Arizona Condos? Cash Only?

[2ndstory]

Actually in Arizona as I type this. Here on a little vacation but decided to do some real estate related things while I was here. Toured a couple nice and affordable condos here. Agent told me that condos here cannot be financed for investors. They need to be paid for cash. Anyone else hear that before? Any ways around that?

Nik

 

[JimWhitelaw]

Check out Philip McKernan`s book on this topic:

http://goo.gl/3R1a

 

[Rickson9]

QUOTE (2ndstory @ May 31 2010, 12:49 AM) Actually in Arizona as I type this. Here on a little vacation but decided to do some real estate related things while I was here. Toured a couple nice and affordable condos here. Agent told me that condos here cannot be financed for investors. They need to be paid for cash. Anyone else hear that before? Any ways around that?

Nik

You can get a mortgage, but you will lose out to cash buyers. There are a lot of Canadian cash buyers in Phoenix, AZ.

My wife and I have bought and are currently purchasing RE in Phoenix, AZ. We`ve gone up against individuals with financing "in place", but Sellers would rather deal with cash than take a flyer on Buyers who may see their bank pull out.

Another thing to consider is that my wife and I beat out a Buyer with financing in place even though our offer was significantly lower simply because our offer was for cash.

In short, you can get a mortgage (from Harris bank for example), but you will be behind a line of cash buyers. The agent is correct, unless you have cash, you`ll just be wasting a lot of your time.

It`s weird times down there.

 

[Thomas Beyer]

QUOTE (2ndstory @ May 30 2010, 10:49 PM) Actually in Arizona as I type this. Here on a little vacation but decided to do some real estate related things while I was here. Toured a couple nice and affordable condos here. Agent told me that condos here cannot be financed for investors. They need to be paid for cash. Anyone else hear that before? Any ways around that?

Nik
Much misinformation .. and one person`s opinion ! Hence do your own research .. and that includes at least 10 contacts for an asset purchase in AZ (lawyers, 4+ realtors, 4+ mortgage brokers, investment clubs, ...)

Likely many banks won`t touch condos in certain areas of town, or conversions, or product older than X years, or Canadians or or buildings with renters .. but: you need only one bank .. and not 37 .. the US mortgage market is very fragmented .. and thus a good mortgage broker is CRITICAL !

As a Canadian it is best to buy in CASH .. then add a mortgage later to get a better price !

 

[JimWhitelaw]

QUOTE (ThomasBeyer @ May 31 2010, 10:17 AM) As a Canadian it is best to buy in CASH .. then add a mortgage later to get a better price !
I like this idea - make the purchase as simple as possible and have maximum negotiating power. Once you own something you can do what you like with it. (Unless you`re in Ontario apparently, where you need your tenant`s permission to do just about anything...

).

 

[Rickson9]

QUOTE (ThomasBeyer @ May 31 2010, 12:17 PM) As a Canadian it is best to buy in CASH .. then add a mortgage later to get a better price !

Exactly!

 

[lilbuffet]

QUOTE (Rickson9 @ May 31 2010, 01:05 PM) Exactly!

Interesting concept.....is there a time period in which this can be done, or could be done right after the cash transaction is completed?

 

[EdRenkema]

Truth hurts Jim
Cuts like a knife!!
QUOTE (JimWhitelaw @ May 31 2010, 10:28 AM) I like this idea - make the purchase as simple as possible and have maximum negotiating power. Once you own something you can do what you like with it. (Unless you`re in Ontario apparently, where you need your tenant`s permission to do just about anything...

).