Buy an Oakland, Piedmont Berkeley home with cash now and finance it later

October 19th, 2013


Delayed financing is as good as all cash.

Needless to say, the Oakland, Piedmont and Berkeley real estate markets are super heated.  Low inventory and pent up buyer demand combined with low interest rates are making for heavily competitive environment.  Even when a Buyer steps up and offers a seller thousands, tens of thousands or even hundreds of thousands over their asking price it may still not be enough.  It may come as a surprise but all cash purchases have become common place.  While All Cash isn’t an option for many it certainly is a way to gain a leg up on the your competition.  But what if you don’t want to tie up that much cash in one single asset?  Enter… Delayed financing.

Delayed financing is basically a post closing loan on a property that you recently purchased.  In the past this type of financing was considered Cash-Out refi’s which carry higher costs and rates.  These days there are lenders offering loan products and programs that allow a home buyer to purchase a home with all cash and recoup a large portion of the money through a post closing loan.

Post closing loans or “Delayed Financing” is particularly attractive because it allows a Buyer to compete with other aggressive home buyers and yet still capitalize on today’s historically low interest rates.  Considering the fact that these post closing loans do not require many of the fees and costs associated with traditional cash-out refi’s, this just may be the way to maximize your buying position as well as minimize your long term costs.  Sounds like a winning combination to me. Brian Santilena

Brian Santilena is a licensed real estate professional, Realtor and member of the Council of Residential Specialists.  He works with Pacific Union International Real Estate serving the home buyers and home sellers in the areas of Oakland, Piedmont and Berkeley California.

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