In the Denver metro area’s fiercely competitive housing market, cash is king.
Given two offers of the same amount—one cash and another from a buyer taking out a loan– sellers will naturally snap up the cash offer. Meanwhile, some buyers without mountains of dollars in the bank are finding themselves making offer after offer, to no avail.
Enter a new kind of lender, one that will provide the cash for you.
“You can think of us as a kind of a rich aunt or a rich uncle, basically buyers get to be cash buyers using our cash,” says Adam Pollack, CEO of Accept.inc, a Colorado-based entrepreneurial venture. Accept.inc, which has teamed with RE/MAX of Cherry Creek, is one of several new lenders designed to help buyers compete with those flush with cash.
The concept is fairly simple. Buyers complete an approval process. Once approved, “you submit a cash offer with Accept.inc’s proof-of-funds,” notes Accept.inc’s website. The home is purchased using Accept.inc’s cash, then sold back to buyers after closing at the exact same price.
Cash lenders have designed their loan products to compete with the rates and fee structures provided by traditional lenders. One notable difference: the earnest money required from the buyer may be higher in some cases. Buyers are always well advised to compare rates, fees and services across multiple lenders to make sure they’re getting a reliable product at a competitive price.
In a market where cash offers head to the front of the line, many buyers will appreciate the company’s stated mission: “…[W]e believe anyone who can afford a home deserves an equal shot at winning—we believe that the best homes, school districts, and neighborhoods shouldn’t be reserved exclusively for buyers who have hundreds of thousands or millions of dollars in their bank accounts.”