Hi everyone i have a quick question. If im wholesaling a deal and the seller wants to see proof of funds what should i do? Because i dont have no funds of my own to show the seller..
I have never had a homeowner request any proof of funds but I have had lenders request in the case of dealing with REO's.
The way around dealing with lenders that has been successful for me is to provide them with a posted dated check for the full amount made payable to a title company of my choice with a purchase contract clause stating that said check for purchase of subject property located at 1234 BTO Street will not be cashed till all terms of the contract have been meet.
Such as subject to partners approval.
Subject to partners inspection
In case this does not work I do have proof of funds from my bank.
And something I"ve seen done, with some success, is this:
Buyer gets letter from private lender to effect that the pvt lender is agreeing to fund the purchase, to extent of $_____, subject to purchase price of $_____ and subject to lender's inspection and approval of property.
Probably not going to work with REO depts, but with pvt sellers it wil occasionally do the job.
I give them the name of my mortgage broker. He will tell them that although I don't have the money lined up before I put the deal under contract I do close with investors (some of whom I found through him). Then he will tell them that he's closed x number of deals with me this year. After that its generally not a problem.
I have never had a homeowner request any proof of funds but I have had lenders request in the case of dealing with REO's.
The way around dealing with lenders that has been successful for me is to provide them with a posted dated check for the full amount made payable to a title company of my choice with a purchase contract clause stating that said check for purchase of subject property located at 1234 BTO Street will not be cashed till all terms of the contract have been meet.
Such as subject to partners approval.
Subject to partners inspection
In case this does not work I do have proof of funds from my bank.
Hope this helps.
[addsig]
Wow i never thought of that thanks for help...
And something I"ve seen done, with some success, is this:
Buyer gets letter from private lender to effect that the pvt lender is agreeing to fund the purchase, to extent of $_____, subject to purchase price of $_____ and subject to lender's inspection and approval of property.
Probably not going to work with REO depts, but with pvt sellers it wil occasionally do the job.
If the seller wants proof of funds, can you write in the contract for the seller to give you a few days to provide proof of funds?
I give them the name of my mortgage broker. He will tell them that although I don't have the money lined up before I put the deal under contract I do close with investors (some of whom I found through him). Then he will tell them that he's closed x number of deals with me this year. After that its generally not a problem.
Thanks everyone for the help ,,