What is 'synthetic cash'? It's helping tech workers win bidding wars on San Francisco housing.

Cash is still king in San Francisco real estate, but an all-cash offer isn’t always what it appears to be.

Arrian recently shared with the San Francisco Business Times how buyers are getting more creative to compete, using what he calls “synthetic cash”: borrowing against stock portfolios, vested RSUs, future carried interest, or other assets to bring cash to closing, then placing a conventional mortgage on the property afterward.

“From the seller’s standpoint, a synthetic cash offer is indistinguishable from the real thing: no loan contingency, no appraisal risk. That makes the buyer significantly stronger and more competitive.”

And while nearly half of luxury sales in San Francisco may close all-cash, that doesn’t necessarily mean those buyers ultimately own their homes debt-free, sometimes the financing simply comes after the deed records.

Read the full article HERE.