The Cash Out Program is simple. You don't want to wait, you want out of everything and to take your money and run. In other words you want the normal K-Mart cash sale. We do that, too. We do it like K-Mart does it. In order for K-Mart to make a profit, they have to buy from sellers at a good discount so they can sell to customers at a fair market price without the mark ups of other retailers. Why don't the manufacturers sell direct? Usually, because they are not set up to get the customers in the best way possible.
Why not use a Realtor (retailer)? Costs too much. If you use a Realtor, you pay 6% to 10% in commissions + 3% to 4% in closing costs + dropping the price to reflect comps in the area + 4% to 10% in price discount after that to get the property sold + any other incidental costs in the process, like waiting, and waiting, and waiting, and . . . This all adds up to between 13% to 24% off your price if it's already at the comps price.
We begin at fair market value as explained on the Sellers page then discount the property by 8% to 10% depending on the size, location, costs and market conditions in your area. You pay your closing costs for a net 11% to 14% off fair market value based on comps. That's cheaper than the Realtor route.
Here's the kicker. We let you keep selling your property for more money if you can until we close, instead of tying it up for 90 days to see if we can get our deal done. Since we are investors and will be bringing in our own buyer to take final title to the property, it sometimes takes us up to 120 days to close. Our buyers are usually those that can't qualify for immediate financing, realtors and mortgage companies don't work with them, and they don't have a huge down payment. Guess what? There's a lot more of them than the "qualified buyers". We have to take the time to put them through our program to get them to qualification stage to buy a home. That takes a little time. During that time, we allow you to keep your house on the market and try to sell it for more than we are offering. If you do, we lose. What we are doing is agreeing on a bottom line cash out price that you can get if you can't get more in the mean time. Don't stop selling, keep going for a bigger profit from somebody else. We understand you want more and this gives you a chance to get it.
Is there a risk? Yes. No sale is guaranteed until AFTER closing is finished. A normal contract takes your property off the market until the final closing date and even then it may fall through. During that time, you may have been able to sell it for more to someone else but you couldn't because of the contract. Think of it as a back up contract while your working to sell it for more money.
$3,000 Penalty Charge
We want you to be aware of this one contract point before we go any further.
Please understand that we will be spending time and money to get a final buyer
into your property. The buyer will come from sources you will NOT be tapping
into or even able to accept as they stand initially so there is no competition
with your sales efforts. This buyer will be spending several thousand dollars
to gain credit qualification to buy your home. Because of this, there is a
potential for loss on our side if you do not follow through with the contract
as agreed. At the same time we recognize that you would like to get more money
if you can. Therefore, we include, in the contract that, if you receive and
accept any offer equal to or less than our offer, we will allow you to cancel
our contract with us with NO PENALTY to you. However, if you receive and accept
any offer for more than our offer (even $1.00) you will be required to pay
us a $3,000 cancellation charge for the contract. Sounds Terrible? Let's look
at this. You have our offer and another person comes along and offers you
the same price. At that point you tell them you already have a standing offer
for that price but if they will pay you $5,000 (or $7,000 or whatever) more
you will accept their offer and ours will be terminated. Thus you've been
able to use our contract to gain an extra few thousand dollars and we have
received partial compensation for our losses spent to that point. If the Fair
Market Value (FMV) is $165,000 and the purchase price is $150,000. You would
still be able to sell it below FMV for $155.000 and make a better profit by
using our contract to boost the second buyer's price.
What's required?
1. Your property will be valued at the current fair market value for your
area.
2. The purchase price will be 90% of that fair market value.
3. You will be responsible for all non-recurring closing costs.
If this is acceptable complete the information form on the next page and
write in the comments section, "I want to cash out."
Go to the Sellers Data Input page
