Can I get a POF from a Hard Money Lender?

Question

I am interested in submitting an offer on an investment property that went into multiple offers with a deadline of 3pm tomorrow. I want to provide a proof of funds letter so I was going to go with hard money, but the hard money lenders are sending me a preapproval letter for cash instead, defeating the point of a cash offer. Is there a way to get an actual POF on a hard money loan?

Jay Hinrichs · Answer

POF from HML should simply state they reviewed your financials and subject to title and values they are prepared to loan X % against any property you find.

CJ Berina · Answer

I'd probably just ask your hard money lender. I don't see why they can't get that in writing for you.

Eliott Elias · Answer

Nope, the pre approval of cash should be just as effective as cash in hand. You can close just as quick

Luka Milicevic · Answer

@Mary Eubanks

When I use hard money, my "proof of funds" is he pre approval letter from the lender.

I don't have a financing contingency, so at the end of the day if I don't get funding from the lender I lose my earnest money.

I haven't had issues with sellers going this route, especially when I have a 1 week close.

Michael Kinsella · Answer

@Mary Eubanks It's dependent on the lender. Them sending a pre-approval for cash doesn't make sense.

What @Jay Hinrichs said is spot on with respect to the process and content of the PoF.

Kevin Sobilo · Answer

@Mary Eubanks, perhaps ask yourself the question "Is it a cash offer when you are using a hard money LOAN?" I think the fact that LOAN is in the name says it all. It isn't really cash even if its easier and quicker to get than other types of loans.

If you are concerned about competing with cash offers put up a MUCH larger deposit and do not have a mortgage contingency. That will show you are serious. If you give a $10k deposit when others are giving $2k, they might consider your offer more seriously even compared to cash offers.

Can I get a POF from a Hard Money Lender?

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