Have you ever wondered how my FHA, VA, and conventional clients seem to always win their offers? I use a few different strategies and one of my newest options is backing their offers with CASH using Ribbon. Key points:
- Ribbon CASH Boost – 1% of the purchase, you pay at closing
- You still close with your preferred lender, Ribbon is only promising to buy the home cash from the seller if you are unable to
- Ribbon Purchase – can’t close in time? Ribbon will buy the home for you and you can purchase it from them (at the original contract price) within 180 days. This option costs 2.75% of the purchase price
Want more info? Read below….
RIBBON – OVERVIEW
Ribbon will back you in writing a cash offer on your new home. If you cannot sell your current home and/or get your loan on closing day — Ribbon will buy the new house for you and lease it back for up to 6 months (180 days). When you are ready, we sell the house back to you at the same price we originally bought the home for. If you can close without needing Ribbon to fund the purchase, you may close with your own financing and our transaction fee will lower to 1%.
- Ribbon Fee
The 2.75% Ribbon Fee must be negotiated into the buyer’s earnest money or via seller paid closing costs. If the buyer can close without needing Ribbon to fund, we will only collect 1% on closing day.
OFFER INSTRUCTIONS
Enter your offer details on our platform here! The website will walk you step-by-step to submit the offer and auto-fill the FL state contract along with the added Ribbon documents (video tutorials). Below reviews how the contract will read:
- Buyers: Your client(s) name
- Earnest Money: Must equal 2.75% of the offer price to cover the Ribbon Fee.
- If your client is offering over Ribbon’s Max Value then those amounts will need to be added to the earnest money on top of the 2.75% fee (Example: If you offer $5,000 over the Ribbon Max Value, the deposits must be a minimum of the 2.75% Ribbon Fee + $5,000 overage).
- Closing Date: Minimum 21 business days, or longer if preferred. The timeline starts from the date Ribbon receives all executed documents.
- Note: Please send all executed documents to Ribbon ASAP. Ribbon allows a maximum of 14 days for seller possession after closing or temporary occupancy agreements.
- Assignability: Check “May Not Assign“
- Financing: Check “(a)” – Cash
- Property Inspection; Right To Cancel: Minimum 7 standard days, or longer if preferred. The timeline starts from the date Ribbon receives all executed documents.
- Ribbon will require a copy of the inspection report and may ask for Ribbon Required Repairs. Please submit to our team 5 days before the inspection period ends. If there is a basement, pool, well, septic or sign of termites we will require additional inspections. We are requesting anything the lender may need to close the loan, structural/foundation issues and health & safety items. Ribbon will require these repairs to close. If not completed by the seller, the buyer will be responsible for the repairs. Please review Ribbon’s inspection and repair process here.
- Addenda/Riders: Check “Other“. Write on the line “Ribbon Offer Addendum“
- Additional Terms: Write in dollar amount if requesting seller paid closing costs to pay any or all of the Ribbon 2.75% fee
- Title Company: Ribbon highly recommends to close with one of our preferred title companies:
IMPORTANT – MUST READ & ACKNOWLEDGE:
- Once the offer is accepted, please send me all the executed contract documents and I will loop you in with your designated Transaction Coordinator.
- If the contract does not meet our requirements, we cannot begin processing the file until all documents are corrected and we may require an extension in the due diligence / inspection period and closing date.
- Ribbon allows a maximum of 14 days for seller possession after closing or temporary occupancy agreements.
- Please check if the property has an HOA with rental restrictions PRIOR to submitting the offer. If Ribbon must purchase on behalf of the buyers, the HOA will have to approve of the rental.
RESOURCES
🏡 How Ribbon works
💲 Pricing
❓ FAQs
📺 Videos
Please let me know if you have any questions in the meantime.