Riverside County Real Estate Investor Acquires Property Listed As “All Cash Offers Only” Using Hard Money Financing from First Capital Trust Deeds.
It’s common to see real estate listings with the phrase “All Cash Offers Only” for properties that either cannot qualify for conventional financing (missing kitchens, extensive mold, pipes and electrical wiring has been stolen, etc) or by sellers who need the property to sell quickly (short sale deadline fast approaching) and cannot wait the 30-45 days needed to close a conventional mortgage.
We’ve worked with several real estate investors over the past few years who have acquired these “All Cash Offers Only” properties using a hard money loan to close the transaction. Which makes me think, the listing agent might want to change the verbiage to “All Cash Offers Only” And/Or “Hard Money Financed Offers Only”.
Most experienced Realtors and real estate investors know that sellers will gladly accept a hard money financed offer as long as the transaction closes on-time. Hard money loans, in most cases, are almost as good as cash because the loan can close within 3-4 days, rather than 30-45 days like a conventional loan.
For this “All Cash Offers Only” listing in Riverside County, the buyer took out a $235,000 hard money loan with a one year maturity / balloon payment and close within four days.
Hard Money Financing Terms:
- $235,000 Loan Amount (75% LTV)
- 12-Month Term
- No Prepayment Penalty