Home Buying in Roseville>Question Details

Andrea Mahon…, Other/Just Looking in Stockton, CA

How does the process work for buying a condo with cash? Pros, cons, advice?

Asked by Andrea Mahoney, Stockton, CA Thu Feb 16, 2012

My fiance is from overseas and I have only recently moved back from living over seas for many years so my credit score is low due to inactivity (major error on my part). After speaking with many people in the industry, we have learned that we can't go the traditional route of getting a mortgage (fiance still earns an overseas income) but we have enough cash to buy a condo in California. We pay a ton of rent ($1200 for a studio apartment) and would like to buy a condo in the area rather than pay that high rent. Then, in a few years when we sort out his working situation and I have a great credit score, we can buy a home.

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Hello we just helped a couple from Germany accomplish the same thing! In many cases you will find that with condo purchases they can only be bought with cash. It depends on many different things if financing can be used i.e. pending litigation with the HOA (Home Owners Association) or too many rentals and not enough owners in the complex. If a condo can be purchased using financing then it depends on if it is FHA or VA approved? Again many times depending on the complex cash or conventional financing is the only two options available.

The fact that you have the cash to purchase now is fantastic with the property values being almost half of what they were in the boom 2003 - 2006. Condo properties were hit even harder than single family homes in terms of value. I have seen condos in some cases 60 -70% of what they were selling for in years past. You are a cash buyer which with the right agent is always a good thing never a bad thing. Your offer will stand out for sure if written properly. It is not just price only and paying all cash there are terms as well. We have listed and sold many condo properties if you would like to talk in more details on what to look out for and stay protected with a condo purchase please contact me we are here and ready to help!
1 vote Thank Flag Link Thu Feb 16, 2012
Andrea,

Great question. I deal with many Arabs who move here from the middle east. They sell their property in the middle east and bring their cash here and buy homes 100% cash. If you would like some additional information about the process, feel free to contact me direct at (916) 295-0071.

Ahmad Zeki, J.D.
Realtor
Realty World - Complete Real Estate
150 G. St #108
Lincoln, CA 95648
(916) 295-0071
http://www.ZekiHomes.com
Web Reference: http://Www.ZekiHomes.com
0 votes Thank Flag Link Thu Feb 16, 2012
My wife and I own a condo in the Foothill Farms area near Carmichael and Citrus Heights. (Manzanita and Madison ) We want to sell it. . We repainted all surfaces, put in a new tub in the bathroom, new flooring, new tile in entry, kitchen and dining, new carpet in living room and bedrooms, new interior doors, new fence on the patio. new dishwasher, new kitchen sink, new fixtures, new kitchen cabinet doors. All this, for less than you could rent one of these 2 bedroom condos. We expect to have it ready to move into by the end of this month.

The HOA has a pool for you to enjoy.
My homeowners association requires that my condo be owner occupied, so I can not rent it. I must sell it.
similar condos rent for $800+, I would sell mine to you for cash. It is not listed yet, so the price is still negotiable.

HOA dues $245,
Property tax $55,
Condo Owner insurance $30
Sacramento County Utility Bill (Sewer & Stormwater charge) $38.

Total Monthly housing expense without mortgage: $368.
0 votes Thank Flag Link Thu Feb 16, 2012
Jim Walker, Real Estate Pro in Carmichael, CA
MVP'08
Contact
Hi Andrea,

Thank you for your question. You are in a good position being able to pay cash, because you are right, overseas income is not generally usable to qualify for a mortgage.

When you find a place and decide to write an offer, the seller's agent will require you to provide "proof of funds" showing you have the ability to pay cash for the condo. This means that you will need some type of account statement showing that you have the funds available to buy the condo and pay for the closing costs.

It's not really complicated, but there are some things you need to know before you start looking. We can help you get prepared so that when the right condo comes along, you are ready to go and your offer has the greatest chance of getting accepted.

Please call us at 916-770-9890 when you are ready to start looking and we will make sure your offers are as good as they can possibly be.

Thank You,

Brad Coons
Realtor
Keller Williams Realty
548 Gibson Dr., #200
Roseville, CA 95678
916-770-9890 Phone
0 votes Thank Flag Link Thu Feb 16, 2012
Work with a Realtor there and they can help you. It is pretty darn easy with cash. You can often close in a couple weeks since there is no lender, no surveys, not much of anything. You will need someone to close the deal. Here we use lawyers but other places have title companies or something like that who does a title search (be sure to do this and read the condo documents carefully).
0 votes Thank Flag Link Thu Feb 16, 2012
Hi Andrea!

Buying a condo or home with cash is fairly straight forward and you can close in a short period of time - two weeks or so. Plus, it's a great way to go because many condo complexes are cash only at this time and can't even qualify for financing due to HOA litigation or too many investor owners in the complex.

When you buy a property with cash, you won't need to pay for an appraisal if you don't want one, and you'll save on fees since you won't be financing a loan. You'll still have time to do your buyer investigations and any inspections you want to have done - pest inspection, home inspection, etc. After you are satisfied with the results of the inspections you want done, it's a pretty simple process for title to draft up the documents for you to sign. You'll wire the money to the seller and the home is yours!

Just keep in mind HOA dues on condo complexes - be sure to know what they cover and how much they are. Also, walk around and talk to some of the neighbors in the complex and talk to the HOA about past / present litigation in the complex and how it was handled. This is all part of what you can do during your buyer investigation period of your contract - perhaps the first 10 days after your offer is accepted.

A condo can make a great investment down the line for you to keep as a rental since the renter won't have a yard to take care of. When you purchase this condo, please be sure to read the rental requirements or restrictions in the HOA docs / CCRs if this is a property you will one day keep as a rental unit....many times the complex restricts the number of investor owners / rentals there can be in a complex. Be sure to know what you will be up against down the line.

If I can be of any help in your search, please let me know! I'd be honored to earn your business!

Best of luck!

Lauren Schenke
Better Homes Realty
0 votes Thank Flag Link Thu Feb 16, 2012
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