I Need A Proof of Funds Letter Today!

Investor · Detroit, MI · Member since 2008 · 296 posts · 11 votes

I have a seller, and a buyer lined up. I need a free proof of funds letter as soon as possible. Can anyone help me with this task? Also can anyone recommend to me any great virtual title companies?

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Rheutelia Cummings

Real Estate Investor · Los Angeles, CA · Member since 2010 · 5 posts · 29 votes

15y

I agree with you Richard. To the young lady. ... I would ignore all the discouraging comments. Each and every person who commented negatively or felt the need to put their 2 cents in had to start from somewhere as well. I say try it... and if you fail at it then you know what to do next time around. You learn the business by doing...not by taking advice from discouraging people...who probably lack the proper education, which is why they did not provide you with a solution... (That has been my experience in the past) Biggerpockets is a networking site to help new investors, not to discourage others. So to all those individuals who had 2 cents worth of comments... should go by the old saying.. " If you don't have anything nice to say, then don't say it at all"!! Instead, I would offer her some advice that is worth more than a penny!

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Mark Hales
Bloomfield, CT · Member since 2011 · 1 post · 1 vote
14y
Coastal Funding will give you a free proof of funds letter.
1 Reply
J ScottPro Member
Moderator
Investor · Sarasota, FL · Member since 2008 · 18k+ posts · 17k+ votes
14y
Originally posted by Mark Hales:
Coastal Funding will give you a free proof of funds letter.

And most REO sellers will ignore these "proof of funds" letters these days...
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Randy F.
Contractor · Anchorage, AK · Member since 2012 · 351 posts · 196 votes
13y
Originally posted by Rheutelia Cummings:
I agree with you Richard. To the young lady. ... I would ignore all the discouraging comments. Each and every person who commented negatively or felt the need to put their 2 cents in had to start from somewhere as well. I say try it... and if you fail at it then you know what to do next time around. You learn the business by doing...not by taking advice from discouraging people...who probably lack the proper education, which is why they did not provide you with a solution... (That has been my experience in the past) Biggerpockets is a networking site to help new investors, not to discourage others. So to all those individuals who had 2 cents worth of comments... should go by the old saying.. " If you don't have anything nice to say, then don't say it at all"!! Instead, I would offer her some advice that is worth more than a penny!

You cannot ask a question and then expect to dictate what answers you will receive. When someone asks a question, they are opening themselves up to varied opinions from a large number of posters, all of whom have as much right to respond as the original poster has to post.

Think of it this way... To be effective and successful in business, one needs to have a thick skin. If that business happens to be RE investing, BP is just the place to grow one! If that doesnt work for ya, all you have to do is wait... You will eventually receive the answer you were looking for.

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Randy F.
Contractor · Anchorage, AK · Member since 2012 · 351 posts · 196 votes
13y
As far as a POF letter for someone with no funds to prove... As my Dad always told me... "there aint no free lunch".
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Bill W.
Real Estate Investor · Austin, TX · Member since 2009 · 171 posts · 46 votes
13y
I realize this is an old topic but I need clarification on why the OP is even asking for a proof of funds letter. She stated that she had a buyer and seller lined up. If she had a real buyer on a wholesale deal, the letter can, should and could come through the buyer, right? What scenario would make her think she has a buyer who can't provide a letter?
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Randy F.
Contractor · Anchorage, AK · Member since 2012 · 351 posts · 196 votes
13y
Guess I need to check original post dates. Oh well...
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Wayne Brooks
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
13y
Bill,
The OP needed POF in her name because she wasn't up front with the seller. The seller thought SHE was actually buying it. POF in the end buyer's name make the most sense of course.
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Jonathan Thomas
Wilkes Barre, PA · Member since 2013 · 3 posts · 1 vote
12y
I am not a real estate expert but even I know the only thing in life that is 100% guaranteed is death! You can have x amount in the bank to later find out there was a mistake in your account, no human knows the future! Using your funds is more likely to close but the truth is only death is guaranteed!
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Account Closed
Fort Worth, TX · Member since 2012 · 3 posts · 4 votes
12y
Tiara,

You used the term "proof of funds", but I believe that you're looking for a prequalification letter. Proof of funds would typically be a bank statement in your name. It could also be a bank statement in someone else's name, but would need to be accompanied with a commitment letter stating that the owner of the account is willing to lend the funds to you.

The best way to get a prequalification letter is to search for hard money lenders in your area. Some may have them posted to their website. Some may be able to email one to you if you call and speak with them. Keep calling and searching until you have what you need.

