When it comes to hard money loans, and REO properties, in the past few months, there has been a major change that many have not taken note of. Many buyers are still claiming to be ‘cash buyers’, and when the time comes to present the closing HUD to the seller, they are rejecting some of them as they feel the borrower has misrepresented themselves in the transaction.
Many buyers and their realtors feel that only cash buyers are getting the properties. This is not true. Get youself lined up with a hard money lender before you get a property under contract, let the hard money lender know how much of a down payment your working with, and then let the hard money lender tell you what price property you should be looking at to purchase.
As a real estate investor, do you really want to go through the whole process to find out at the last minute the seller has rejected the final HUD becasue your bringing financing to the table? At that point your left scrambling to figure out what to do, or where to get the cash to close.
Isnt it better to be honest from day one, tell the seller you have funds in place for the purchase, make sure the contract is done correctly, rather than having to go back, amend the contract, and pay a per diem?