Sep 20, 2023
Farah Sutton is a licensed Realtor based in Arizona. It’s a state that’s seen an increase in cash offers, thanks to buyers moving in from more expensive markets where they cashed out on the sale of a home. However, she’s also witnessed cash offers that are actually hard money loans, where an investor puts up the cash, and a developer or flipper pays it back once they turn around and sell the property.
“These types of loans are frequently used by flippers, as they can be funded in three to five days,” explains Sutton. “The drawback to hard money loans is that they have much higher than market interest rates and are only for short periods of time.”
Link to the full article: https://www.apartmenttherapy.com/what-is-cash-offer-37305446