Posted by Brian W(IN) on May 09, 1999 at 20:11:13:
I would like to add a question to this response. What if you are flipping the property to another investor. Who would provide the Proof Of Fund letter, you or the other investor?
Proof of Funds? - Posted by Russ, IL
Posted by Russ, IL on May 09, 1999 at 18:20:16:
I’m looking at bank owned, distressed properties. I am making all cash offers. A few of the listings say “Proof of funds required with offer”. What are they looking for for proof of funds usually? In other words, what would I give them for this proof? Thanks.
Russ
The answer - Posted by Arie O.
Posted by Arie O. on May 12, 1999 at 11:23:39:
I’ve read the thread to this point but will answer at the top level because it is all inclusive.
Proof of Funds is not a Realtor right with an offer. It is an insult to stop superflous offers.
I have never been asked for proof of funds because of my personal attitude to Realtors, they know I am for real. And because of the methodology I use to do offers.
Take control people. Don’t call the Realtor and say, “Ahhh, I’m a cash buyer what do you have?” Know what he has. Know why you are there.
First, Most lenders require their own contracts. So don’t let the Realtor fill out the contract. Send the Realtor a faxed letter of intent stating what your basic terms are:
$100,000 as-is
Seller provide pest report but not clearance
Buyer to have 5 days to inspect property
Proof of Funds provided upon Sellers acceptance
Tell the Realtor you don’t share financial data and when he says your price is right you will show the money.
Also don’t worry about the contract name. A contract is assignable unless stated otherwise [the government contracts state otherwise, but have always been amienable to writing a new contract when I buy one from a finder].
My wife and I both work this biz. We take contracts in just one name and then change title to an LLC upon purchase with no problem ever. The single name makes all the signing so much easier.
Ramble on Arie.
Arie O.
Re: Proof of Funds? - Posted by Mike Oldfield
Posted by Mike Oldfield on May 09, 1999 at 19:26:42:
They want to know if you have the funds required to close the deal. I believe a current bank statement will do for proof. Also a letter indicating a cash gift to you is acceptable up to certian limits.
Friendly suggestion - Ask the bank what they will accept. They dont bite. Only they know the most up to date complete answer. Then you can come up with a creative solution to there rules.
Go right to the horses mouth. Its done every day
Good Luck
Mike Oldfield