No Seller Wants Cash – EVER!

Posted By: Bill Cook ICOR Blog & News,

Just got a call from a realtor.  She represents a homeowner who needs a quick sale.  The realtor said, “Bill, my client will only consider an all-cash offer.  We’re not interested in any of your creative razzle-dazzle deal structures, understand?”


Kim and I get a lot of calls like this.  I’ve learned not to say, “No seller wants cash – EVER – ya dingbat!”  Saying such would ruin the relationship and destroy the possibility of meeting face-to-face with the seller.


So what do you think?  Do sellers really want cash or could I possibly be right? 


In this situation, what if I immediately agreed to pay the seller’s $80,000 asking price – in cash?  There’s only one condition: The seller must put the $80,000 on her kitchen table, cover it with plastic wrap, and agree that once a month the seller, realtor and I will get together and marvel at the big stack of money plastic wrapped to the table.


Sure, this is a silly stipulation that no seller would agree to.  But why wouldn’t the seller – since the she’s getting exactly what she wants – cash –  agree to it?  Think hard on this.  It’s an important question to contemplate!


Maybe you say the seller is gonna put the money in the bank because it’s safe there.  But is it?  Right now banks are paying 0.3% interest on deposits.  But with the current 14% rate of inflation, the seller’s money’s buying power is actually shrinking by 13.7% per year.  You call this safe?!?


Maybe you say the seller is going to use the money to buy another house, or a car, or go on a nice vacation.  And this is my point!  The seller doesn’t want cash.  The cash is simply a conduit that allows the seller to get rid of something she no longer wants (her house), and get something she wants more (another house, a car, a nice vacation.)


Here’s another way to look at it.  The seller is using what she has (her house) to get what she needs (cash) to get what she wants (another house, a car, a vacation.)  Again, cash is just a conduit; it’s not what she really wants


If I can help the seller get rid of what she has and get what she wants – without using cash as the conduit?  Might the seller say yes?


Here’s a deal we did last year that shows this creative deal structure in action.  We met a lady who had a house in a neighborhood in Woodstock, Georgia.  Problem was, she wanted a home in the country, but because of poor credit she couldn’t qualify for a mortgage.  She needed to first sell her house and then use the cash to buy a country home.


We also knew an investor who wanted to sell a house in the country because it was too far away from everything.  We brought the two together and they simply traded houses.  They both got what they wanted and we got $10,000 from the investor for facilitating the deal!


Remember, there are a thousand ways to buy a house – cash is only one of them!  Bottom line: When sellers tell you they want cash, they’re lying.  Their goal is to use the cash to trade for something they want more.  Your job is to find out what that thing is and then help them get it.


How do Kim and I get owner financing when we buy a house?  We explain to the sellers that we’d gladly pay them 5.0% compounding interest secured by the property, which is a whole lot more than the miserly 0.3% interest the bank would pay them if we gave the cash to the sellers  for their house and they put that money in the bank.


Do you seek real-world real estate investing information?  Go to  It’s packed with free creative deal structuring techniques and strategies.  Bill and Kim Cook have been investing in real estate since 1990.  Their portfolio consists of single-family rentals, a small mobile home park, plus notes and options.  If you have questions, give Bill a call at 770-815-8727.