Real Estate Agent · Belleville, NJ · Member since 2015 · 408 posts · 94 votes
Hi everyone,
I am writing this because of the wealth of information here on BP. I am a new Realtor out of Northern NJ. I plan to work heavily with investors in the area. Background: I have a few investors I'm working with and they want me to submit offers for them. Now I have for a few but I've noticed that many of them use Plan D Investments as their Proof of Funds. I looked up the company and it is very vague. However, I did find it linked to Best Transactional Funding (a website). Again, I can't find much on the site except what it says. Apparently they give transactional funding and work from a to b and then b to c aka helping in case they need to wholesale. Long story short, is this company legitimate in its practices? I see a lot of investors using them and I don't want to get in any trouble due to my lack of knowledge. Also, I was told by an REO agent when submitting an offer that this company was illegitimate, but I've had other offers pending still (none accepted yet).
Thought I'd add my 2 cents on this one. I worked with Duane and BTF on transactions in the past. Every single POF letter used on a deal was acceptable and I closed with them. The key to making these deals work with transactional funding is to work the transaction BACKWARDS. You MUST locate the end buyer first. Find out their criteria, make sure they have the funds, then use the POF letter to place the property under contract. Also, this type of transaction is not suited for conventional financing. Cash or hard money are the best methods to use when speaking of the end buyer and their funds. But yes, unless you have an end buyer FIRST, every other component in the transaction is a waste of time.
Real Estate Broker · Atlanta, GA · Member since 2017 · 229 posts · 145 votes
7y
I just had a buyer send a Plan D proof of funds letter and thought it smelled funny from a "cash" buyer. After a little bit of research, I found their free proof of funds generator: http://besttransa ctionfunding....
Oklahoma City, OK · Member since 2017 · 7 posts · 0 votes
6y
It always amaze me when people comment on things that they have a misunderstanding about. Any one that offers a pof would protect themselves even if you were using your own bank. The end buyer provide that protection. There are a lot of investors including seasoned one uses this pof. Be not of your own understanding educate yourself.
@Johnathan Boyle You are wasting your time, and the sellers time, with these "investors". They've chosen you because any agent who realizes what they're doing won't waste their time with them. These are Not legitimate POF's for your purposes. While they may actually provide transactional funding, they provide it Only if your buyer/wholesaler can go find a real buyer to flip the property to, and that buyer puts their cash in escrow, Then the transactional lender will place the money for the A to B transaction in escrow since an end buyer has put up their cash. If your wholesaler can't find a real buyer to flip it to, then the POF from the transactional lender means absolutely nothing, since they won't fund. This why the REO agent, and any other knowledgable agent, will tell you these are useless. A POF means the Buyer named on the cash purchase contract has the cash in their name in the bank, period.....nothing else qualifies.
It definitely doesn't make sense to trust a POF that anyone can get at any time without any check or proof. The thing is most of active investors don't have hundreds of thousands dollars sitting without use, so if you really disqualify everyone with POF from private or hard money lender and only work with those having money in the bank. You end up working with 10% of buyers and selling your clients property for pennies on a dollar