It's cash, right?
I don't know what your state contract looks like, but here in Arizona, there is basically a section that says: financing or cash.
Several years ago I worked with a very savvy investor and when writing a contract I just put "cash." He requested I change it to "cash or line of credit funds."
The reason-he once had a property under contract, wrote an offer saying cash, was unable to get the "cash" and lost his earnest money.
Now, while most line of credits allow you to easily pull cash out, what if there was a restriction?
If you are a buyer, I would hope your agent makes sure the offer is correctly written to protect you.
If you are a seller-I would hope your agent does their due diligence to confirm what the offer is.
I can remember the REO days, when many investors were sending over "cash" offers, I would ask for proof of funds-and it was line of credit funds. Had the deal gone south-you can be assured I would have fought for my client to keep the earnest money.
Moral of the story-be complete and thorough with your offers, and due diligence. Agents-write offers with the correct sourcing of funds.
Hope you found this helpful...and if you are thinking about investing in Arizona real estate, I love cash investors :-)
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