Good evening everyone I am very interested in making a few offers on HUD properties and REO properties. I have a few questions and hopefully someone can help me. Thank you for your time.
#1 If i am making and all cash offer (in hopes of flipping it to an End Buyer) will i need a pre-qualification or Pre-appoval letter? My plan is to use Transactional Funding.
#2 If i use Transactional funding will the funds need to actually need to be in my personal bank account? and will they check my personal Bank statements?
#3 Is it a good idea to try and get a pre-approval letter or pre-qualification letter from a Hard money lender?Or will i have to do this anyway?
For an all cash offer offer, you need POF-proof of the cash-in Your bank account, in your name, not a preapproval letter. If offering with a financed offer, then you need a preapproval from a Legitimate lender.
HUD generally will accept POF's from transactional funding companies. However, some specific HUD offices or the listing agent may not accept them. When using them most do not require to see a bank statement, but some will ask for it. If using transactional funding the funds would not go to your bank account, but would go directly to title. Keep in mind that making an all cash offer does not preclude you from using transactional funding, or a mortgage for that matter. It simply eliminates you contract contingency allowing you to get out of the contract due to lack of funding approval. Some realtors do not understand this, but most do.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Join the Largest Real Estate Investing Community
Basic membership is free, forever.