Monday we closed a deal that would never have closed if the buyer hadn't brought about 80% to the table. For a number of reasons, no bank would consider underwriting a loan on the property in today's climate. Unfortunately, this is becoming the norm.

The Seller in this cs held a First mortgage four the remaining 20% of the deal which we ballooned in 18 months (20 year amortization at 8% interest).

As the banks get more and more selective about which properties they will right loans against, those who have cash will be in a better position to negotiate and the sellers will have to become more comfortable holding a mortgage.

The other buyers who are well positioned are those that already have lots of property (with positive equity) that they can cross collateralize. While not always optimal for the buyer, it does provide access to funds to buy during this down market.