I love posts by people looking for seedy ways to look credible.
Seedy?? Honestly I don't get a lot of the commenters on this post. It's like y'all are all newer newbies than Susan says she is. No agent that you do not already have a great relationship with AND who understands the nature of REI and flipping (RARE) is going to send your offer to the owner without a POF letter. None. Nadda. Zip. Zero. Go ahead and pick any house off of Redfin which has a "start an offer" option. You will get a message back from the agent saying they need a POF letter before submitting the offer to the owner. You can use any real estate site but redfin is faster.
The reality is that it's based on a contingency. The investor looks at property , makes an offer contingent upon approval and inspection. Maybe the investor just got burned on a house with a faulty foundation and does not want to mess with any house with foundation problems. They can make the offer - contingent upon inspection. Investor gets contractor to inspect and give a scope and a price for rehab. The rehab costs are going to exceed the avg list price for a comparable home in the area so guess what? NO DEAL. Nevermind my offer. Forget it. Walk away. Oh and it has a cracked slab? RUN! A HML and a PML will not lend money on a property that, once inspected and scope price given, will not turn at least X% profit because they are not in the business of lending so they can lose money on bad deals.
All POF letters that are not your own money are CONTINGENT. That does not mean they are seedy or fraudulent. It means they are prudent.
HML's and some PML's also require an appraisal and if the house does not appraise for the amount requested, the borrower either has to come up with the difference or it's not something the lender will fund. Also, this is because they are prudent, not seedy. So if a deal falls through after a POF has been provided, it's because it wasn't a good deal. Y'all are funny to act like the seller and selling agent are not hiding anything, because if there are serious problems, they more than likely are hiding it in non-disclosure and claiming ignorance.
On top of that, even seasoned investors do not always use their own money to fund a deal. In fact they rarely do because they typically have about 7 to 10 deals going at the same time and that, my friends, is a lot of Snapple. I am sorry for Susan that she received a lot of unprofessional, bad advice and no doubt lost out on making money off her deal.
manhattan, NY · Member since 2014 · 6 posts · 3 votes
12y
clarification..i meant property address...as a cash investor RE agents are asking me proof...the online free funds require an address ..but i am interested in several properties...
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
12y
Understand though, that a letter from a "lender" is Not a POF for a cash purchase, it's a preapproval for a loan, and considered useless by most when it's off the Internet. A POF, for a cash purchase, is a bank account in Your name with the necessary funds.
Lender · Rochester, NY · Member since 2014 · 3k+ posts · 1k+ votes
12y
I am still confused at what you are asking. From what I read the agent is asking you to provide proof of how you are going to purchase a property, correct? If you are looking to go conventional then like mentioned above you would need a pre-approval letter, if you are looking for private financing than you would need proof of the money that they are lending you, if you have the cash yourself to pay for the property than you could show a bank statement. How do you intend to purchase the investment property? Have you looked into getting pre-approved for a mortgage? Getting pre-approved is the first step if you don't have all the cash. If using a private lender than it is a good idea to find one before you start looking.
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
12y
I suspect @Suzan Suzan is trying to wholesale. And making "all cash" offers. Those typically do require proof you have the money to close. While there are such letters available on the internet, they're useless.
manhattan, NY · Member since 2014 · 6 posts · 3 votes
12y
thanks...yes the proof of funds ltr is for the agent who is not showing without this..i do not have my own funds... the free ltrs on line requires a specific property...one address...I am not sure what to do in order to see several properties with the same agent..i am a cash investor...
Boston, MA · Member since 2014 · 11 posts · 3 votes
12y
There are real estate agents that won't show new investors around with out a Proof of Funds bank account snap shot. Also, HML's and PML's usually won't give you any assistance unless you have an actual DEAL for a specific property. It is a catch 22 unless you are in a network where people share their POF's so newbies can get their foot in the door. Most people do not consider that fraudulent. Just helping young investors out.
Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
12y
The agent is asking for this proof of funds letter because he/she suspects you do not have any money. & they do not want to waste time on someone who cannot close the deal.
A bogus letter that you are looking for is not going to get that agent to drive you around.
Real estate investor · Las Vegas · Member since 2013 · 798 posts · 171 votes
11y
"I do not have funds... I am a cash investor" Are you using a HML/PML? If that is the case you should be able to get it from them. If that is not the case can you be a little more clear about what you are trying to do?
To whom may to reading this e-mail. I need to get a proof of funds letter. How do i get one and doing anyone know any website that may be the right one to get the letter. Thanks
Flipper/Rehabber · Grand Prairie, TX · Member since 2014 · 8 posts · 3 votes
11y
Suzan,
Honesty is the best policy. Have you tried simply letting the agent know your intentions? You're an investor and/or wholesaler looking for a good deal. Tell them you just wan to get a closer look at the property, take a few pics and make your assessment. If you or one of your investors think it's worth pursuing, you will provide all the required documents. As a former Realtor it helps to know up front who you're dealing with. Also, as a former Realtor we just want the property sold no matter who's buying it. Hope that helps.
Eric - as others in the thread above posted, your best POF letter is your bank statement with your name on it, showing funds to purchase the property. Otherwise a pre-approval letter from a lender is the next best.
