Free Proof of Funds Letters
As you invest in real estate, one of the many things you will come across is proof of funds. This is just one of those pieces you need especially when you are doing any sort of quick flip where a bank is involved. The banks whole purpose in requiring proof of funds is to make sure you, as the investor, actually have the money to close your side of the transaction. They just want to make sure you are a legitimate player.
Can you blame them? What would you do if you were selling a property and you had two offers come in – one that would pay all cash, close on the date of your choice and backed it up with a bank statement, or one that needed to get conventional financing with no proof of funds letter? It’s obvious which offer you’d accept even if it was a lower offer.
In a nutshell, proof of funds are designed to give the banks confidence that you do in fact have the money to perform on your end of the deal. In fact, in some cases, proof of funds letters are not good enough anymore. Sometimes you will be asked for a VOD or verification of deposit which is an actual bank statement showing you have the money. Don’t worry, we can provide those too if they are needed. Most of the time, a simple proof of funds letter will suffice.
The proof of funds that we offer works together with our transactional funding. So the exit strategy must be a quick flip to an end buyer. We are not a hard money lender, so if the exit strategy is fix and hold or fix and flip, you’ll need to get funding from a long term lender. This could be either through a hard money lender or private lender. You could also try to partner with someone on this. If the numbers look good, you shouldn’t have a problem with finding a partner. You could easily go to your local investment club in your area and find someone there. If you don’t have a local investment club, it might be about time to start one yourself 😉
There are a ton of advantages being able to get proof of funds for your deals. I would say the biggest advantage is you now become a player. Without proof of funds, it’s almost impossible to do any kind of wholesale transaction like REO’s and short sales. On occasion it may slide, but that would be the exception and not the rule.
With proof of funds, it also gives you confidence. You know that you always have funds backing you up on your quick flips. It can be used on REO’s, Bulk REO’s, Short Sales, Probate and Wholesale deals – commercial or residential doesn’t matter. When obtaining proof of funds, we won’t ask you to verify income or run a credit check. Our biggest concern is the end buyer. Cash buyers are ALWAYS the best. There is a little more red tape when it comes to buyers who need to qualify for a loan, which is why they need to know exactly how this works.
How Do I Get Proof of Funds?
I get this question almost everyday – Do you guys offer PROOF OF FUNDS for deals?
The answer is YES!! We have been offering proof of funds letters for years.
In order to get a proof of funds letter, all you need to do is read this page. It will explain exactly how you can request unlimited proof of funds all backed by us. All proof of funds requests will be reviewed and then sent back usually within 24 – 48 hours. At any time we may call you to verify any of the information. Unfortunately we do not offer blanket proof of funds letters. They all have to be property specific. Even in the case of bulk REO’s, you’ll need to give us the property addresses.
Let me explain how our proof of funds work. All our proof of funds letters are backed by us. What that means is that if you have a legitimate deal that meets our criteria, we have the funds to help you close your deal. And since we don’t charge any points, you might want to use us, because you’ll get to keep more of your profits.
If you’re not using our funds to close your deal and just want a proof of funds letter, just go make up one. In essence, if you’re not planning on using money from a private source and just need it to fulfill a requirement, that’s all you’re doing anyway is making it up. It’s better to get it from the individual who is giving you the money.
So YES, we provide proof of funds letters to those who have a legitimate deal and who plan to use our funds to close.
So don’t ask for a blanket proof of funds letter. We don’t offer those.
As long as your deal fit’s our criteria, you can use our proof of funds letters all day long. So what is the criteria for using our funds?
- Residential or Commercial, we don’t care as long as the transaction is less than $1M.
- Your end buyer MUST be a CASH BUYER. Sorry, end buyer can’t be someone who is getting a loan. It’s too complicated anymore and we’ve decided it’s not in our wheelhouse. We want to see money in escrow before we fund our side of the transaction so that way we can eliminate almost all the risk.
- No rehabs. This is not a long term loan. This is a 1 day closing. We are in the house flipping business. We want to make it possible so you can turn this house quickly to someone else who will rehab it. If you’re plan is to rehab, you’ll want to find a hard money lender or private lender for those. And when you find one, they will give you a proof of funds letter.
- The property does need to be in the U.S.
- We don’t charge points either. How is this possible? Instead of points, we charge a membership fee. Why? This way we can train you to become more effective and because it incentivizes you to do more deals. With no points, you get to keep more profits.
Now go out there and make those offers.
Let me know how it’s going.