A private lender’s doesn’t have to look any different than a regular lenders. Doesn’t she have a computer and a printer. Print up a letter head.
The usual lingo for such a letter states that you (buyer) has made application for such and such a loan and submitted all lender required documentation, and that based on that information the lender has preapproved you for a new first loan of $___________. (Which amount should be enough to purchase the property you want.) If it is contingent upon the lender needing a property appraisal prior to closing it can say that too.
prequal letter when flipping/wholesaling - Posted by K.EDISON
Posted by K.EDISON on November 21, 2001 at 10:20:32:
Just finished Steve Cooks Wholesaling Course and I was wondering how valuable a prequal letter or proof of funds letter is to getting sellers to take you seriously. Its no way that I WILL QUALIFY due to my credit and my recent layoff status from my job. My ? is has anyone had any success getting these types of documents from hard money lenders. Would it make more sense to wait till I get the property under contract then seek hard money or just say forgget it and flip quickly to another investor.
Re: prequal letter when flipping/wholesaling - Posted by SCook85
Posted by SCook85 on November 21, 2001 at 15:33:35:
If you are approaching banks as your source of properties, you will not get any of them under contract without a prequalification letter. There is no such thing when dealing with banks to get it under contract then get the letter.
Yes you can get a hard money lender to give you a prequalification letter. Not all will do it, but most will. Some don’t even know what to write. They may be somewhat resistant if they think that you are asking for a committment letter. Make sure they know that is not what you are looking for.
Re: prequal letter when flipping/wholesaling - Posted by Robin (AZ)
Posted by Robin (AZ) on November 21, 2001 at 21:40:24:
I recently purchased your course as well (great book, thanks!), and am wondering what a private lender’s prequal letter should look like, in order to have it carry enough weight? My hard money lender is a friend, so there is no letterhead, for example. I don’t know if she would give me a copy of her bank statements, so I’m wondering what other ideas you might have. I am not even planning on using her money, except as a last resort if I end up with a property I can’t flip as fast as I’d like, but I understand the psychological value of a prequal with an FSBO.