When an REO asks for a Bank Statement and you don't have the funds?

Question

As a wholesaler in Miami, I am making a few offers and they are asking me for a bank statement, before we used proof of funds from our transnational funding source. There are a few ways to do this but I want to know what is working in the Miami Market and how to get past the bank statement request.

Thanks,

Ivan in Miami

Thanks,

Ivan in Miami

Bryan R. · Answer

If you don't have the funds it isn't a cash offer. You're making an offer contingent on financing and should indicate so on your offer.

Rick Pozos · Answer

Partner with someone who has the big bank statement. If it is a great deal, you will only make half the profits, but half of a great deal is better than all of a deal that did not get done.

Steve Babiak · Answer

Unethical and possibly even fraud if the "friend" does not have deposits or open lines of credit with the bank totalling to at least what you stated in the proof of funds letter. I do get such letters from my bankers, but I also do have the account statements to verify, so that they aren't being asked to commit fraud of any sort.

Nelya Calev · Answer

find a hard money lender, qualify with them. Get approved and use their approval to write your offers. I am an REO listing agent and see this tactics used by many investors. Legal and ethical

Ned Carey · Answer

No you wouldn't typically modify your "existing corporate structure." Most investors would just do a joint venture agreement for this specific deal, or simply do it as a loan.

J Scott · Answer

Double closings are just two separate transactions -- a purchase and a sale -- and therefore should be legal in any state.  That said, you'll be hard-pressed to find a title company or closing attorney who will allow you to use the proceeds from the second closing to purchase at the first.  You'll likely need your own funding for the first closing.

J Scott · Answer

As a seller, I'd be fine with any of those three things...as long as it included a large, non-refundable earnest money deposit in addition.  Without a POF or a non-refundable earnest money deposit, your words are just words...

Christian Bors · Answer

http://www.biggerpockets.com/renewsblog/2015/03/30...

Account Closed

Jeff Copeland · Answer

I agree with Nelya Calev about getting approved for a hard money loan. If the numbers work, they'll usually provide proof of funds the same day.

(I've found Bridgewell Capital out of Orlando very responsive as long as you meet their underwriting requirements).

So you have POF for your offer, then, if the deal moves forward, you have more options with regards to funding it.

Just don't take advantage of your HML and only use them for proof of funds. In many cases, it makes more sense to use their money anyway (certainly better than splitting profits 50/50 on most deals).

Clinton Smith · Answer

Are there any  wholesalers that have performed a Double Closings in a wholesale deal? And is it ethical and is this a legal transaction in your state?

Thanks,

Clinton

When an REO asks for a Bank Statement and you don't have the funds?

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