Money Rehab with Nicole Lapin - How to Make an All-Cash Offer on a House (Even If You Don't Have the Cash)

Episode Date: September 2, 2025

No cash? No problem! Today, Nicole explains the money moves that can help you make an all-cash offer on a home... even if you don't have the $! This podcast is for informational purposes only and does not constitute financial, investment, or legal advice. Always do your own research and consult a licensed financial advisor before making any financial decisions or investments. All investing involves the risk of loss, including loss of principal. Brokerage services for US-listed, registered securities, options and bonds in a self-directed account are offered by Public Investing, Inc., member FINRA & SIPC. Public Investing offers a High-Yield Cash Account where funds from this account are automatically deposited into partner banks where they earn interest and are eligible for FDIC insurance; Public Investing is not a bank. Cryptocurrency trading services are offered by Bakkt Crypto Solutions, LLC (NMLS ID 1890144), which is licensed to engage in virtual currency business activity by the NYSDFS. Cryptocurrency is highly speculative, involves a high degree of risk, and has the potential for loss of the entire amount of an investment. Cryptocurrency holdings are not protected by the FDIC or SIPC.  *APY as of 6/30/25, offered by Public Investing, member FINRA/SIPC. Rate subject to change. See terms of IRA Match Program here: public.com/disclosures/ira-match.

If you take only one thing away from today's episode, money rehabbers, let it be this. In my not so humble opinion, Public is the best brokerage for investing in bonds, stocks, ETFs, options, and even crypto. You can try it out for yourself and see why I love it so much at public.com slash money rehab. Public is legit the only platform I use to buy bonds. Before public, I used to buy government bonds the hard way. Slow websites, confusing interfaces, website designs straight out of the early 2000s. Just picture where fun goes to die.

That was it. And then I found Public. About five years ago, and I have not looked back. I can now finally buy bonds without wanting to rip my hair out. Public makes it so easy to buy bonds, whether you're into treasuries or corporate bonds, you can browse thousands of options right from your phone. But like I said, public isn't just all about bonds. You can also find stocks and ETFs, and they offer a high-yield cash account with a 4.1% APY, which is higher than the national average. They even have retirement accounts. can now open a traditional or Roth IRA or both right on public. So your future self covered. And for a limited time, you can earn a 1% match on all your IRA deposits, IRA transfers, and 401k rollovers. If you want an investing experience that's both smart and simple, head to public.com slash money rehab. One more time, public.com slash money rehab. This is a paid endorsement for public investing, full disclosures and conditions can be found in the podcast description. I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand. It's time for some money rehab.

How the heck is everyone out here making all cash offers on houses right now? In this economy? Seriously, your friend from college who still uses your Spotify login is somehow closing on a new place with no mortgage contingency? Or that couple in your neighborhood who just sold their tech startup. I mean, fine, I'll give them a pass. But it still feels like the all-cash club is suddenly way more crowded than it used to be. So is everyone a secret millionaire? Not quite.

Today, I'm going to share the strategy behind these cash offers and why the real flex isn't actually having a pile of money to throw around. It's knowing how to borrow smartly after the deal is done. It's a play called delayed financing, and it's how some savvy buyers are winning bidding wars in this ultra-competitive housing market without draining their bank accounts. Let's start with the basics. What is a cash offer? Well, a cash offer means exactly what it sounds like. You're offering to buy the home outright, no mortgage needed. There's no financing contingency, no waiting for the bank to approve your loan, no red tape, and because of that,

your offer looks much more appealing to the seller. It signals a fast, smooth closing. No last-minute hiccups with underwriting. You become the low-drama buyer of a seller's dreams. And in this, this market, that is priceless. But here's the plot twist. Just because someone makes a cash offer doesn't mean they're keeping the house debt free. That's where delayed financing comes in. Delayed financing is a little known but totally legit mortgage strategy that lets you reimburse yourself after you've bought a home with cash. Here's how it works. Step one, you make an all-cash offer. No contingencies. Fast close. You stand out to the seller. Step two, after the deal closes and the home is in your name, you apply for a mortgage. Step three,

