Potential BRRRR deal requires proof of funds letter

[Douglas A Lewis]

I have a property that I’m putting in an offer on but the seller is requiring a proof of funds letter. I thought I could line up financing in the due diligence phase of the deal. The property needs a lot of work so I cannot use a traditional bank yet for the financing. Should or could I get a letter from a hard money lender? Or what other idea would you suggest?

[Herndon Davis]

Originally posted by @Douglas A Lewis:

Have a Mortgage Broker send you an email stating they've identified Non-QM (Non-Qualified Mortgage) Lenders willing to make you Purchase+ Rehab Loan based upon the information you initially provided them. Have them further state that "this approval is tentative based upon verification of the specifics of the deal such as repair costs, ARV, your personal credit and liquidity.

Forward a copy of this email to the Seller's Agent. You should have your agent clearly explain to the Seller's agent that because of the state of the property is in you can not get Conventional Financing and that this is the best you can do. And if the Seller still doesn't budge then move on or pay cash!

[Douglas A Lewis]

@Herndon Davis

I will try that. Thank you so much for the advice

[Herndon Davis]

Originally posted by @Douglas A Lewis:

@Herndon Davis

I will PM you to see if I can be of assistance

[Jerry Padilla]

@Douglas A Lewis

There are a couple of conventional renovations loans that you may be able to get pre-approved for. Is this a Single family or multi-family property?