You have CASH? Prove it!
I was a single mom and the sole support of five young girls. Three months of having a real estate license, working at a local Re/Max office, I was hustling to make deals happen. Excited and motivated but still naïve to the intricacies of “protocol,” I was stoked to get a referral from an old friend.
The prospective Buyer had $350,000 cash, and wanted to move as soon as possible. They needed a house big enough to accommodate my client, her daughter, mother, sister and grandkids, all of whom took turns each day riding along in my new car in the blazing heat of summer, looking at potential homes.
Hot and tired on our third day out, having looked at dozens of houses with a swarm of people, I pulled in to a local 7-11 to get something to drink. I asked my client if she would like for me to get her something. She said, “Oh, yes, Mimi, would you be a dear and get me a lottery ticket? It’s the only way I will ever have a chance to purchase one of these beautiful homes.”
While we learn the basics of contracts in the classes we take, our true education in real estate starts after the exams are over. Believe me, no one gets in my car to look at houses now without proof that they have cash in the bank or the potential for a loan.
You have cash? Prove it! was written by Mimi Foster
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68 Comments on You have cash? Prove it!
Mimi - excellently written blog on the importance of verifying. We sometimes see people in the lending side who tell us they have the down payment, but when we seek to verify - they can't seem to find the documents.
Mimi: Thanks. These days, everything has to be proved. It's good that it's this way. No one wants to waste their time!
Mimi- I have yet to ever have a cash buyer that truly had the cash. So many times, my heart leaps when they tell me they are a cash buyer but everytime it comes time to provide proof of funds all I hear are crickets ............
funny post! nice to see it featured
Hi Mimi, Yikes, some of our best lessons come shortly after we gasp for air !
Mimi, I know you have 5 daughters to support, and gas is $4.00 per gallon, but could you drive to VA and drive me around so I can look at houses? I don't have cash and can't get a loan, but I'll buy you a soda and a lottery ticket for your trouble. Just for one weekend, then you can drive back to Colorado.
I never did figure out what she was thinking, Pam. To this day I STILL don't get it.
So right, Alan, and thank you.
Oh, Dawn, I felt your pain! Amen, sister, to be on THIS side of that lesson!
Priceless, Mimi. What a colossal waste of our time, eh?
People just don't get it.
Not even an hour again, Eric. I learned my lesson.
The REFERRAL was from an old friend, Judy. Honestly, I didn't really HEAR (absorb, comprehend) until I was standing in line in the store. I couldn't wrap my brain around what it meant. NEVER NEVER NEVER NEVER would have occurred to me that we could be doing what we were doing without her having the CASH. Never like to think that I'm naive, but couldn't imagine WHY someone would do that! Still don't have any idea.
More than we'd care to admit, huh, Maggie?
Isn't that amazing, Steven? I just don't understand WHY THEY BOTHER!?
Everything, Paul. But why do they want to waste THEIR time?
Thanks, Kim. And I find that when you ask them to verify, they get very condescending. So so funny . . . only not :))))
that is too, too funny, Bill. It took me a few minutes to gasp, however, because I just couldn't wrap my brain even around the CONCEPT! What were we doing there? :)
Right, Jeff? But she wanted ME to buy the soda and the lottery ticket! And the really FUNNY thing was - every day it was a different group of them, but always at least 3 young kids. Was I babysitting? Were they looking to keep the kids occupied? Who would think THIS would be a good way to do that? :)
They really don't, Erica. HUGE TIME SUCK :)
Talk about learning the hard way! Most people think real estate agents get an hourly fee from their company....I'll take a referral out once without a lenders letter or proof of funds, but never twice.
Well, look at you with all those pretty gold stars. They look good on you. And, I think I would have burst into laughter when that clients said that followed by a trip back to her car or home. You're a smart lady, Mimi Foster. "Show me the money!"
That is the way, since that day, that I have worked it, Yvette :)
Well thanks, Mike (blush) . . . how funny is THAT, and it's not even Saturday :))) . . . honestly, there was no laughter, no anger, no recriminations, no feeling but numbness until later. I believe that is what SHOCK is :) I kept thinking, "So wait, WHY have we been looking at houses?" Why have I been carting these kids around for the past 3 days? I was too 'on the verge' to open my mouth and ask - you know, didn't want to be charged with assault or anything :) so I never did find out. From that day forward, it has been pure speculation, but I didn't ever want to see her again
Mimi, Congratulations on the Gold star for the article, to bad it took a kick to your back side to get it. I have been down that road and trust me you will not forget that one anytime soon. But the positive this is you learned a big lesson in the game of real estate.
I once had a "cash" buyer go all the way to contracts before they disappeared. Another on one of my listings made the seller jump through hoops and never signed. I think it is, in some cases, a form of a mental illness.
thank you, Steve. Yes, and in the scheme of things, it was not too painful a lesson. Just an AMAZING lesson - but one not forgotten even remotely in almost two decades :)
You know, Phil, I have to completely agree with you. At the time, and every time that I have remembered her, I have often thought that she was mentally ill. The question was, how about her daughter and grandkids and mother? :))))
Truth of the matter is, Karen, I spent a long time being embarrassed for being so stupid - what I call a ROOKIE MISTAKE. When I mentioned it later at the office, everyone treated me like I was the ignorant newbie for not checking. Looking back on it, I have often wondered how many of THEM would have checked. :)))))
This is not a rookie mistake I see agents that are doing it all the time. No broker agreement or LSR or proof of funds no get in my car.
GREAT POST
thanks so much, Jack. I am, however, glad that I learned it as a rookie :) Totally agree . . . NOW (obvious lesson learned)