Lesson 1 of 5
Why some sellers cannot take a cash discount
Equity, not stubbornness, is usually what kills the cash offer.
7 min read
Run the payoff first
Loan balance, arrears, second liens, taxes, judgments and closing costs. If that total is close to market value, there is no room for a wholesale discount no matter how motivated the seller sounds. Find this out on the first call, not after three visits.
What the seller actually needs
Sometimes it is cash today. Often it is the payment gone, the property gone, the credit protected, or a number they can tell their family. Each of those has a structure that fits it, and only the first one requires a deep discount.
Creative is not a rescue for bad numbers
Terms change when and how you pay, not whether the deal works. If the property is worth less than the debt and the payment does not cover costs, no structure fixes that. Say so and move on.
Do this next
- Add payoff, arrears and lien questions to your intake.
- For your last three dead leads, work out whether equity or motivation was the blocker.
Education only — not legal, tax or investment advice, and no promise of income. Rules differ by state; check yours and use a real estate attorney.