Re: Making sure a prospect can perform is not dumb. - Posted by Jim IL
Posted by Jim IL on April 08, 1999 at 13:04:34:
There are several reasons I have for not wanting to disclose my financial abilties and resources. (and I’ll admit, personally they are lacking.)
The main reason though is that I intend on “flipping” these homes, and by disclosing that to a “not so open minded agent”, I may get my offers refused because the agent lets that be known.
Imagine, you are the seller and you hear, "This buyer has the best offer for us yet, but he also has a buyer who will pay him MORE for it. I think we can hold out and get that higher price."
That sort of kills my deal doesn’t it?
I do have some agents working with me who I am comfortable with, and know what I am up to. They have agreed to proceed on my behalf, and even help me when the seller makes noises about “Show me the money”.
Yesterday, we had an offer come back with the response of, “Show us proof of funds”.
My agent just called to let me know, and she also told me that she knew I’d say, “No”, and she intended to tell the seller that, and further explain that she’d worked with me before, and I was able to close on previuos deals, hence the short close date in our offer.
Well, today, the seller has informed us that is acceptable and they are passing the offer “up the chain” in the bank to get it approved.
I understand the agents perspective, and you are right in most cases, but for me, “proof of funds” is irrelevant. I have a buyers list, and I know they are able to close, that is why they are on my list.
(I even contemplated getting one of them to write a letter, but then they may realize they can get the homes for less, by going around me)
If an agent or seller requires “Proof of funding” and will not budge, we simply move on to the next deal.
It is no big deal, but I do wish there was a way around it, so we could successfully close those deals, instead of walking away from potential profits.
And obviously, after doing a few more, we will have bank statements to show our ability and cash on hand.
But, for now, we must proceed as we have.
It is amazing though, after you convice an agent to work with you, the BEST way to convince them you are a serious buyer, is to close a deal with them. They sure seem a lot more cooperative after that.
Thanks for your input, and best of luck in your investing,