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Author Topic: SUBMITTING AN OFFER  (Read 2322 times)

Offline capgiant

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SUBMITTING AN OFFER
« on: July 30, 2008, 01:36:13 pm »
OKAY PLEASE CLARIFY SOMEONE:

I see and hear people saying everyday that they are "putting offers" in on properties. Yet, my experience so far, with about 20 different offers I have attempted, is that the bank is requiring proof of funds....so how are all you wholesalers simply putting in offers and acquiring these contracts without having to show proof of funds? The banks won't even look twice at my offers if there is no proof of funds.

I have asked a number of people on this site and a number of people on other sites and even a couple people I know and have yet to receive a straight answer. No one can explain or even make sense with an answer to this question.

 :banghead

I have been at this game for some time now, with persistence, determination, putting in 16 hour days, I have a realtor on my team, I have investors lined up waiting, I have properties found, and frankly, I am getting a little pissed off now because I cannot seem to acquire ANY properties for my buyers because of this proof of funds thing, and everyone else seems to be doing it easy as pie....can someone please help me out?? I would be forever in your debt!!

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Offline scostell

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Re: SUBMITTING AN OFFER
« Reply #1 on: July 30, 2008, 01:56:25 pm »
Stupid question, but why can't you get some sort of "proof of funds" letter from a lender (hard money or private)?
-Scott Costello
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Offline capgiant

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Re: SUBMITTING AN OFFER
« Reply #2 on: July 30, 2008, 02:05:05 pm »
I am just wonding HOW others are doing it and WHAT they are using to do it.

I don't want to go through the process of qualifying with a lender because I am not the buyer. Plus, I wouldn't qualify anyway, the credit is shot. Even if it was good though, I wouldn't want to do that. I am not the buyer. My end buyer is the buyer.
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Offline tampasteph

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Re: SUBMITTING AN OFFER
« Reply #3 on: July 30, 2008, 02:26:20 pm »
If you can't provide proof of funds or a pre-qualification letter from a lender, then you can't offer on REOs. They want to see that you have the ability to close and aren't just wasting time.  There is really no way around this.  Those are the rules set by the banks, and if you want to play the REO game, you have to abide by them.

Steph

Offline j1dias

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Re: SUBMITTING AN OFFER
« Reply #4 on: July 31, 2008, 12:34:17 am »
It shouldn't be too hard to get a POF, just contact a hard money lender or look into doing a Back to Back closing through a company. One company that does it is http://coastal-funding.com

I came across the site a few days ago and it looks like a one of a kind service. They will give POF letters.

POF is one thing but there is also the Earnest Money Deposit, or will you just have your end buyers cover that?

Buying POF doesn't seem right... Isn't it fraud to get a POF only to show the bank that you have funds or access to it if you don't actually have it? Just asking...

Have a great evening!

Offline ericmedem

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Re: SUBMITTING AN OFFER
« Reply #5 on: July 31, 2008, 03:57:27 am »
I will start by saying that I am just giving you some other options that I have seen done in the past.  Don't take them as my recommendations, but they are options.  Realize that in most cases the worst thing that can happen if your POF doesn't meet there needs is that they reject your offer, which they seem to be doing anyway.

1. Get a bank statement from a friend or family member that has a sufficient amount of cash to cover the purchase. Then cross out their info on the statement.  When I had clients that needed a preapproval letter and I did not have one I would simply send in my bank statement and it worked a good deal of the time.  If your in a high priced market then this can be a problem, but it is an option.

2. Get over the fact that you don't want to meet with the any lenders because you are not the buyer.  You only goal is to make money as a wholesaler, do whatever you need to do to get a letter.  So do try hard money lenders in your area.

3. Befriend a mortgage person and explain your situation.  Ask for a prequalification letter which differs in from a preapproval letter.  A prequalification letter is often given without nearly as much checking into as a preapproval letter.

4. Ask your realtor if they know any mortgage people that would do them a favor and get you a letter.  In most cases the lender is not at any risk if they write the prequal correctly.  By correctly I mean something to the effect of "I have met with Mr.x and he can be approved for $100.00 so long as his credit and employment meet our banks needs. (I am not a mortgage person but I do remember getting some of these for my clients)

Please note, these are not my recommendations, but they are options.

Eric Medemar
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Offline jaybird

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Re: SUBMITTING AN OFFER
« Reply #6 on: August 08, 2008, 01:56:07 pm »
I have had success with POF letter by saying the following:

"I don't know if I will be closing in my name, company name, or partner's name.  This will work w/ Short sales but not REO's.
Hope this helps.

Offline fadi

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Re: SUBMITTING AN OFFER
« Reply #7 on: August 08, 2008, 02:10:45 pm »
Well, the simplest answer is to buy from sellers directly. Don't buy listed houses, buy unlisted houses from motivated sellers.

If you plan on buying through the MLS and REOs, then you need proof of funds, and ability to flip the contract since many lenders and realtors won't allow assignments.

How some do it? they have networked with people with money, they have hard money lenders, they have cash..etc. Basically they have overcome the obsticles and created the system that allows them to do it.
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