Flipping in Baton Rouge, Louisiana

7 Replies

Hello BP Community

Anyone with experience in Louisiana Real Estate markets. Need advice on where, when, and how a Proof of Funds letter used or found in Louisiana. On my flips, always paid more than 1/2 of sales price or full price, and done rehab out of pocket. Thus never needed POF Letter.

Is this some Louisiana Law or just perk of the Seller?

@Alex Hamilton it is standard practice for MLS listed properties. It can be a bank statement or a letter from your bank stating an amount of funds available for cash purchase. You can get them from online websites, but if you really are a buyer, you will get one of the afore mentioned type of real POF.

It's not a matter of law, just common practice.

OK, I can only tell you from my experience in Wisconsin. Sellers who have been arround the block once or twice have been burnt by buyers that could not perform. few things are more frustrating than finding out the day of the closing that your buyer cannot perform. Back to square one: MLS, showings, offers, counter offers and a lot of time lost before the potential closing. Sometimes its an inexperienced wholesaler, who can't find a buyer. Or a rehabber who was counting on hard money and could not make it happen. On one of my current deals HUD requested my bank to confirm that they actually have pulled my credit score - it's calles a comfort letter and gives the seller more certainty that the deal will go through. For basically the same reason we always attach a letter signed by my realtor introducing me as a buyer and confirming that i have been buying properties since 2010 and never walked away from an accepted offer. Don't be offended, your bank will be happy to assist you with a POF letter to support your offer.

Originally posted by @Robert Leonard :

@Alex Hamilton it is standard practice for MLS listed properties. It can be a bank statement or a letter from your bank stating an amount of funds available for cash purchase. You can get them from online websites, but if you really are a buyer, you will get one of the afore mentioned type of real POF.

It's not a matter of law, just common practice.

 Leonard, lets be serious, why would anybody pay 1/2 of the asking price for the property you are selling up front in earnest, and not go through with the Sale.  This is Louisiana, one of the few States that refused the Affordable Care Act implementation in the State while we as Tax Payer pay for it as implemented in other States.  Some things just don't make sense

You got a point Robert, they may have the Gold,, and it being properties. in this business, Lenders who don't make loans, and sellers who don't make Sale, end up out of business with nothing. I suggest, you never wait on a POF letter when you have 1/2 your sale price in hand. What good is all the Gold in the world, if you can't use it or buy anything with it.

I pass boarded Homes held by Banks everyday, bringing down the property values in communities, and housing vagrants or criminals. You see, that Gold being properties, for the most part is not the sellers are the Banks, its HUD, FHA, FDIC, and comes right back to us, ours, as Taxypayers

@Alex Hamilton & @Robert Leonard - Guys, I'm piggie backing on your post. You both know I'm lending Baton Rouge Hard Money now. I'm going to encourage Baton Rouge, Ascension & Livingston investors to ask you guys about my integrity. 

Robert know me best. Alex & I meet occasionally at the local REIA (Baton Rouge RING).

Baton Rouge & surrounding parishes now have a local, face to face money source. 

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