Hard Money/Private Money Pre-Approval

23 Replies

I wanted to see if there is anyone that knows if hard money lenders provide pre-approved loans or proof of funds for investors, similar to how traditional lenders provide pre-approved mortgages which are pending final approval. 

It seems as though I am in a catch 22 as we are currently in a competitive market when it comes to finding deals and that would provide a good return. A lot of the good value deals are major fixer uppers, foreclosures, or short sales which would not be eligible for conventional mortgages and the brokers require proof of funds before even considering your offer. 

I wanted to see if anyone had a solution to this problem or if anyone knows of a hard money lender which can provide a pre-approval letter or proof of funds letter to facilitate a deal. Thanks all

HML sure do provide proof of funds letters!

Originally posted by @Solon Stephanou :

I wanted to see if there is anyone that knows if hard money lenders provide pre-approved loans or proof of funds for investors, similar to how traditional lenders provide pre-approved mortgages which are pending final approval. 

It seems as though I am in a catch 22 as we are currently in a competitive market when it comes to finding deals and that would provide a good return. A lot of the good value deals are major fixer uppers, foreclosures, or short sales which would not be eligible for conventional mortgages and the brokers require proof of funds before even considering your offer. 

I wanted to see if anyone had a solution to this problem or if anyone knows of a hard money lender which can provide a pre-approval letter or proof of funds letter to facilitate a deal. Thanks all

Kerry is correct. However, you want to make sure these letters come from the actual lender instead of a company that just generates a POF letter as a free service. It works in some cases but savvy brokers are aware when it's just that. We provide conditional loan approvals but only when a 1003 and recent credit is submitted. When it's from a legitimate lender and not a generic letter from a site that provides the service, it carries more weight when submitting your offers or getting extensions to purchase contracts.

Thanks @Kerry Boyle and @Copelon Kirklin . Do either of you have any recommendations for HML's who do business in the NYC/NJ areas. I contacted one who I previously interacted with on this site, but then when we were discussing everything, his rates and points were at a premium and wasn't willing to budge on the preapproval letter. I worked with another person in the past, but he's no longer lending which is inconvenient since he was an easy person to work with. Any recommendations would be helpful.

Originally posted by @Solon Stephanou :

Thanks @Kerry Boyle and @Copelon Kirklin. Do either of you have any recommendations for HML's who do business in the NYC/NJ areas. I contacted one who I previously interacted with on this site, but then when we were discussing everything, his rates and points were at a premium and wasn't willing to budge on the preapproval letter. I worked with another person in the past, but he's no longer lending which is inconvenient since he was an easy person to work with. Any recommendations would be helpful.

Shoot me a PM and let's discuss from there.

@Solon Stephanou Yes, I believe ALL private lenders do provide Proof of Fund Letter to you for you to give to seller when you submit the offer.  

I received 2 prequalification letters from Quickline Capital yesterday. This is my first time working with them and so far they respond within hours, so I like the customer service so far. PM me for their info if you're interested. 

@Jacqueline Mann  Thank you for the kind words Jackie!   It means a great deal getting a referral.   Please feel free to call me anytime (even on weekends).   I know you chase deals 7 days a week so I keep myself available as well.   Tim

Thanks @Jacqueline Mann . I was able to get in contact with Tim and he provided me with the preapproval in under 20 minutes of submitting my info which was significantly faster than I expected. It's also on great terms. 

Thanks for all the help

+1 for Tim @ Quickline Capital! I found a deal on a Saturday morning and had a few other lenders on the phone who told me they couldn't get me an approval until Monday morning. I got a hold of Tim that afternoon after seeing this post and had an approval within 30 minutes! 

Hey i have been looking for deals myself. I think i have found a few potential deals just needs to be funded. But i have also ran into a problem of meeting a proof of funds letter and verification. Would Tim be able to help?

@Jacqueline Mann Hello Jaqueline. I see that you have work with Quickline Capital. How did everything go and do you recommend them. Thank you
@Melissa Nesbitt Hello Melissa, how are you? I see that you work with Tim from Quickline. Just want to know, about your experience with that company and if everything worked out. I'm looking for somebody and it has been hard. Thank you, Malvin

how do you get a pre approval letter..I'm trying to buy a house for myself..if funding is available....thanks in advance...mary rainey

Any preapproval that you can get online in 30 minutes means really nothing.  An informed seller agent should sniff this out rather quickly.

Originally posted by @Mary L Rainey :

how do you get a pre approval letter..I'm trying to buy a house for myself..if funding is available....thanks in advance...mary rainey

If you are planning on using a Hard Money Lender, just contact one and ask for it. They may require docs such as a copy of your soft credit pull and a bank account balance showing funds.

Note however that a pre approval is not a commitment to lend.

Cheers.

Originally posted by @Benjamin Hurwitz :
Originally posted by @Mary L Rainey:

how do you get a pre approval letter..I'm trying to buy a house for myself..if funding is available....thanks in advance...mary rainey

If you are planning on using a Hard Money Lender, just contact one and ask for it. They may require docs such as a copy of your soft credit pull and a bank account balance showing funds.

Note however that a pre approval is not a commitment to lend.

Cheers.

ergo for me as a seller a HML pre approval means nothing.. but to many it will work if they are not sophisticated in the business..

@Mary L Rainey what are you attempting to do? what type of house? are you house hack? how much? are you living in it or rehabbing? Sounds like this would be your personal living residence.

Originally posted by @Jay Hinrichs :
Originally posted by @Benjamin Hurwitz:
Originally posted by @Mary L Rainey:

how do you get a pre approval letter..I'm trying to buy a house for myself..if funding is available....thanks in advance...mary rainey

If you are planning on using a Hard Money Lender, just contact one and ask for it. They may require docs such as a copy of your soft credit pull and a bank account balance showing funds.

Note however that a pre approval is not a commitment to lend.

Cheers.

ergo for me as a seller a HML pre approval means nothing.. but to many it will work if they are not sophisticated in the business..

Sure. But it comes a full circle, the sophisticated seller probably gives sufficient opportunity for the buyer to arrange a HML without needing a pre approval.

Originally posted by @Benjamin Hurwitz :
Originally posted by @Jay Hinrichs:
Originally posted by @Benjamin Hurwitz:
Originally posted by @Mary L Rainey:

how do you get a pre approval letter..I'm trying to buy a house for myself..if funding is available....thanks in advance...mary rainey

If you are planning on using a Hard Money Lender, just contact one and ask for it. They may require docs such as a copy of your soft credit pull and a bank account balance showing funds.

Note however that a pre approval is not a commitment to lend.

Cheers.

ergo for me as a seller a HML pre approval means nothing.. but to many it will work if they are not sophisticated in the business..

Sure. But it comes a full circle, the sophisticated seller probably gives sufficient opportunity for the buyer to arrange a HML without needing a pre approval.

agreed especially if said lender is known locally or regionally or nationally..  but you know the companies that were charging 50 bucks for one.. that type of thing..  

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@Solon Stephanou Have you set up phone or face to face meetings with any HMLs yet? Every one I have ever dealt with will tell you exactly what they need from you to give you a POF/pre-qual letter when you find a property you want to put an offer on.

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