Hey friends, Eric here with CamShell. In today’s video, it’s all about cash….cash home buyers in Cleveland Ohio. That is, we’re going to be going through what a cash buyer is, if it is a correct move for your situation to look at a cash offer, how to find cash offers if you decide that it is the way that you want to go, and then, how to vet those cash buyers to make sure that they will do what they say.
So, first off, what is a cash offer? A cash offer to a seller, which is you in this situation, is pretty similar to using traditional financing as far as the end result. If I go to a bank, I want to buy your house, and I go to a bank and get a loan, at the end of that closing period, you’re going to be wired money into your account, you’re going to be getting cash. Same thing with a cash offer.
Cash offers just mean that I’m not going to a bank for that financing, but at the end of the day, at title, you’re going to be getting cash deposited into your account or however you want. You get a check, they’ll pay in small bills I’m sure if you want. But, at the end of the day, you’re still getting that money. A cash home buyers offer’s just quicker because I don’t need a formal inspection. I’m not a bank that’s going to send an inspector out. Most cash buyers in Cleveland here — I’m going to go walk through your house, I’m going to basically take a note of my repairs, I’m going to run my numbers, and I can give you a cash offer based off of what I can sell it for after I repair it, as well as what repairs are needed. So, it’s basically your after-repair value, minus repairs, minus investor profit and closing costs. Cash offers are easy. Again, there’s very few walkthroughs.
We’ve even bought houses site unseen, so there may not even be any walkthroughs. But the benefit of selling your house with a cash offer is it’s quicker and easier, and a lot less hassle for the seller themselves.
Is a cash offer right for you? That’s a good question if you’re looking to sell a house, and that really depends on your timeframe. Cash offers are best used in a hurry. If you have three to four months, and you don’t need the money, just list it with a realtor. If it’s in good condition, you’re going to end up getting more money from a realtor than you will any cash offer because a realtor is using traditional financing with their client. They’re able to make payments on it, so they can pay more over time, as opposed to a cash offer, which a lot less people have that amount of money. So, you’re just going to make less off of a cash offer on the overall sell price.
If you need the money in two weeks, I probably wouldn’t worry about making a few extra grand putting it on market. I need it to close quickly, I’m going to need to use a cash offer or seller financing in that position, which we do as well. But you’re really going to want to use it if you either just can’t be bothered to do the showings or if you need the money quickly. So, cash offers certainly have their place in those situations.
The third thing that I wanted to talk about is finding cash home buyers. It’s not that hard, trust me. You’re not going to look in the yellow book and find them, but you can Google, “We buy houses, Cleveland,” or, “We buy houses, Phoenix, Arizona,” or, “We buy houses, Los Angeles, California.” Most of those results are going to be cash buyers. Some of them may be wholesalers, which I’ll get into vetting here in a little bit, but most of those at the top are going to be cash buyers in the area. They’re going to be investors, companies that basically are looking for properties at a discount, and they’re willing to pay all at once to get that discount.
It’s not that hard to find them on Facebook. You can find them on Craigslist, just type in, “We buy houses, cash buyers in your city,” and you’ll have a plethora of them. Or, if you want, you can call me. I’m a cash buyer as well, and I can definitely help you through it.
And then, the fourth point I wanted to talk about, and this one’s really big, this is probably the biggest thing that I would tell myself if I was looking for a cash buyer, is they need to be vetted. I’m going to tell you a quick story about a guy whose name is Dan. Last name was an M, we’re going to call him Dan M. He lived five minutes away from me in a beautiful neighborhood, nicer than mine. Nice house, it was probably, I don’t know, redone 10 years ago. His ex stopped paying on it and he just learned he was about to be in foreclosure within a few weeks, so you have very little time to make a decision in Dan’s spot. I went to walk it, I agreed to his price right then and there.
And then, he called me back a little bit later saying a different cash home buyer blew my offer out of the water, which I just couldn’t compete with the guy. Went up $25,000 on my offer, which is what Dan was asking. He asked for 150. I offered him 150. The other guy came back at 175 when he heard there was someone else bidding on it. Dan went with that guy, didn’t vet him. The guy turned out to be a wholesaler who couldn’t close in time. By the time I heard back from Dan, it was already sold at foreclosure. So, it’s not anything to play around with. If you’re in a rush to get it sold, or else you’re going to lose it, you have to make sure these guys are vetted. Vetting is easy. Online presence, do they have a website, can they show you the last few deals that they’ve done, do they have a portfolio of deals; buy and holds, flips. Whatever that they’ve done, you need to be able to see them on the deed to make sure that they’ve actually agreed to sales in the past that they’ve performed on.
So, you probably don’t want to mess around with the first-time cash home buyer if you need it done quickly. Even though that guy’s number sounded great, it was 25,000 more than mine, Dan lost the house for nothing. Zero. And His credit’s screwed for seven years because he didn’t vet the guy. And then, the other thing for vetting would be your proof of funds. So, if I’m going to offer $150,000 for a house, I will have a proof of funds saying Eric is approved for $150,000 on this address, or I can show you a bank statement that has $150,000 in it. Whatever you want, or whatever the buyer is able to provide, you need to be sure that they have the money ready to go quickly. If it’s time-sensitive, then the proof of funds is completely irreplaceable in the transaction. So, just basically, what have they done in the past, show me your work, let me see the money, and online presence would be the three things that I would check for just to make sure that the guy is not going to cause you to lose your house for nothing like Dan did. Those would be my four tips on finding cash buyers. I am personally a cash buyer. I do seller financing, I do basically anything an investor would do. So, if you do have specific questions on it, feel free to call me. I’m happy to help you vet anyone. Even if you’re not in my area, I’m happy to try and find a legitimate cash buyer for you. Or, if you are in my area, I can get you a cash offer within 24 hours. Call me, email me, text me, whatever. I will talk with you guys next week. I hope you enjoyed the video, and I will see you soon.