I've bought and sold a number of homes in my life , and even flipped a couple but I've always used conventional financing.
Lately I've run across a couple properties on the MLSthat's say hard money or cash only , bring proof of financing .
As I understand it, hard or private money depends on the property/deal and not the borrower for approval. So is it possible to get some type of funding commitment when I don't yet know which property I'm interested in?
The reason I'm asking is because I'd like to get as fast a close as possible!
I’m definitely interested in perspective on this. This prevented a deal from happening.
Most of the time no, the hard money lenders want you to have the property under contract before they even give you a quote.
Some asset based lenders can generate a pre-approval letter up to the amount that you qualify. Once you verify the source of your down payment and have a credit report on file as an indicator, you should be able to obtain a pre-approval letter.
Thank you for the responses. I've been contacted by several lenders, and will post a summary of my findings. I appreciate the different feedback!
@Robert Reineri You can get a proof of funds letter based on your experience, credit score, and amount of cash you have available. I've never seen a seller reject one. It is a very quick pre-approval process. PM me if you want some additional details.
To add to Eddie's comment, just make sure you fully understand what those lenders parameters are and make sure that the properties you are looking at fit those parameters. They all have their own guidelines on LTVs, ARVs, DSCR's, etc etc. So if you find a lender you like, just make sure you fully understand what there guidelines are, especially if you are flipping, so that you don't get left out in the cold at the very last minute as they may pre-approve you based on your strengths, however you still have to find deals that meet their criteria.
"You can get a proof of funds letter based on your experience, credit score, and amount of cash you have available. I've never seen a seller reject one. It is a very quick pre-approval process. PM me if you want some additional details."
Sorry if this is a faux pas request. But any chance you would share these "additional" details openly in the forum?
BTW, why do so many RE professionals, ESPECIALLY private/hard lenders, always want to 'continue over PM'?
@Greg K. BP doesn't allow me to provide details in open forums. It is considered marketing/advertising. BP provides a pay forum if I want to market.