If you are in the market for a distressed house in the Detroit area, we can help! We work with investors every day to help them find the perfect property. In our latest post, learn a few of the reasons why you should pay cash for your next distressed house in Detroit.
Paying cash for a distressed property is ideal. Especially seeing as most traditional lenders don’t typically provide loans for such “risky” properties. While it is possible to find a loan from certain types of lenders, you will likely be paying a good amount of interest. Below you will find some of the other benefits for paying cash for your next distressed property in Detroit!
Reason #1: Lower Your Monthly Expenses
One obvious reason to pay cash for a distressed house would be to lower your monthly expenses. Imagine buying a house, fixing it up, and not having to pay another dime towards mortgage or interest. You would be free to live in it, resell it or rent it out, with the majority of the rental income being pure profit. In turn, you can take the money you would be spending on the mortgage and reinvest it elsewhere! For many people, not having a mortgage payment would be a dream come true!
Reason #2: You Will Make The Seller Happy
Sellers love cash buyers, especially when they want to sell a Detroit house quickly. When you pay in cash, you will gain bargaining power as the sale will not be contingent on a lender and their red-tape. By paying in cash, you will be able to offer the seller a fast closing, ultimately saving them a ton of time and money. Sellers will often favor cash buyers, which means you will likely be able to get more bang for your buck.
Reason #3: Instant Ownership
Are you buying the house for yourself? If so, you will love the sense of pride you will feel from instant ownership. There is something truly wonderful about owning your home outright. People love knowing that the property is all theirs, without a bank making any claim to it. Having instant ownership will also free you up to take out a mortgage on another property if you so desire without having to worry about juggling two mortgage payments each month. Plus, you won’t have to wait around t take ownership of the property. When you pay in cash, you don’t have to wait on a lender. You can purchase the property and begin any necessary renovations right away!
Reason #4: Save Money On Interest
Let’s say you buy a house and take out a mortgage with 4.5% interest. That can add up to thousands of dollars over the years! By buying a house directly, you will be able to keep all of that cash you would have otherwise spent on your mortgage interest. This can be a huge cost savings!
Reason #5: Keep Up With The Competition
Investors are often the buyers of distressed properties in the Detroit area. Most investors pay in cash because they know it is the fastest way to get the job done. They will likely have an edge over someone that needs financing to buy the house. Financing will require more time and more red-tape. The last thing a distressed seller wants is more hoops to jump through.