Private Lender Pre-Qual Letter- What's Your Success Rate?

Question

Has anyone ever had any luck (when using private money) getting the seller (REO) to accept a pre-qualification letter from a private lender?  For the successful attempts, would anyone like to share how it's worded?

I have a private lender that wants to use a business LLC to fund a deal for me. I am taking title in my business LLC. The seller wants to see either proof of funds or a pre-qual. I am stretching to get this deal and don't have the liquid funds right now to show the proof of funds myself without refi on an existing asset (not enough time anyway). I am hoping they are ok with a letter from my investor stating that he will fund the transaction. I want the wording and format to be spot on.

Any tips will be appreciated!

Ron S. · Answer

As a lender selling an REO to you, I would have no issue with private money prequel as long as all parties and the subject property were on the letter, along with numbers that matched or exceed what I wanted for my net. What I would do then is make sure your earnest money were sufficient enough to make it sting a little if you or your private lender backed out and, I'd make you waive each contingency as they come up for expiration, with no extension.

Phil Z. · Answer

Just have the lender provide a letter that they pre-approved you for $xxx.xx

If the lender is a person (like a family member), they may also have to include their proof of funds with a letter stating they will loan the money.