifying the funding source for the eventual buyer.
The final thing to note is that you can call yourself a cash buyer even if you don’t have the money to buy a house in your bank account. You can clarify your position by stating that you and your partners or investors are going to purchase the house.
.
