Cash is King - What is it
For the next video in the What is it video series I will be talking about Cash is King.
This program will solve the problem of buyers struggling to get under contract when there are multiple offers by pushing them to the front of the line with our cash offer! Until recently, there has never been a need for a program like “Cash is King.”
Our “Cash is King” program addresses the following issues we see in today’s Real Estate market:
1.Financed offers very often are not strong enough to secure a property.
2.Cash Offers are now taking priority.
3.People are even becoming hesitant to list and sell their homes for fear they will not find a home to buy; but not anymore, thanks to AmeriFirst’s Buy/Sell program!
Program Terms and Conditions:
AmeriFirst Financial is the buyer of the home your client wants to buy with a cash- offer. For qualified buyers, AmeriFirst will provide proof of funds to accompany the offer. As their Realtor, you don’t have to get too detailed with your clients. We will go into more detail with your buyer. You can simply let them know the gist of the Buy/Sell program: We secure the home they want by paying cash for it, we then do their loan right after.
Minimum down payment from buyer is 6%, which acts as earnest money, and is
then applied to the post-purchase loan transaction.
If AmeriFirst does indeed buy the property, the agent’s commission is held back
only until the post-purchase loan is closed, usually about 2 weeks after the initial purchase is made by AmeriFirst. (If borrower puts down 9% then agent commission will not be held back, but immediately paid to the Realtor after the initial purchase.)
After the quick cash purchase by AmeriFirst of the home, 8% interest is charged on the amount financed, but only until the loan closes. Example: let’s say the home we’re paying cash for is $400,000 take that amount and multiply by 8% then divide that by 365 so looks like this 400,000 times 8% is $32,000 divided by 365 is 87.67 per day. Let’s say it takes 12 days to get the financing completed the interest cost would be $$1052.
Buyer to pay 1.5% above the sales price for the purchase of the new home under this program. This is done by raising the asking price, which allows the fee to be rolled into the loan. This 1.5% fee is similar to a funding fee borrowers would pay with loan programs such as FHA, which charges 2.25% in a funding fee, or VA, which charges a first-use fee of 3.6%.
Buyer to cover any appraisal gap amount at Closing.
Purchase price up to $580,000 with 6% down and buyer lease-back agreement.
Purchase price above $580,000 will be considered on a case-by-case
basis, but will typically require more than 6% down from the buyer.
How to submit your Trade in clients. The first step in the process is to have me get them approved for their financing. Go to the Protect Your Transaction What Is It video and follow the steps. If you’re a licensed RELO agent then you’ll have them complete the application using your personal unique link then after uploading their documents I will take over and run them through PYT. After that is complete time to write offers. I’m Ricky Khamis CEO of the Khamis Group and National Business Development Manager for Amerifirst Financial.