Just wondering if it is possible to get funding before having a house under contact?
I have been basically handed a flip deal from a friend that only does buy and hold. He has told me that I need to get my finacing lined up before he will show me the property. It has the potential to give me 50-75k profit.
@Michael Whitener what your partner is asking for is commonly called a Proof of Funds (POF) that shows you have the capital or can access the capital to close. This can be in the form of your bank statements and/or a pre-approval letter from a lendner. Without such proof your friend would be wasting time talking to people who have no intention of closing.
Thanks for the reply Crystal.
I understand what and why he is asking for POF. I was wondering how do you get the funds without seeing the property first. I have a potential private money investor, but he wants to see what he is putting his money into. I have also considered hard money and crowdfunding but most want a contract closing date. Kind of a catch 22.
If your friend believes you when you tell him you javeprivate money, fine. If not, your private lender needs to give your omen type of preapproval/commitment letter....max amount of finds,certain LTV, etc.
I will see if I can get some sort of commitment letter from him. I have gotten a verbal.
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