Linda here in Florida. New to the site. I am trying to get a proof of hard money funds letter to present to agents. I could jumpstart my business by weeks if I have this. If there is an investor willing to verify the letter I will put it together myself. Specifically I would use the letter to show agents that I have hard money funding available. I know how to get the funds but getting started is difficult especially when dealing with agents. money funds
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You should be able to get the proof of funds letter from the hard money lender.
Yes Linda, a Hard Money lender will issue you a POF Letter provided you can show that you do have capital to invest as well "skin in the game" as they say. They will typically fund up to 65% of after repair value, which means you must have verifiable funds to cover the balance & the debt service/ loan payment for 3-6 months perhaps more for a "new" investor.
Hard Money is truly geared toward a seasoned investor that has a team & system in place to move the asset quickly through the acquisition & re-sell stage. Remember: the most important part of your business is the Team of professionals you surround yourself with. Good Luck!
What is your goal for REI? If you do not understand how acquiring a POF from a hard money lender works, I am afraid you might actually bury yourself when you go to actually do your first deal. Borrowing money is no joke and REI is no playground for the inexperienced and uneducated.
Take everything I say with a grain of salt as I am completely new to REI, but I am going through my first investment process and have a private money lender who has just (within the past 20 minutes) sent a letter stating that he is committed to funding my deal up to X dollars. It was pretty informal - via email. Not sure if more formal letters are usually used.
TY everyone!! all of these answers are very helpful
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