Am I on drugs, or will this work? - Posted by Adam King

Real Estate Investing
1

Posted by Adam King on July 08, 2002 at 18:28:46:

Thanks,
We’ll give this is a shot. It’s time to start making offers.
Adam

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Am I on drugs, or will this work? - Posted by Adam King

Posted by Adam King on July 08, 2002 at 14:53:04:

Just got off the phone with a landlord/investor. One in which we began to talk about me finding homes for him to rehab/hold etc. As most of you may know, Proof of Funds can be difficult in this game. So here’s the question.

I figured I’d take the conversation all the way to the bank since it was going so well. (Got his name from a ?for rent? sign.) I asked him if he would allow me to use “his” proof of funds to show the bank when “I” got the home under contract to flip to him. I.e. I make the offer showing that “his” money will be used to purchase the house, but with the full intention of assigning my contract to him. I want to know if anyone has done this, or if it can work or if there are any problems? I got him to say YES, and if I can do this all day long, then I finally have that “proof of funds” letter.
Opinions please!
Adam

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Re: Am I on drugs, or will this work? - Posted by Gerald-DC

Posted by Gerald-DC on July 08, 2002 at 19:49:09:

I think your plan could work but it could invite too many questions from sellers, especially REO properties.

If I were you, I would keep trying to get to get a pre-approval letter from a private money source stating that YOU have been prequalified to borrow X amount of funds.

I think it will really help you in the future to have established a business relationship with a hard money lender and not just rely on this guy.

Best wishes

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Re: Am I on drugs, or will this work? - Posted by Space Available

Posted by Space Available on July 08, 2002 at 16:20:42:

If he puts money into an escrow account (i.e. earnest money deposit) and you have a contract from him for the purchase of the home from you this might fly. Run it by the bank loan officer first.

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Re: Am I on drugs, or will this work? - Posted by Adam

Posted by Adam on July 08, 2002 at 20:09:55:

Thanks Gerald,
I am really seeing now that I have been beating around the bush on this matter. I have tried to make sure all of my bases are covered so much that I am forgetting to play ball.
I will take your advice.
Thank you,
Adam