What to do about proof of funds

5 Replies

What do we do when the realtors ask fir verification of funds or prequal letter up front? I don't want to send financial statements on every single deal nor do I want to get prequalified on every offer. These aren't even confirmed deals. In addition, most of us will sign the contract before the money. We get the money based on the deal. I'm stuck

Christy, do you think I am stalking you? Hope not. I have some time on my hands today and youseem to ask all the questions I can throw some input to.

Are you focusing on REOs? If so then you will need a realtor to submit the offer.(at least here, TX you do) (I have a buyers agent I use to submit all my offers. She doesnt have to do much as I tend to do alot of the legwork myself. But she helps at closings finding MLS info, submitting my crazy offers etc and I dont pay her, the seller does) They will always want proof of funds. usually a copy of a bank statement with your name on it will do. If you are borrowing the cash just get a preapproval letter form your lender of choice. You can use that until that loan funds.

Now if you are direct wholesaling to an owner you dont need any of this. Get an assigment contract signed and then find a buyer. Your not buying the place only working to sell it for them. I dont see the need for deposits or any out of pocket cash on your part. Just make sure they arent with a real estate agent already as that can get sticky.
If you are in a place that you feel you need to exchange money to hold an option there is nothing that I know of that says you cant execute that option for a dollar. I put options on all my offers for a $1 here and most are ok with it. Some want more but I never go over $50.00 to hold an option contract.

Hey stalker! Thank you so much. I appreciate all of your input. I did find a buyers agent who is putting in all of the offers for me. I really like your option idea. I was told it was standard $10 a day but I'm cool with $1 a day. :lol: Thank you very much for your input. I can't speak for anyone else, but I love the different ideas ad experiences. It can only help me and others to improve.

Everything is negotiable. I have gone 2 days negotiating the dollar amount and number of days for the option contract. My current offerI am working on is for a $1, 7 day option period, not a dollar a day. I am paying cash for it so they probably wont balk at it as I only want to run an inspector through it to verify my own inspection. It is going to be a 30-40K rehab so I am being a little more careful.

You can usually find a lender that will work with you and only look at your financials once then be willing to submit a blanket pre-approval letter. A seller shouldn't be interested in much more than that unless there is sub-ordinate financing involved.