PoF for a PoF ? Please advise

Hi there. I've been making offers on REO's with POF's and most of all the Agents come back saying that they need a bank statement or proof that the POF provider has the funds to purchase the property. Anyone heard of this? Is there a way around this or no?

Edited: 06/26/2010 at 10:30AM

Anson Young

Wholesaler · Denver, Colorado

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Icon_minipost Nov 15 '09, 09:39 AM

Originally posted by Greg Park

Hi there. I've been making offers on REO's with POF's and most of all the Agents come back saying that they need a bank statement or proof that the POF provider has the funds to purchase the property. Anyone heard of this? Is there a way around this or no?

Not really, its bank/asset manager specific. We have some banks that want full bank statements, others barely look at a bank letter (or insert fake POF from the web here).
If they are asking for a bank statement, you will need to provide one that is 30 days old or lose the deal.

Edited: 06/26/2010 at 10:31AM

Curt Davis

Wholesaler · Memphis, Tennessee

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Icon_minipost Nov 15 '09, 10:36 AM

You should not even be making offers unless you have a REAL POF letter. Your just going to ruin your name with the REO agents and once they all know your passing off a fake letter you will never lock up a deal again.

Please do things right. You will be doing the other real investors a dis-service.

Edited: 06/26/2010 at 10:31AM

Curt Davis, buyMemphisnow.com
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Greg P.

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Icon_minipost Nov 16 '09, 04:41 AM

Well, the thing is, I learned this from the REO Rockstar and they are reputable investors. I'm not sure what to think now.

Edited: 06/26/2010 at 10:32AM

Scott Hubbard

Rehabber · Tucson, Arizona

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Icon_minipost Nov 20 '09, 12:57 AM

Originally posted by Greg Park

Hi there. I've been making offers on REO's with POF's and most of all the Agents come back saying that they need a bank statement or proof that the POF provider has the funds to purchase the property. Anyone heard of this? Is there a way around this or no?

Welcome to the real world. Lenders Do Not want you to flip their assets. REO Rockstar, like other Guru's, found it more difficult to profit from these type of transactions, so they started selling their "systems".

Anyway, when you run into an agent or an asset manager that is requiring a bank statement, then you can bet your last dollar that they were burned before.

If your going to be successful in buying REO's, you need to either use OPM or your own money to qualify. Or, look for that needle in a haystack.

Good luck!

Edited: 06/26/2010 at 10:35AM

Will Barnard

Rehabber · Santa Clarita, California

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Icon_minipost Nov 24 '09, 01:01 PM

Originally posted by Greg Park

Well, the thing is, I learned this from the REO Rockstar and they are reputable investors. I'm not sure what to think now.

With a name like that, they must be successful, right?!?!
The worst thing you can do is take the word of a guru! If it was that easy and always worked, why would they share that info! Because they make more money selling the info than actually investing.

Take the word of an expereinced REO buyer/flipper. In this business, it is ALL about relationships and the easiest way to ruin one, is to not perform. Do not make offers on properties with your created relationship or risk destroying it!

POF letters may work at times for REO properties, but in most cases, banks want to see hard funds. As Scott stated, find private funds or have your own, otherwise, you are not going to be a real player in this field.

Edited: 06/26/2010 at 10:38AM

Will Barnard, Barnard Enterprises, Inc.
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Will Barnard

Rehabber · Santa Clarita, California

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Icon_minipost Nov 24 '09, 01:03 PM

Additional thought. This thread reminds me of another here on BP where someone was offering a bank statement POF but charging like 2 points for it. The thing that was not stated, until I jumped in, was the fact that the funds can not be used to take down the property, so real bank statement in your name or not, what good is it if you can't close! What a waste of $$$$$$$$

Edited: 06/26/2010 at 10:38AM

Will Barnard, Barnard Enterprises, Inc.
E-Mail: info@barnardenterprises.com
Website: http://www.barnardenterprises.com
info@barnardenterprises.com