Proof of funds letter
My brother is lending me money to purchase my first fix and flip for a pretty hefty interest rate, but my realtor needs a proof of funds letter, he wants me to find a property first and present the deal to him for his approval before he will give any form of proof of funds letter for that property. My realtor wants the letter so she knows I'm a serious cash buyer. How does this usually work? I've heard a few different things. Does anyone have some insight on this topic?
A signed, notarized letter (affidavit) from your brother pledging the family loan and attached to it his VOD (verification of deposit).
VOD is most usually a copy of a recent bank statement.
Proof of Funds nowadays has become a joke as many 'lending partners' are selling them left and right to 'investors'.
Not legal advice, jmo experience.
PS - if you require his approval after you land a deal then you do not have cash available til (contingent!) he approves (which sounds very iffy).
Good bro, good luck!
Anyone else?
Nick shouldn't you first find a property you are interested in? Do you need this agent right now? Are you in a position to buy a multi family and live in it in order to get a 3 1/2% down payment? How much will your brother lend you? Have you found a property? How much interet is your btother charging?
Are you considering a BRRRR (Buy, Renovate, Rent, Refinance, Repeat)
Have you joined a local Real Estate club and a Local real estate meet up group?
BG
it's not only for your realtor but for the seller showing you're a serious buyer.
this is a bit off topic, but there is this program called photoshop that's really cool. Ok, back to your thread.
Neil did a decent job outlining how it's done.
Given circumstances, I'd simply get your brother to provide you something along the lines of a pre qualification letter.
This should suffice the realtor. He/she simply wants to make sure you are a serious buyer.
But what is your reason behind using a realtor anyways?