How do I explain to a friend how I will use his bank statement as POF?

I know I can use his bank statement as proof of funds but he’s going to ask me why, what , where, how, when, Huh?
I’m trying to bid on an REO and I just need his statement to get it under contract then i will close with a HM.
So if someone can tell me the exact process so I can explain it to him cuz he going to ask is that legal?


Why don’t you just tell him the truth…that you need the statement to make an offer?

Or, if you have a hard money lender lined up, ask them for a letter to submit w your offer.


Steph thanks for the response.

I am going to tell him that but he going to want to know the inner workings of it as to why would the bank would accept it if its not my money.
He would ask why is that legal and why would the bank allow that.
Get my drift?

You should emphasize that it is your name that will be on the contract and not his. You will be the one responsible for closing the deal…so there is no risk to him.

Do you already have a Hard money lender in mind that you want to use?

hey investorman,

I guess I don’t how to ask the right questions.
I’m trying to figure out why the banks would let me use someones elses bank statement as proof of funds when purchasing a house if its not him purchasing it.
Is it because it is going to be a NOO? And it doesn’t matter whos name is on the proof of funds or do they view it as some third party lender and they dont care?
To your other question I don’t have a hard money lender in place because most require you to have 20k to lend on (more or less).
So…I’m tyring to recruit and private lender that will want to make a return on his investment.
Do you have some kind of power point presentation that I could use as a template to recruit investors?


Well if the banks accept it who cares why they accept it. I’m assuming they would just view it as a third party lender type thing.

I think they are most concerned about getting their deposit , and they will want oftentimes 1000-2000 as a deposit.

You said that “most require you to have 20k to lend on (more or less).”

What is the purchase price of the property? They are probably going to want you to put some money up , but there should be some that require you to have less than 20k in cash.

I haven’t tried recruiting private lenders/investors yet

well listing price of props are around 80-150
and some I want to purchase at 50.
Ive talked to TNG and they told me I need lots of money …around 20k.
Others 20%.

Go to

They will provide you with a pre-approval letter.

They only provide one day funding, though, so if you’re planning on closing on the property and holding it for any length of time, they will not fund the deal.


I’m used them to offer on a property already but was still trying to scramble on how to finance the deal if it was accepted.
The only thing I think of doing is wholesaling it if I came up short on the financing.

Just to reiterate what tampasteph said-

You don’t wanna use 1 day funding if you’re doing anything other than a double-closing, meaning you already have the buyer for your property lined up and ready to close.

why not just get a POF letter from the hard money lender? Or find a POF letter online? You can go to and get one from Larry Goins for free. There are more than enough people online who are starting to offer Free POF letters. You don’t real have to ask your friend. I believe there are also mortgage brokers who offer flash funding where they can set you up an account with money in it just for show to get you in the door. I’m not totally certain about that one but I have a strong feeling I’m right from what I’ve studied.


I know coastal does flash funding for back to back closings.
I only used them as POF to get my offer in… then I had planned on closing with a private/hardmoney lender if I found one. But I had a difficult time trying to convince an HML to even speak to me with my deal being offered at 19k. They would say nah we don’t finance that kind of prop.

go to your reia club or research other avenues to find a private lender who will just loan you 60 percent LTV of the property. Or maybe talk to other HML. I have a list of hundreds of them I got from Tim Mai.

Still working on a private lender.
Could I have the list of HML that you got from Tim Mai?
Have you recruited any private lenders?