Real estate investing couldn’t get much more competitive than it is today. Increasingly low inventory puts sellers in an advantageous position and has investors struggling to act fast enough to secure prime real estate deals.
In this environment, buyers are finding it much easier to purchase property by securing an easy cash loan online or a fast real estate investment loan instead of traditional mortgages. In other words, cash is advantageous for many reasons. Here are the top five.
Reason 1: Homes are selling at historically fast rates.
The average home is selling in just 18 days (as of May 2021). In fact, many houses are selling even faster. Approximately 58% of houses on the market take two weeks to sell, while 45% of homes are sold within one week. In Scottsdale, Arizona, the average amount of time to sell was anywhere from 10 to 29 days in May.
In comparison, the mortgage underwriting process can take between 45 and 60 days. In today’s market, that is a snail’s pace.
When homes are selling at such a rapid rate, cash is a far more advantageous purchasing strategy than opting for traditional mortgage loans that force sellers to wait for 2 months or longer before seeing the funds from the sale.
Reason 2: Housing inventory is low.
Incredibly low interest rates have resulted in more people purchasing homes now than ever before. This means there are fewer houses available to buy. In other words, housing inventory is incredibly low.
- As of April 2021, the nationwide inventory of available homes had dropped by 53% compared to one year ago.
- In May, there were 523,000 fewer homes available nationwide than there were in years prior.
- Scottsdale and Maricopa County, AZ are experiencing record-high rates of people
moving into the area. With around 250 new residents arriving every day, inventory
is becoming even more sparse as the population soars.
With fewer homes available, it’s critical to submit a competitive offer immediately. An easy cash loan online puts investors in a more favorable position with cash on hand compared to buyers depending on conventional financing.
Reason 3: Distressed properties are running low.
Foreclosures are down by 17% this year, and less than 5% of mortgage loans are
delinquent. If you’re an investor specializing in fix-and-flip renovations or your strategy has been purchasing low-cost properties to sell at a profit, your buying opportunities are harder to come by in today’s market.
This means that on the rare occasion that a foreclosure does come up, it’s extremely difficult to get an offer accepted. As a result, many investors are using fast money loans and short-term cash advances to compete.
Reason 4: An all-cash offer improves the likelihood of landing the property.
Not only does an easy cash loan online increase your chances of buying property, but an all-cash offer can make it 97% more likely that your offer will be accepted. In a luxury market, cash improves your chances by 438%.
Part of the reason all-cash offers expedite your chances of landing property is that sellers prefer cash over traditional financing. With a cash offer, sellers don’t have to worry about financing falling through or other roadblocks that tend to arise along the way. Deals are finalized much faster with cash offers, meaning sellers get paid in full much earlier—which people strongly prefer, especially if they’re waiting on the funds to purchase another property.
This is why 36% of all homes in the U.S. are being sold to cash buyers today, and the percentage of all-cash purchases is up 3% in the Northeast and 2% in the West compared to a year ago. Having cash on hand can determine whether or not your offer gets accepted.
Reason 5: There is a limit to the number of mortgages you can have in your name.
If you’re an investor trying to take advantage of the equity gains that the current seller’s market offers, then you likely already know about the mortgage limit. Most people can only have 4 mortgages in their name at any given time (technically the limit is 10, but the rules get much stricter when you surpass mortgage #4).
This is exactly why so many investors opt for alternative financing, including applying for an easy cash loan online. It’s a quick way to secure the money you need to purchase property in full.
Buying a house is simpler with an easy cash loan online
Today’s market moves fast. That’s why buying a house with cash is an attractive option for many investors. Sellers prefer cash offers, and with low inventory and competitive bidding, cash gives you a clear advantage.
With the Cash Source, you can secure a deal faster than with traditional financing. By obtaining an easy cash loan online through the Cash Source, you won’t have to wait weeks for the mortgage to clear underwriting. In fact, you can typically fund your purchase within five to ten days of requesting the loan. Don’t miss out on a fantastic real estate opportunity because you don’t have the funds on hand. Apply for an easy cash loan online with the Cash Source for fast approval so you can start submitting offers right away.