Orlando, FL · Member since 2009 · 2k+ posts · 282 votes
For an offer made by an LLC, will the banks accept a POF of your personal funds, or does the money actually need to be in the LLC's bank account at the time the POF is given? Thanks.
Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
14y
In general, banks want to see POF in the name of the buyer (in this case, the LLC). That said, many asset managers are lazy -- or don't care very much -- and will either not check very closely the name on the account or not have an issue with the funds being in your name so long as you are a principal in the business.
So, in short, the answer is that "it depends on the particular bank and asset manager"...
Full-Time Investor · Charlotte, NC · Member since 2009 · 2k+ posts · 1k+ votes
14y
jim, voted for both parts of your post...j does usually say things better than i can..that's why i tried to not argue politics with him back when it was allowed :)
bienes, i've never had a problem using mine or a partner's POF as long as we were listed on the articles or organization for the llc
Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
14y
Just to add one example -- the one seller I have seen who would likely require POF specifically in the name of the LLC would be HUD. They are notoriously inflexible about treating a purchasing business entity separately from the owner/manager of the business. Not saying they wouldn't go for it, but I'd be surprised.
And, as Bryan and Jim said, other banks will probably be fine with it, especially if you're willing to press the issue and provide a good chain of documentation between you and the entity.
Lexington, KY · Member since 2009 · 2k+ posts · 1k+ votes
14y
Our primary lender has never cared either, but we also personnaly gurantee our loans which may or may not make a difference. Generally, I believe the lender wants to know the money is there, but some are more strict than others.
Flipper/Rehabber · cincinnati, OH · Member since 2009 · 211 posts · 59 votes
14y
In addition many time the agents are inputting these into an automated system where they just have to check yes or no for POF. Never had a problem with funds being in personal name or a partners.
Orlando, FL · Member since 2009 · 2k+ posts · 282 votes
14y
Originally posted by J Scott:
Just to add one example -- the one seller I have seen who would likely require POF specifically in the name of the LLC would be HUD. They are notoriously inflexible about treating a purchasing business entity separately from the owner/manager of the business. .
That doesn't surprise me. In my dealings with them I've found them to be inflexible about everything else as well.
Real Estate Investor · Virginia, DC &, MD · Member since 2008 · 261 posts · 71 votes
14y
$$ in LLC and in my personal accounts have both worked for me. I have never been questioned either way. It's just a formality. Just because someone provides a faxed copy of a 3 week old bank statement doesn't guaranty that the funds will be there at closing. The whole process is just a formality.