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June 26, 2022, 11:58:03 pm
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June 26, 2022, 11:58:03 pm
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Author Topic: "......... offers must have proof of funds letter" How do I work with this?  (Read 6423 times)

Offline cegerken

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When looking through deals I find wording such as this

"If financing purchase - buyer may choose lender of their choice, but must also have prequalification from Countrywide Home Loans. If financed thru Countrywide buyer will receive free appraisal & credit report. Cash offers must have proof of funds letter"   :rolleyes

With that in mind is it worth pursuing? In plain English.... How do I, as a wholesaler, contract on a deal like this?

The asking price is 31,900...... zillow has it valued at 112,00 and REUSA has a value of 149,324. I do know it needs a furnace..... but other then that I can't say yet about repairs..

Looking forward to others solution for this stumbling block. Are there investors out there that will give a "proof of funds" on a property unseen?

Or should I not invest time, effort and energy into deals worded in this way?



Offline Mr Investor

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Where did you find this deal?

Offline Brian(MD)

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Getting a POF letter is cake. Don't ever use the zillow Zestimate as an ARV, always look for legit comps to determine your ARV. There are plenty of free sites available that give you legit comps. Do you own DD on the area and if the #'s look good then go look at the property to get a repair estimate then make an offer based on your formula.

"How do I, as a wholesaler, contract on a deal like this?" If your gonna WS the deal, submit your POF letter to the agent, a blank check as well($1000 deposit is usually required) and if your offer is accepted your will sign a contract and submit you $1000 deposit. Then after the contract is signed you let the entire world know about your deal. You may have to do a double close is the contract has a no assignment clause in it. Good Luck!

LookingToNetwork

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I use Zillow all the time is their a better website to get legit comps.....?

Offline cegerken

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You say a POF letter is a piece of cake>  :help I don't have the funds for it so I would need to find an investor to provide it.

And just getting started at this I don't have a list to turn to....... though I have made some contacts through here for deals..... once I put them together.

I would do any contract with and/or assign. Keeping in mind that when I was talking to an attorney, he did mention that that underwriters may write it up for double closing with 2 sets of fees being due. Anyone know more on this that can give more insight?

Here is another that is frequent........

"HUD home, Sold 'AS IS' by Electronic Bid only. For Property, conditions, Forms, Discl, Avail & Owner Occupant Incentives see Website in Agent Remarks*.

Those don't ask for POF so I assume it is just putting out a bid and hoping it gets accepted.......

I, too, would be interested in other sites for comps...... without being a R.E.

Always interested in learning! Thank-you for sharing.........


Offline motiv8td

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google "double close funds"
there are a lot of companies that will give you a POF letters.

Normally they charge 1-4% to use their money to fund the "transaction"

They'll give you the POF letter no sweat but to actually fund a double close you'll have to show them the A-B contract and then the B-C contracts. I've never actually used them to fund the deal b/c the way that I do it is a single close and I show up on the sellers side of the HUD1 as a personal lien. But I've gotten the letters from them before to submit it.

Offline Brian(MD)

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I use Zillow all the time is their a better website to get legit comps.....?

I use zillow all the time to get comps, just don't use there Zestimate for the ARV because that is not always accurate.

Offline THR2008

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    • www.tampahomerescue.com
I usually do a prequal letter from the mtg co I use to work for and that serves the same purpose. I send in an offer and then get a certified check when they accept.
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Offline 50% homes

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What I did when I first started was open a couple credit lines and then transfer a decent amount of money to my bank account when I was ready to start looking for a home.  I saved that copy of the statement and used it ever since. Just white out the dates and other sensitive information. They won't questions. All they want is assurance that you can close as a cash buyer.

Or buy your homes under an LLC and get a bank statement or savings statement from a buddy or family member with a decent amount of money in their account. Just use that statement. I buy my homes under an LLC, and the sellers(REO) never know my name. I sign for my LLC, but my signature isn't even legible. 

Offline NJbird_dog

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I've never actually used them to fund the deal b/c the way that I do it is a single close and I show up on the sellers side of the HUD1 as a personal lien. But I've gotten the letters from them before to submit it.

You get away with doing this? What state are you in.. how many times have you successfully closed by doing this?

I saw on the news not too long ago.. an investor in NY that was accused of "equity-stripping". Basically stopping foreclosure but in the process taking the equity out as a mechanical lien on the HUD-1.

 




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