HomeVestors Knows That All Cash Real Estate Deals Are Losing Popularity


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Investors who are paying cash for real estate should realize that they have less competition right now, as the number of investors paying with cash has dropped significantly. 

Dallas, Texas HomeVestors is the nation’s number one home buying franchise and has helped real estate investors purchase 50,000 properties over the years.  The company knows that all cash real estate deals are down, as both regular investors and institutionalized investors aren’t buying properties at the same rate as they once were.  The real estate investors who are still looking to pay with cash are going to have less competition and should be able to offer less than the asking value in order to complete the deal.

All cash real estate deals are down from 42% to about 38% in the second quarter of 2014.  This signifies that real estate investors are either pulling out from the market or are securing lender financing to pay for their investments.  The current state of an improving housing market and increasing property values have given investors a reason to wait by the sidelines before securing anymore deals.

The reduction in all cash real estate deals comes at a time where real estate investor activity is at a 3-year low.  While there are still some real estate niches, like rental property that are popular with real estate investors, buying distressed sales has reduced drastically.  Investors who are looking to secure an investment property with lender financing have a better chance of doing so now, as they won’t have to deal with other investors who are offering cash.

Another advantage of purchasing all cash real estate deals right now is that the level of competition allows investors to pick their own price and stick with it.  Investment properties that don’t have a great deal of interest from typical buyers should allow investors to place their offer and wait for a seller to accept it, especially if they are looking for cash.

Those who are offering all cash real estate deals should keep in mind that they can place a bid that is below the current property value, but still catch the eye of sellers because cash is still king.  While there will be sellers who stick to their asking price and aren’t worried about the form of payment, desperate sellers will still be excited by the concept of receiving cash for their real estate.

Investors who are looking to take advantage of all cash real estate deals should realize that they have more leverage at the current time.

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