For the record, although a false proof of funds statement is fraudulent, as many people mentioned above, there is nothing illegal or unethical about using a prequalification letter from a hard money lender.
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Darrell Shepherd
Rehabber · Smyrna, GA · Member since 2013 · 864 posts · 510 votes
12y
POF's are hooey in my opinion, but are getting required because too many people were putting houses under contract they had no ability to buy, then shopping the deal and backing out when they couldn't find a buyer. I had a wholesaler ask for POF before he showed the property. I laughed at him. There are so many of them out there that are worthless (including the ones I provide because I don't want to bother my lenders with that crap) I don't know why they even bother. I usually just put up $10-$20k in earnest money if they give me much grief. That usually shuts them up. Most REO's around here have a 30-90 day special stip in the deed so you can only double close buying from individuals. Not that I ever do that. Anyway, sounds like the OP got her problem solved. Good luck, but please make it a point to perform if you put a house under contract. All this guru wholesale stuff muddies the waters for the rest of us when you don't.
1 Reply
Mike Bowman
Real Estate Investor · Chandler, AZ · Member since 2014 · 2 posts · 0 votes
12y
There are a lot of interesting comments on here. I am starting out and I see Mrs. Cummings comment to straight and to the point. Thank you Bridget, I hope I will get an opportunity to work with you in the future. I also agree with the comments that PROOF OF FUNDS is a miss-utilized word. If anyone has any contacts that would like to help out a new investor please let me know
Mike Bowman
[email protected]
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Garrett Collins
Investor · Atlanta, GA · Member since 2014 · 20 posts · 0 votes
11y
hi my name is Garrett Collins I have a question I am up against a wall about proof of funds letter or private money lenders what is the best way to go to be honest and safe and have less problems at closing would it be best to go with a private money lender in partnership or a proof of funding letter that will not guarantee on the closing every time I know it probably would be better to go with a private money lender if the numbers are right and paperwork is legit what do you all think hit me back please
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Jimmy Cantave
Investor · Miami, FL · Member since 2014 · 82 posts · 19 votes
10y
do not listen to ignorant people who are just trying to stop you from continuing........people learn from their mistakes so search online for POF..to get this deal......
3 Reply
Jeff B.
Buy & Hold Owner · Redlands, CA · Member since 2015 · 5k+ posts · 2k+ votes
10y
@Don Konipol corrected the usage.
The POF (aka verification of funds letter from a bank) only says money exists, while
the Loan Pre-Approval letter says the lender is read to lend on this property for this person.
You need BOTH to have a bonafided offer :)
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J ScottPro Member
Moderator
Investor · Sarasota, FL · Member since 2008 · 18k+ posts · 17k+ votes
10y
Originally posted by :
The POF (aka verification of funds letter from a bank) only says money exists, while
the Loan Pre-Approval letter says the lender is read to lend on this property for this person.
You need BOTH to have a bonafided offer :)
You don't need both -- you need one or the other...
A POF is used when making a cash offer -- it is typically a bank statement or a letter from the bank indicating that the buyer's account contains liquid funds in an amount that can cover the cost of purchase.
A loan pre-approval is used when making a financed offer -- it is typically provided by a reputable lender indicating that the borrower has been preliminarily underwritten for an amount adequate to cover the cost of purchase.
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Wayne Brooks
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
10y
@J Scott Yeah, when I get both it's usually bogus, or from some local coaching/mentor wholesale "student".
2 Reply
Harold Johnson
Professional · Baltimore, MD · Member since 2011 · 1 post · 0 votes
10y
I am investor with a current cash flow investment project and seeking a proof of funds letter to complete a transaction to purchase a Quality Inn and Conference Center. Need a proof of letter to closeout deal and become an Hotel owner. This is a real offer attempt to receive a bank /Lender proof of funds letter.
Harold Johnson
JDInvestment
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Wayne Brooks
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
10y
@Harold Johnson A "POF letter" isn't going to help you buy a hotel.....actually having the money will.
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
10y
@Wayne Brooks I was wondering if you were going to jump in on this pearl..
amazing NO?
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Wayne Brooks
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
10y
@Jay Hinrichs SMH while LMAO.....
1 Reply
Morenike Arraheem
Real Estate Investor · Portsmouth, VA · Member since 2015 · 14 posts · 8 votes
10y
I recently had a real estate agent that I inquired about properties with, to send him proof of funds. I thought that was strange considering most HML only send that after you've sent them home information and have a deal set up.
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Adam Adams
Podcaster & Multi-Family Apartment Investor · Denver, CO · Member since 2016 · 273 posts · 138 votes
10y
Rheutelia Cummings Thanks for your post.
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Jeran Hoobler
Wholesaler · Palm Coast, FL · Member since 2012 · 2 posts · 0 votes
10y
************************
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Jeran Hoobler
Wholesaler · Palm Coast, FL · Member since 2012 · 2 posts · 0 votes
10y
Transactional funding .com
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J ScottPro Member
Moderator
Investor · Sarasota, FL · Member since 2008 · 18k+ posts · 17k+ votes
10y
Originally posted by @Jeran Hoobler:

Transactional funding .com
With this company and others like it, you'll give a hefty part of your profit away to the funding company -- typical costs are $5-10K per deal when you're borrowing $200-500K.
Definitely not worth it in my book -- just find a local investor who will partner with you and put up the money for 25% of the profits. There are plenty of us out there who are happy to do this all day...
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