Proof of funds letter

6 Replies

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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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! 

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.