Proof of Funds

[James Dunn]

Can any investor out there help me with a verifiable proof of funds to get a property under contract i have

[Will Barnard]

Originally posted by @Moises Suazo:

@Will Barnard hey will, 

I'm afraid that the seller will feel misled when he sees that I provide my buyers proof of funds.  I'm basically trying to double close some properties in the future.  Can you please lend me some insight on how to handle this without upsetting the seller?

Moises, how you structure the offer makes all the difference. If you have a buyer already in mind for a particular property, then you have several options. Form a new entity with you and your buyer as shareholders (or managers if an LLC) and then the POF that comes from your buyer matches the name on the entity docs (you can also use a trust and name your buyer as beneficiary and you as trustee which would accomplish the same result). This way, there is no misleading to the list agent. Then, while in escrow or at closing, you sell your shares to your buyer for your "wholesale fee" and you are removed from the company or trust. (in the event of the trust, you resign as trustee and your buyer names a new trustee, you resign for your "wholesale fee").

Another is if you have trust between you and your set buyer, you can make the offers in your buyers name or entity name and have a separate legal agreement stating that any deals you bring him/her that close, you get a fee for. So your buyers POF matches the vesting on the offer and no misleading there either. These are just two of several ways to accomplish this.