Posted by James Strange on November 09, 2002 at 21:08:26:
Have you talked to a mortgage broker? They can give you a pre approval letter.
The proof of funds depends upon the broker, area, ect. The last 5 offer that I have written up I did not have a letter and did not write a check. My offer stated that within 24 hours of offer acceptance I would put up x number of dollars.
But some brokers will not let agents do this.
Proof of funds letter - Posted by Jennifer
Posted by Jennifer on November 09, 2002 at 14:54:56:
Well i am all set to go- found some prospective properties- have posted on some of them and can not get a proof of funds letter to submit offers with realtors. A realtor has shown me a few houses and she has been instrumental to me- she deserves to be compensated.
I was told almost anyone can get me one of these letters- but all that i have contacted either want this long credit app filled out (i have no credit- want to flip for right now)or haven’t gotten back to me (not good business practice).
I need to move fast to get these deals- any idea where i can get one of these letters?? I have been working for a week, contacted people and hard money lenders (which all want to do a credit check by the way).
Any advice??
Re: Proof of funds letter - Posted by Kristine-CA
Posted by Kristine-CA on November 11, 2002 at 11:19:59:
I’ve mades lots and lots of offer through agents and the only time I’ve been required to show proof of funds is when the seller has been a bank and they wanted proof of funds before they accepted my offer.
I wouldn’t give an agent a proof of funds letter. And I would go to another agent the minute an agent asked me for one just to submit my offers. I can understand a particular seller needing one, but I don’t go around giving my phone number to the cashiers at stores either.
Remember, motivated sellers are where the deals are. Agents sometimes have properties with motivated sellers, but sellers and agents that are requiring proof of funds just to submit or look at an offer are not motivated, in my opinion.
I’m not sure, but it seems when a lot of us newbies start out there is this idea that we have to win approval of those in the business. A really good agent can bring you good listings, but most of them are not doing what you are trying to do. You don’t need their approval or respect. Don’t ask for permission to make offers. Tell agents that you are an investor and that you want to make offers. Call around until you find one that will do that for you.
Proof of funds is not what it takes to buy from a motivated seller.
Sincerely, Kristine
Re: Proof of funds letter - Posted by Anne_ND
Posted by Anne_ND on November 10, 2002 at 11:21:25:
Jennifer,
Not all regions have the custom of requiring proof of funds in order to make an offer through an agent. I’ve made plenty of offers through REALTORS and never had to show them such an animal.
However, I do think it’s best to stay on good terms with REALTORS (for the most part)- so when in Rome…
That means that since you’re starting out you will need to buy from sellers directly. I agree that FSBOs usually want more money by selling themselves, but there are a whole bunch of motivated sellers who are not yet FSBOs- get them to call you. What kind of advertising do you have going right now?
You could also get your buyers lined up and get letters from them, as someone else suggested. If you want to flip, it’s undoubtedly better to have the buyers lined up first if you want to close a deal in 30-45 days. Your REALTOR friend will be much more upset with you if you make an offer and can’t close than she will if you make no offer at all.
good luck,
Anne
HOW ABOUT… - Posted by Michael_NJ
Posted by Michael_NJ on November 10, 2002 at 07:43:29:
A pre-approved letter should be sufficient with an offer!
Michael_NJ
Re: Proof of funds letter - Posted by JCinIL
Posted by JCinIL on November 09, 2002 at 22:44:59:
Maybe you are not using the right realtor. I work with one who just needed a pre qualify letter which I got online at Wachovia.com. Tweek the numbers til you get what you need. My agent just needs this because she deals with traditional lending as well as investors and has to ask it from everyone. LIke most loan officers hard money lenders cant legally ask for credit from one person and not from all. Just find out up front how important credit is to determine if they are true HML.
Julece
Re: Proof of funds letter - Posted by Rob FL
Posted by Rob FL on November 09, 2002 at 16:34:03:
In spite of what I’ve read so much on this website, I haven’t been able to find any hard money lenders or regular lenders for that matter who will loan money solely based on property value. Everybody wants to see a credit report. And of course if you are dealing with Realtors you need to expect to have a proof of funds letter.
