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Patricia Thomas
  • Bessemer, AL
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Proof of Funds

Patricia Thomas
  • Bessemer, AL
Posted Jul 19 2014, 00:18

Can I use my bank line of Credit and a Cashier's as Proof of Funds on my Wholesale deals? and if so how do I present these funds as a Proof of funds to my REO agent. I am new to wholesaling and am interested in making some deals. However, I don't want my personal bank account and other personal information exposed to a Real estate agent or (anyone else) I just met) knowing my TOTAL amount of available cash .

Please advise,

Pat

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Pete T.
  • Real estate investor
  • Las Vegas
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Pete T.
  • Real estate investor
  • Las Vegas
Replied Jul 19 2014, 05:11

Yes you can use your Line of credit.  Your bank should be able to make it say whatever you want within your limit.  You can avoid showing account numbers for some things, but at some point you will be sharing a lot of that information w/ someone during the transaction.

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Arlan Potter
  • Investor/Accountant/Builder
  • Meno, OK
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Arlan Potter
  • Investor/Accountant/Builder
  • Meno, OK
Replied Jul 19 2014, 06:44

"Proof of funds" is a letter from your bank stating that you have the money to pay for what you have under contract.  No account numbers, no checks, just one line with your bankers signature.

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Matt Devincenzo
  • Investor
  • Clairemont, CA
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Matt Devincenzo
  • Investor
  • Clairemont, CA
Replied Jul 19 2014, 07:10

I've just always used a screen shot from my computer of my available account balance. Since there are multiple accounts (savings, checking, deposit ect) if I need to I can just transfer some around so that only an amount similar to what I'm offering shows as available in that account. I then just use paint or adobe to redact any of the account numbers and other info I don't want shown.

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Reginald S.
  • Real Estate Investor
  • Bessemer, AL
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Reginald S.
  • Real Estate Investor
  • Bessemer, AL
Replied Jul 19 2014, 10:34

Thanks so much for all your help

Account Closed
  • Dallas, TX
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Account Closed
  • Dallas, TX
Replied Jul 19 2014, 10:57

@Patricia Thomas,

A lot of realtors will not work with investors, unless they can show a proof of funds that they can verify at the bank not one of the fraudulent proof of a fund's letters you get of the Internet. Why would a realtor work with you if you cannot proof up that you have funds?


Joe Gore

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J Scott
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  • Investor
  • Sarasota, FL
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J Scott
Pro Member
  • Investor
  • Sarasota, FL
ModeratorReplied Jul 19 2014, 11:09
Originally posted by @Account Closed:

@Patricia Thomas,

A lot of realtors will not work with investors, unless they can show a proof of funds that they can verify at the bank not one of the fraudulent proof of a fund's letters you get of the Internet. Why would a realtor work with you if you cannot proof up that you have funds?

 According to the original post, she has a line of credit...that's essentially cash and is perfectly acceptable as proof of funds for any seller I could imagine.

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Reginald S.
  • Real Estate Investor
  • Bessemer, AL
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Reginald S.
  • Real Estate Investor
  • Bessemer, AL
Replied Jul 19 2014, 11:11

It's not an issue of not having proof of funds.I was raising an issue of privacy

Account Closed
  • Dallas, TX
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Account Closed
  • Dallas, TX
Replied Jul 19 2014, 11:11

@J Scott,

You are correct as long as the realtor can verify it at the bank.

Joe Gore

Account Closed
  • Dallas, TX
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Account Closed
  • Dallas, TX
Replied Jul 19 2014, 11:15

Everyone should be concerned about privacy.


Joe Gore

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J Scott
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  • Investor
  • Sarasota, FL
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J Scott
Pro Member
  • Investor
  • Sarasota, FL
ModeratorReplied Jul 19 2014, 11:17
Originally posted by @Reginald S.:

It's not an issue of not having proof of funds.I was raising an issue of privacy

 Everyone you pay with a check has your bank name and account number.  

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Steve Babiak
  • Real Estate Investor
  • Audubon, PA
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Steve Babiak
  • Real Estate Investor
  • Audubon, PA
Replied Jul 19 2014, 11:54

One other thing to mention is that a loan pre-approval letter is also proof of funds.  So that means this discussion also should qualify whether one is talking about an offer that is "all cash" or partly financed.  And then we should identify which sort of proof qualifies as proof of cash or of a cash equivalent.