All cash offer for a quick sale...

If you want to sell your house fast in today's market this is no quicker way other than selling it to a cash buyer.  Real Estate investors that have cash can close very quickly sometimes in less than a week.  As active real estate investors, McP Capital Investments, LLC, is not only a cash buyer, but we have access to a network of other cash buyers.  A cash buyer will typically cover all closing costs, close quickly and could even make up missed payments.

So what is the catch?  Nearly all cash buyers are investors, so they are looking for properties that they can buy at a discount (typically 65% of ARV (After Repair Value) ), fix them up and resell/rent them.  Believe it or not there are plenty of homes in America today that still have equity even in this down economy.  If you home does not have equity and you DO NOT want to bring cash to the closing table then an all cash offer is not your best choice.

Why would a cash buyer only pay 65% of the ARV?

The cash buyer will have to pay the following expenses:

• Closing costs on the purchase (2%)
• Commissions on the resale (6%)
• Closing costs on the resale (3%)
• Monthly carrying costs until the home is resold (~4-5% typical)
• Repair/Remodel costs ($10,000+) - Remember that items that you may "live with" a new home buyer will want to be corrected.  A cash buyer will make the necessary repairs to bring the property back to "retail ready".

Total expenses range from 15 - 20%.  The cash buyer also will re-sell the home for around 90 - 95% for the ARV to move it quickly.  Cash buyers only make money when they sell/rent, so we need to move them quickly.  So, after expenses the cash buyer is left with a modest profit average 10 - 15%.

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