I want to make an offer on a short sale property, but I will be looking for a hard money lender or a business partner to bring on board to finance the deal. The problem is that the bank won't accept my contract offer without a "proof of funds" letter.
Is there a way to get around this? Any advice is appreciated.
POF or a real preapproval from a lender. Banks aren't interested in wasting time on someone hoping to flip, or hoping to find financing later. Also, the listing agent/seller would be an idiot in accepting such an offer.
Thanks Wayne. Unfortunately, that is exactly what I was looking to do, so I could put it in an LLC or LLP and not have the personal liability. I have the means to finance it myself, so maybe I will get a pre approval to get it under contract and look for the alternative financing once it is secure.
Find a lender first, get a pre-qualification letter, and submit that with your offer.
Thanks J. I was hoping to put a stronger offer on the table by offering cash and quick closing. I was also hoping to avoid any personal liability in the event the deal goes wrong. The property is a great investment. 7 units, four with long term tenants who want to stay, three that need varying degrees of renovation (from paint and carpet to taking one down to the studs). At current rates for that building, the gross when fully rented will be 2.5% of the purchase price (of course we don't know what the bank will take on the short sale) and the building's structure and utilities are in great shape. I would prefer to have a partner with capitol to finance it, but I don't have a track record and I want to act quick, so I guess I will go with bank financing.
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