Once you're approved, you pull cash out of the home just like a refinance. And there, you have essentially replaced your upfront cash with a loan. Think of it like fronting the money for a purchase and then cashing yourself out afterward. So no, these buyers aren't necessarily loaded. They're just smart with their financing. They're leveraging delayed financing to move fast in a tight market, then reliquifying their bank accounts on the back end. So why would someone do this instead of just getting a mortgage up front? Great question. Right now homes are flying. off the market faster than you can say Fed rate decision. Sellers are looking for offers that are quick, clean, and come with as little drama as possible. A mortgage, even a pre-approved one, can introduce delays and uncertainty. If you're competing against 10 buyers and one of them is offering all cash, who do you think the seller is going to pick? Exactly. Delayed financing lets you look like a baller without actually having to be one. But wait, what if you don't have the cash to begin with? You're probably thinking, cool, Nicole, love the trick, but don't have a spare. 800K just lying around. Totally fair. Most people don't. But it doesn't mean that you're out of the

game. Let's talk about some other creative money moves that buyers are using right now to make offers that look like cash, even if their bank accounts say otherwise. Number one, partnering with cash offer companies. There are now companies that will front you the cash to buy the home on your behalf. You make your offer as a cash buyer because technically they are the buyer. Then once the deal is done, you buy the home back from them using traditional financing. These companies, of course, are going to charge a fee, typically 1 to 3% of the home price, but in a competitive market, that could potentially make sense to beat out 15 other offers. Number two, use a bridge loan.

This is a short-term loan that helps you bridge the gap, hence the name, between buying your new home and selling your current one. Say you want to buy a new house, but most of your equity is tied up in your current one. You can take out a bridge loan using your current home as collateral. That gives you enough liquidity to make an offer without waiting to sell first. I definitely want to mention that bridge loans are not cheap. They come with high interest rates. But again, the name of the game is flexibility here. And this could get you in the door when speed is of the essence. Number three, tapping a HELOC. If you already own a home with significant equity, a home equity line of credit or HELOC can be a great way to temporarily boost your buying power. A HELOC works kind of like a credit card. You get approved for a line of credit and you can borrow against it as needed.

The upside is you only pay interest on what you borrow. The downside is, Heelock's typically come with variable interest rates and their best used short term. Still, if you need 100K to make a more competitive offer and you do have that equity available in your current home, a HELOC potentially could be your secret weapon. Number four, getting fully underwritten before you shop. If you've been shopping around, you know there is a huge difference between getting pre-qualified, pre-approved, and fully underwritten. When you're fully underwritten, it means the lender has already reviewed your income, assets,

credit, and everything else ahead of time. So instead of saying, we'll probably approve you, they're saying we are ready to fund this thing tomorrow. Some sellers and agents see a fully underwritten offer as nearly as good as cash, especially if it's paired with a quick close and no financing contingencies. Pro tip, get your underwriting done with a lender before you even start house hunting. It will make your offers way more competitive, even if you're financing. So what's the takeaway. The bottom line here is you don't need to be sitting on a pile of money to make an all-cash offer in today's market. But you do need a strategy. Buyers who are winning bidding wars right now aren't necessarily richer. They're just more prepared. They're working with lenders. They're

using creative financing tools and they're finding ways to make themselves stand out without emptying their savings. You don't have to go it alone. Talk to a mortgage broker. Ask about delayed financing. Explore partnerships. If you're smart about how you structure your offer, you might just be able to pull off an all-cash offer, too, and walk away with the keys in hand and your money still in the bank. For today's tip you can take straight to the bank. If you found this episode helpful, please share it with a friend. You know, the one who's out there, house hunting, getting outbid, stocking Zillow every

five seconds. We all have a friend like that. And remember, financial confidence isn't about having all the answers. It's about knowing which questions to ask. Money Rehab is a production of Money News Network. I'm your host, Nicole Lapin. Money Rehab's executive producer is Morgan LaVoy. Our researcher is Emily Holmes.

Do you need some money rehab? And let's be honest, we all do. So email us your money questions, money rehab at money newsnetwork.com, to potentially have your questions answered on the show or even have a one-on-one intervention with me. And follow us on Instagram at Money News and TikTok. at Money News Network for exclusive video content.

And lastly, thank you. No, seriously, thank you. Thank you for listening and for investing in yourself, which is the most important investment you can make.