Posted by Chris on January 29, 2000 at 21:51:25:
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Verification of Funds??? - Posted by Kevin-Baltimore
Posted by Kevin-Baltimore on January 29, 2000 at 17:51:17:
I am beginning to buy REO, HUD and VA properties through some realtors to wholesale. My delimma is that all the realtors want me to verify that I have the funds to actually close on these deals. My objective is not to actually own these properties, but to quickly sell them to other investor.
How do I overcome this problem if I don’t have the funds to show in the bank? With the simultaneous closings that I plan to do, I won’t own the property but for a very short time. However, I can’t let the realtor know this. I need a solution please…
Thanks,
Kevin-Baltimore
Re: Verification of Funds??? - Posted by SCook85
Posted by SCook85 on January 29, 2000 at 21:29:52:
Kevin,
You can contact a mortgage broker and get a prequalification letter, it will suffice for making offers on REO’s. If you are making cash offers they want to see proof of funds.
It is not the realtor requiring the proof of funds it is the seller. I haven’t seen a bank owned property yet that does not require proof of funds or a prequal letter in Baltimore.
Steve
Re: Verification of Funds??? - Posted by Chris
Posted by Chris on January 29, 2000 at 20:06:13:
Who is the realtor to ask about proof of funds? What business is it of theirs what you do with it after it is under contract? He is there to present the offer. When you have given them a written offer for them to present have they refused to present it. If so,that is a violation and you can report them.
I seem to remember something brought up on this board about HUD foreclosures having to be purchased using their purchase contract which does not allow assigning.
Most folks also say that HUD and VA foreclosures are priced way too high to flip profitably. You may want to look at them closer too see if you can get them cheap enough.
-Chris
Re: Verification of Funds??? - Posted by SCook85
Posted by SCook85 on January 29, 2000 at 21:34:37:
Chris,
It is the seller of these properties that requires proof of funds or prequalification letter. It is written in the listing on 90% or better of the REO’s in this area. Without proof of funds your offer won’t even be considered.
The reason realtors want this information is because the sellers have already been approached my many investors who made all cash offers without having funds, because the intent was to flip. The sellers get burned often so this is how they protect themselves now.
Happy Investing!
Steve