Proof of Funds - Personal Loan From Family Member

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I am negotiating my first deal (fix and flip) and need Proof of Funds. Here is some background...

I've been going back and forth with a seller working through The original list price was just over $100,000. All my offers have been conventional financing and the last counter offer we received from the seller was the same as the previous counter offer, so I think we hit their bottom line? But I told my agent we were willing to offer our best and final offer as an all cash offer $14,000 below the most recent counter offer. That is our upper limit; we will walk away if we can't get it for that price. We will most likely NOT get it, but plan to try again in 3 or 4 weeks. (It's been on the market for over 150 day with very little traffic). Anyway.... My agent said we would need to provide POF, and here is where things get tricky...

I am getting a personal loan from my mom for the purchase price and rehab cost, less 20% of my own money. I will pay my mom a flat 3% for the loan once I sell the flip. She can easily pay me the money in one lump some. The 20% of my own money will come out of a loan against my 401(k). Oh, and for some reason, my mom does not want her name involved in any part of a real estate transaction. So here are some questions:

1) Who actually looks at the POF? Is it agents only? Will the seller see it?

2) Can I simply provide a printout of my mom's bank account as POF? Or does it need to be a letter from her financial institution?

3) My mom has enough to cover the full amount, so should I even bother providing my 401(k) statement and documentation showing how much I can withdraw for a loan? Or would it be better to show my "skin in the game?"

4)Last, my mom has more money in her bank account than the original list price. Would it be a bad idea to show POF substantially higher than the list price of the property we are lowballing? Could the financial institution write a letter stating that there is $XX,XXX in the account, and have that exactly match the offer amount, or state she has "at least" $XX,XXX in the account?

I may be overthinking this, but any advice would be much appreciated!


Rob Shedden