POF letter

I’d like to first start by saying that this forum is a wealth of information. The investors on this site seem to be very knowledgeable and helpful…us newbies are very appreciative!

I’m a newbie to investing and want to start out by wholesaling properties. With my first offer that I was going to write through my RE agent, the seller requested a POF (proof of funds) letter. I don’t have that and don’t have an IRA account that I can show proof of funds for. I feel like I’m stuck now.

Any suggestions?

First try to avoid realtors if you can they will just mess up the situation in lots of cases. Talk to the seller about how you intend to move the deal and how investers have cash flow from private sources that is how you and they can get the seller a closing so quickly.

I agree with Rebel. Also, you want to deal with Motivated Sellers. If they are truly motivated, they probably won’t ask for a POF, they’re just happy that someone is going to solve their problem.

As far as a POF is concerned, get one from a hard money lender. It could come in handy at some point in time (for example, Short Sales).

My problem with obtaining a POF from a hard money lender has been the fact that I needed a 620 credit score or better. Should I just keep searching for an HML that doesn’t have this criteria?

I know an HML that does not require a credit score.

If you haven’t already, start attending the rei clubs in your area and networking with other investors. Ask them who they are using for hard money. You should be able to find someone locally that will provide you with a letter. Just keep asking until you find one- they are out there.

Also, like was previously mentioned, if you are dealing directly with sellers (motivated sellers), they are not going to ask you for POF- all they care about is getting rid of their home.

Good luck,

To get a proof of funds letter, try to befriend a mortgage broker and get a prequalification letter. Most realtors do not know the difference, typically a prequalification letter can be written without having to pull all of your info if the mortgage person is a friend. Preapproval requires full documentation in most cases. or borrow a family members bank statement and cross their names off of it.

My middle score is 626. I need a hard money lender that can do a stated income loan. No Doc. Searching for a lender that goes almost exclusively on the equity in a property. All my deals are below 60%LTV including repairs. do you know of a lender that can help me out?
Thanks in advance.

:cool HEY RGCHAMB i would like to have more information about this HML of yours thanks for the information

Yea, I agree… dont go through realtor. I have HML’s who dont check credit. email me… also do you have any other source to get the deals your looking at? If your seller is asking for a POF letter he is probably not desp. and that means you might be in wrong kind of deal anyway? In this market you need to be buying at 65% or less, is that where its at? i also have a list of props. at that or less.