Need $5.4 million Proof of Funds Letter
I did a pre-construction flip in Palmdale in 2004 where I turned a $7,000 cash Investment into $182,500 of equity in 18 months. In 2005 I helped two friends each turn $10,000 into $25,000 cash in 4 months and $50,000 cash in 6 months, respectively.
Now 12 years later I'm doing it again. I have 6 pre-construction properties under reservation in Santa Clarita, CA. Each property will have a purchase price of about $850,000 (over 4,200 square feet). I put $5,000 down on each property. It will take at least 4 months (probably more than 6 months) for them to build the properties (they don't even have permission from the DRE to sale these lots and they haven't pulled permits from the City).
In the meantime, the builder will continue to sell more properties at increasing prices. We will wait until about 2 months before they are scheduled to complete the houses and we will market the individual purchase contracts to buyers who are willing and able to pay the price that the builder is offering houses at that time, but don't want to wait 4-6 months for a house to be built. The buyers will use our purchase agreement to purchase the property and will pay us the difference between the price that the builder is offering and our purchase contract price. Since we "own" the purchase contract for $5,000, we only need the builder's new price to increase by $5,000 for our purchase contracts to have equity. That less than a 1% increase in 4 months on a $850,000 purchase contract. Prices in this tract increased by $30,000 in the month of March 2017!
So I need a $5.4 million Proof of Funds letter ($900K per property) showing that my company has the capacity to purchase these 6 properties as a cash buyer. I can also use separate letters of $900K each for each property since each property will be controlled a separate LLC. So here's the deal:
- We will not actually use your funds, just your POF letter
- We will pay either a flat fee that will be paid upon closing of the purchase and sale of the property, or
- We will split the profit 50/50.
I have another community in Temecula that we will be doing the same thing over the summer (about 10 homes with a purchase price of around $750k each for $5,000 each), so I will need to reuse the POF letter (date will need to be updated.
Contact me directly at 831-760-6711 and I will go over more details.
Stay Blessed!