All Forum Posts by: Carlina Burford

Carlina Burford wrote about a house she saw listed somewhere and then the conversation became all about funding. Perhaps I'm really out of it but I don't understand how one NEEDS to prove that they can fund a deal in all cases. Are we simply assuming that she'll need to prove that she's got the money to buy the place?  Somewhere I read (ie here) that this house is leaning or something and it has not passed inspections. My words may be off but I do not remember having to prove I had the money to buy a house I bought for $945K. I wrote and offer and the offer was accepted. The "I can't get any deals with out proof of funds" seems like a statement that is NOT based on experience, and the, "...and I can't get proof of funds without having a deal under contract" sounds ridiculous! If I have money in a bank and I go to that bank and ask for a statement stating that I have this money in my account such a declaration is easy to get AND it actually is less strong than my own bank statements on that same account that shows the money is aged. Sounds like this is a case of trying to pretend when pretending is not the answer. "Completely stuck on this one" ??

There's more, "I found a deal through a listing and am planning on wholesaling it but of course I can't submit an offer without having proof of funds". It seems like the potential with a house that is leaning may be be found in consulting with a foundation company or a house moving company. Talk to these people and get a price for fixing it all and then do whatever else a real buyer would need to do. Armed with this make your way to the owner and present a well-written offer without any contingencies.

Packaged correctly the owner of the property may want to proceed with you.  Get the right paperwork signed and give them something to seal that the offer is accepted and you may have something to sell.

You need to do some legwork and apply some real creativity and followthrough.  

In closing:

She writes:  "I like the ideas of having the funds to back me in any case so I am glad I am learning this now, but how do I go about this?"

You can pull this off without  'having the funds to back me' and in doing so you will show people (esp., those with money) that you have a certain set of talents,  and that itself will attract funds.

@Carlina Burford

There's no need for transactional funding in our state because nobody here does double closings (due to the excise/transfer taxes); the wholesalers just assign the contract.

Also, there's never a need to pay for a POF letter like @Dustin Frank mentioned... they're pretty easy to come by.  I definitely don't recommend COGO as a lender as they're pretty expensive.  We have plenty of hard money lenders in our state (I've borrowed from 15 of them myself).  If you need referrals for a local hard money lender who can give POFs easily, feel free to PM me.  You normally have to be pre-qualified in order to get the POF, but you don't need to have a deal in hand to do that.

@Jon Holdman A lot of wholesalers in our state tie up deals off the MLS at really low prices and sell them at a price that's still below listing. That still adds value and I don't mind paying a good negotiator a fee.

Also, I know we've argued about hard money not being considered a cash offer, but in our state it pretty much is. POF letters will work for cash offers. Every flipper I know that uses hard money will check that cash checkbox under the financing option. And most flippers here use hard money because they can't buy an ugly, moldy, unlivable, 700 sqft house for $400k in cash.

If, "The house needs to be torn down" you may be implying that its worth is the land value, or less, as there's the cost of removal.

Why will people show any different interest in the address after you, "get it under contract and then put it out to see if anyone would be interested... Being very transparent that is should be a tear down house" ??

Looking at the town where you are it seems there's no shortage of land, assuming your target is there.