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
11y
@Eric Hunter a "proof of funds" is a bank statement with the same name as is on the offer, showing enough money to close the purchase. If you can't produce that bank statement you should NOT be writing cash offers. There are free proof of funds letters you can find on the web. Sellers will generally know those are worth as much as you pay for them and throw your offer in the trash along with that bogus proof of funds letter.
If you're getting a loan, write your offer as "financed" and include the preapproval letter from your lender. If you're not yet pre-approved, get pre-approved.
I love posts by people looking for seedy ways to look credible.
Seedy?? Honestly I don't get a lot of the commenters on this post. It's like y'all are all newer newbies than Susan says she is. No agent that you do not already have a great relationship with AND who understands the nature of REI and flipping (RARE) is going to send your offer to the owner without a POF letter. None. Nadda. Zip. Zero. Go ahead and pick any house off of Redfin which has a "start an offer" option. You will get a message back from the agent saying they need a POF letter before submitting the offer to the owner. You can use any real estate site but redfin is faster.
The reality is that it's based on a contingency. The investor looks at property , makes an offer contingent upon approval and inspection. Maybe the investor just got burned on a house with a faulty foundation and does not want to mess with any house with foundation problems. They can make the offer - contingent upon inspection. Investor gets contractor to inspect and give a scope and a price for rehab. The rehab costs are going to exceed the avg list price for a comparable home in the area so guess what? NO DEAL. Nevermind my offer. Forget it. Walk away. Oh and it has a cracked slab? RUN! A HML and a PML will not lend money on a property that, once inspected and scope price given, will not turn at least X% profit because they are not in the business of lending so they can lose money on bad deals.
All POF letters that are not your own money are CONTINGENT. That does not mean they are seedy or fraudulent. It means they are prudent.
HML's and some PML's also require an appraisal and if the house does not appraise for the amount requested, the borrower either has to come up with the difference or it's not something the lender will fund. Also, this is because they are prudent, not seedy. So if a deal falls through after a POF has been provided, it's because it wasn't a good deal. Y'all are funny to act like the seller and selling agent are not hiding anything, because if there are serious problems, they more than likely are hiding it in non-disclosure and claiming ignorance.
On top of that, even seasoned investors do not always use their own money to fund a deal. In fact they rarely do because they typically have about 7 to 10 deals going at the same time and that, my friends, is a lot of Snapple. I am sorry for Susan that she received a lot of unprofessional, bad advice and no doubt lost out on making money off her deal.
It's really simple if one is a "cash buyer" there is no financing contingency so a bank statement is needed.
If buying with financing one needs a pre approval letter from a credible lender. Such as a bank that has ran a credit check on the applicant, not something you can google and print out.
The comments made in this thread by the members were credible and professional.
It's really simple if one is a "cash buyer" there is no financing contingency so a bank statement is needed.
If buying with financing one needs a pre approval letter from a credible lender. Such as a bank that has ran a credit check on the applicant, not something you can google and print out.
The comments made in this thread by the members were credible and professional.
James, yes I know what pre qualification is. I also know that in the past 4 months, I, personally, have received, presented and had accepted, with no contingency and no questions asked, four proof of funds letters, one of which went to a bank (shortsale), and they accepted it. I have never been asked for more proof or a bank statement.
The contingency I mentioned in my first comment was not a financing contingency, it was a condition vs offer price contingency because your offer could change based on what you find when you inspect it.
Sanger, TX · Member since 2015 · 4 posts · 4 votes
11y
Is it not a disservice to the seller when the agent refuses to show the property? With or without proof of funds every looker/caller is a potential buyer and could be the one. Personally, I think I would fire an agent who refused to show the house I was selling and report any other agent who refused to show it. Prejudging people is one of the biggest mistakes a salesperson can make and in my opinion may even be discriminatory.
I was running around with my kids one day and probably looked like a homeless bum since we just kinda ran out of the house to go goof around with no plan . We decided to look at jet skis and several salespeople ignored us. When the youngest salesperson came over and asked if he could help and I said "Write it up, Ill be paying cash today and want it detailed and lake ready by 4" I thought he would faint. We walked in his office and I pulled off 14 one hundred dollar bills and told him I would be back at 4 and not to make me wait.
It happens all the time. Just because someone doesn't look like what you think they should doesn't mean they aren't someone to be respected or reckoned with. Just saying...
Is it not a disservice to the seller when the agent refuses to show the property? With or without proof of funds every looker/caller is a potential buyer and could be the one. Personally, I think I would fire an agent who refused to show the house I was selling and report any other agent who refused to show it. Prejudging people is one of the biggest mistakes a salesperson can make and in my opinion may even be discriminatory.
I was running around with my kids one day and probably looked like a homeless bum since we just kinda ran out of the house to go goof around with no plan . We decided to look at jet skis and several salespeople ignored us. When the youngest salesperson came over and asked if he could help and I said "Write it up, Ill be paying cash today and want it detailed and lake ready by 4" I thought he would faint. We walked in his office and I pulled off 140 one hundred dollar bills and told him I would be back at 4 and not to make me wait.
It happens all the time. Just because someone doesn't look like what you think they should doesn't mean they aren't someone to be respected or reckoned with. Just saying...