My personal advice to you is to not make offers that you can’t follow through on. Meaning if you make a cash offer to close in 30 days, then you better be able to close on it and not be dependent on some unknown investor or partner that might not even be interested in the property you have to flip to them.
Just my opinions.
Re: Proof of funds letter - Posted by Jennifer
Posted by Jennifer on November 09, 2002 at 17:06:35:
I understand where you are coming from- i have heard it before. And you’re right about hard money lenders- there aren’t any REAL ones out there.
However, I am extrememly confident in finding buyers for these properties i have scouted out. Also, I have a network behind me if things don’t work out (my mother is an attorney and if i do get stuck- we will work something out- there are a few investors in her firm- i just want to do this on my own if possible)
I won’t get “stuck” as i won’t allow that to happen.
But i know SOMEBODY out there can help me get a proof of funds letter…anybody? anybody??
Re: Proof of funds letter - Posted by Nate(DC)
Posted by Nate(DC) on November 09, 2002 at 22:33:50:
Have one of your mom’s fellow-attornies write a proof of funds letter and attach a bank or stock statement showing they have the assets to back it up.
That should work.
NT
Re: Proof of funds letter - Posted by Rob FL
Posted by Rob FL on November 09, 2002 at 21:06:55:
I do believe there are some “real” hard money lenders out there, but I haven’t been able to find any. If anybody in the CRE world can give me a name and number of one that won’t check credit, I’d love to see it.
With FSBO properties, I’ve never had a person ask to see proof of funds. But with REO properties they always ask. Sometimes you can get away with not providing one on regualr listed properties, but any smart agent is going to require it anyway. They don’t want to spend alot of time and energy on someone who can’t actually close.
If you get friendly enough with a mortgage broker, they can probably provide a blanket one for you. Another thing I’ve done is provide recent equity-line statements that show a large available balance.
Re: Proof of funds letter - Posted by JoeKaiser
Posted by JoeKaiser on November 09, 2002 at 18:02:12:
I can help . . .
No one’s ever asked me for a proof of funds letter. You might want to ponder that. Not trying to be a smart aleck but I suggest that if you’re being asked for such a letter, you’re doing it wrong.
Joe
Re: Proof of funds letter - Posted by Jennifer
Posted by Jennifer on November 09, 2002 at 18:31:14:
Thanks for the input- I have done some searching and reading archived posts and such, and it seems everyone needs one of these letters.
When i talked to my realtor, she told me i needed a proof of funds letter to submit with my offer. She told me to contact her as soon as I got one. She is also a close friend of mine- who knows what my objectives are.
How can i get around this? It seems that agents are saying this is standard policy, and a must-have.
I don’t want to be rude with her, but would like to know what i am doing wrong…
Thank you.
Jennifer
Re: Proof of funds letter - Posted by Jennifer
Posted by Jennifer on November 09, 2002 at 18:20:56:
Thanks for the input- but i am working with a realtor (these properties are also listed with a realtor)and she said it is required to submit a proof of funds letter…
If it is not necessary, what can i say to her about it?
I know some people frown upon working with realtors, but in my searching i have found that FSBO’s are usually people trying to get more money out of their property- by avoiding realtor fees- therefore less likely to bargain.
I will not stop looking at FSBO’s however- they just haven’t been productive for me so far.
Thanks for the input- I would like to know what i should say to my realtor to avoid the letter process.
Jennifer
Re: Proof of funds letter - Posted by jeff
Posted by jeff on November 10, 2002 at 05:34:41:
ive never been asked for proof either. i always keep it with me, but ive yet to have to bring it out. realtors do ask for deposits, but the proof of funds is something they have never mentioned, and i havent brought it up either.
i beleive its an area thing. its customary in certaini areas to do things that other areas have never heard of. of course, there are also different laws in each state, so maybe in your state it is required, but i somehow doubt it. my guess is the customary and standard philosophy. its just what everyone has been doing for years and realtors get stuck in a rut and refuse to bend to see a different method.