Cash for Real Estate – Podcast Episode & Article

Holding Real Estate – Podcast Episode & Article by Daniel Boyer
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Cash is king.  Right now, cash is a home buyers biggest advantage, but with the economy being the way it is no one seems to have any cash.  Many people are looking for small investments on the side.  It is not that difficult to find 5 or 10 people who are willing to put up cash for a small return on their money.  The banks are paying absolutely nothing right now on our money.  So, if I could get a 5-10% return on my money I would be ecstatic.  So, if I am a first time home buyer and need help with a down payment, what about asking for cash (or in the real estate market we call it hard money).  You can get a much better interest rate on your home purchase if you have 20% down.  It may be in your benefit to borrow the 20% down from your parents, grandparents, or friend.  You can offer to pay them back with a 10% interest rate and both parties are happy.  It is a little bit higher interest rate than what you may get from the bank, but with the difference in your home rate it may be worth it.  Just make sure no matter who or where you borrow the money from, you need to pay it back.