Anonymous wrote:Rates are not high. 10% would be high.

Rates are extremely high considering how inflated purchase prices are.

6% wouldn't be high when you could get a SFH in upper NW for $150K, but 6% is extremely high when people want $800K for their house in BFE. Imagine paying $5,000 a month mortgage to live in Gaithersburg or Burke. At 2% you might consider it, at 6% I'd rather kill myself.

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Anonymous wrote:Many all cash purchases end up getting mortgaged immediately after closing. That's what we did.

How? Never heard that. Ever.

We bought the house with cash and the day after closing applied for a mortgage. It’s not complicated.

We just used an asset depletion loan from our brokerage and made an all cash offer. Way better terms/interest rate than getting a regular mortgage. Don’t even have to have earned income to qualify (we only have passive income ). Just have to have the assets to back it up. Approval was immediate.😁

Anonymous wrote:

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Anonymous wrote:

Anonymous wrote:Many all cash purchases end up getting mortgaged immediately after closing. That's what we did.

How? Never heard that. Ever.

Happens all the time. And lots of other people offer cash and get a mortgage before closing.

Mortgage rates are so high!
Will people really get a better return investing their cash?

I think yes (we have multiple investment properties all with mortgages) but my sister just bought in OBX and her financial advisor told her she might as well pay cash with what the rates are.

Rates are not high. 10% would be high.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Many all cash purchases end up getting mortgaged immediately after closing. That's what we did.

How? Never heard that. Ever.

Happens all the time. And lots of other people offer cash and get a mortgage before closing.

Mortgage rates are so high!
Will people really get a better return investing their cash?

Historically, yes, by a substantial amount.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Many all cash purchases end up getting mortgaged immediately after closing. That's what we did.

How? Never heard that. Ever.

Happens all the time. And lots of other people offer cash and get a mortgage before closing.

Mortgage rates are so high!
Will people really get a better return investing their cash?

Anonymous wrote:The rich get richer. This is what young people are up against and have been for a long time. All cash. All the time.

YES, the rich have been getting richer.
BUT, I and millions of others started out dirt poor and struggled to buy the first house, pay for kids schooling etc etc
JOE BIDEN made me and many cohorts rich with wealthy owning hard assets of stock/real estate. The values exploded.

BUT YOU AND ALL THE YOUNG PEOPLE WILL NEVER HAVE A CHANCE TO GET RICH IF YOU DON'T GET YOUR D_ _ M BUTS GROWN UP AND SUPPORT CAPTALISM. BERNIE AND THE SOCIALIST WILL MAKE IT SO THAT ONLY THE GOVENMENT AND CONNECTED WILL BE RICH, ALL OTHERS WILL LIVE LIKE EVERY OTHER PERSON UNDER SOCIALISM.

After Sandy, near my old house some buyer were showing up with their Chase Private Banker, Notary, Lawyer, Limo drivers and had a list of paid off homes that were damaged. They were literally, getting deed from bank, their driver would take owner, they have Chase hand, cash, lawyer would do transfer, and notary would check. Some elderly folks just signed over houses for cheap. Was kinda sad.

In Potomac it was 40 percent cash when bought in 2017. But remember a lot of these are trade up homes. And older buyers. And some buyers already are using their 750K mortgage deduction on other properties. My neighbors in Potomac a few have very expensive beach houses with mortgages. So buying a home at 6 percent mortgage that is not tax deductable is not that attractive as buying it at 3 percent mortgage in 2001 that is tax deductable.

Anonymous wrote:

Anonymous wrote:Many all cash purchases end up getting mortgaged immediately after closing. That's what we did.

How? Never heard that. Ever.

Are you kidding?

Anonymous wrote:

Anonymous wrote:Many all cash purchases end up getting mortgaged immediately after closing. That's what we did.

Yes, we did this too. Most wealthy people get mortgages.

Why are people so obsessed with all-cash offers? I swear this is some sort of agent gimmick to make buyers even more frantic and desperate with their offers. "Joan & Bob, you need to increase your offer because otherwise you'll never be able to compete with the all-cash offers. Put in an escalation clause promising to beat them by $300K."

Wrong name generation. Joan and Bob are the parents, or even grandparents, paying all cask for their kid's house.

Know stories where parents are purchasing (all cash) and then renting to children or charging an interest free loan (which children will likely receive back) or parents just straight up buying houses as gifts (not down payments whole houses).

Also know a few people who were early AI investors (like NVIDIA a few years ago) and cashed out of market and bought houses cash.

Choose your parents well folks!

Anonymous wrote:i know multiple peers (i'm in my 40s) where the parents have paid all cash and then the 40 something yr old family pays parent back at lower interest rate than current mortgage rates

Yea, well, that's great but under IRS rules the interest rates being charged better not be too much below market or the parents still have to pay taxes on the "phantom" interest not charged and the interest not charged is also consider a gift to the borrower and can trigger reporting obligations.

Anonymous wrote:

Anonymous wrote:Many all cash purchases end up getting mortgaged immediately after closing. That's what we did.

How? Never heard that. Ever.

Happens all the time. And lots of other people offer cash and get a mortgage before closing.

Anonymous wrote:Many all cash purchases end up getting mortgaged immediately after closing. That's what we did.

Yes, we did this too. Most wealthy people get mortgages.

Why are people so obsessed with all-cash offers? I swear this is some sort of agent gimmick to make buyers even more frantic and desperate with their offers. "Joan & Bob, you need to increase your offer because otherwise you'll never be able to compete with the all-cash offers. Put in an escalation clause promising to beat them by $300K."