CASH OFFERS AND PROOF OF FUNDS LETTER

Tax, SDIRAs & Cost Segregation
6yFollow

CASH OFFERS AND PROOF OF FUNDS LETTER

Jonathan Lane
Rental Property Investor · Tacoma, WA · Member since 2020 · 46 posts · 7 votes

Hello World, 

I have been doing research on  "cash" offers as an investor and the results I have came up with is a "cash" offer can be consider any funding that is or has the ability to be liquidated without contingency from a bank; i.e. hard money, private money or your own cash.  Is this correct? However, I was speaking with my real estate agent today and they mentioned that I could not offer a "cash" offer if the cash is: 1) Coming from a third party and 2) The cash offer has to come from my approved bank account. Is this correct?  That said, there has been some confusion set in and I am looking for clarity on: 1) how to go about a "cash" offer? 2) Define what a "cash" offer is? 

With all of that being said, does anyone have a legal soft proof of funds letter (pre-approval) that is editable and will work in all 50 states? If not, how can I go about obtaining something like that or can I even obtain a soft proof of funds letter? 

Connected to this email is a link of a soft approval letter- does this work? if not, what needs to be done for it to work? Or again, how can I can one that works in all 50 states that is approved by different brokers? 

I want to thank you for your time and your guidance on this topic 

Soft Proof of Funds Letter

Thanks, 

Jon Lane 

0Reply
31 views

Most Popular Reply

Patricia Steiner
Real Estate Broker · Hyde Park Tampa, FL · Member since 2019 · 2k+ posts · 3k+ votes
6y

Cash offers require a Proof of Funds Letter from the financial institution hold the funds and it must be signed by an officer.  Cash is limited to liquid assets that are seasoned (in an account 30 days or more) and available to you as an owner/beneficiary.  It would not include hard money financing or private sources of funds.  You cannot edit or provide your own proof of funds letter; when you do so, that's called fraud.  We had someone do that under the guise of bitcoin and the seller turned the guy into the FBI.  Not worth the drama...

I recommend that you call it what it is and provide pre-approval letters from your lending sources along with your financial institutions proof of funds letter(s) at the time of your offer.  It adds strength and let's the seller know you're ready to do business.  

All cash is always best - but ready to do business is as good. You don't have to fudge it.

1Reply
See this reply in the discussion

5 Replies

Jump to latestLatest
  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    6y

    @Jonathan Lane

    Cash offer to me means money already in your bank account or accessible.

    Private $ and or hard money is not cash as you are getting a loan.

    Reason this is the case is many people out in cash offers and don’t have the cash. Applying with a hard money lender is equivalent to a bank as your getting a loan.

    7e investments53 Reviews
    WebsiteView Page
    1Reply
  • Patricia Steiner
    Real Estate Broker · Hyde Park Tampa, FL · Member since 2019 · 2k+ posts · 3k+ votes
    6y

    Cash offers require a Proof of Funds Letter from the financial institution hold the funds and it must be signed by an officer.  Cash is limited to liquid assets that are seasoned (in an account 30 days or more) and available to you as an owner/beneficiary.  It would not include hard money financing or private sources of funds.  You cannot edit or provide your own proof of funds letter; when you do so, that's called fraud.  We had someone do that under the guise of bitcoin and the seller turned the guy into the FBI.  Not worth the drama...

    I recommend that you call it what it is and provide pre-approval letters from your lending sources along with your financial institutions proof of funds letter(s) at the time of your offer.  It adds strength and let's the seller know you're ready to do business.  

    All cash is always best - but ready to do business is as good. You don't have to fudge it.

    1Reply
  • Wayne Brooks
    Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    6y

    You’ve been reading too much guru crap....

    1) if you think a POF for a Cash offer is anything other evidence that buyer already has the cash In Their Name.

    2) you want to try working “in all 50 states”

    0Reply
  • Carl FischerPro Member
    Rental Property Investor · Ambler, PA · Member since 2015 · 2k+ posts · 1k+ votes
    6y

    My cash offers are accompanied with a check -either personal or cashiers- for the offered price as it is almost always a very fast closing. I don’t get asked for proof of funds at that point. Sometimes I owe a little more and sometimes I get a little back at closing. 

    [email protected]215-283-2868
    1Reply
  • Odie Ayaga
    Specialist · Delran, NJ · Member since 2016 · 2k+ posts · 951 votes
    6y

    Similar what @Chris Seveney said I would not call hard money cash because you still need to qualify for it. To me private money can be cash if it's provided to you without contingencies

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free