For those who have been asking about Proof of Funds or Escrow Deposits, please let me know how i can help.
I have done it all and could answer any of your questions.
Thank you.
I’m interested in purchasing REO’s but the banks want proof of funds with the offer. How do we go about doing this? I want to use hard $$ but they all seem to want the property under contract.
How much cash are you looking to spend on REO’s?
My company owns few tapes and able to access other ones nationwide.
Please advise.
TJ
We’re looking at $200K-$250K.
What is a tape?
Tape = List of REO’s (Addresses, Values…etc.)
I’ve just got two s/s under contract. I don’t have funding in place yet. I wanted the deals first and would secure funding after, but I do want to accompany POF letter, or would a letter of commitment from Mort. broker work. I have a complete package being put together to send out. Complete with my own BPO,RE listing, repairs needed, comps, pictures ect. shows are full intent to follow through with the purchase.
I wasnt sure of how to fund the deals. They will be below 65% arv. HML shouldnt be problem I hope. Thoughts?
I’m a hard money lender too and have been funding REO purchase transactions.
Typically we ask the buyers to bring in a minimum of 25% (cash) of the purchase price. Not the appraised value.
I believe there are lenders out there who do funding based on appraised values, but i do NOT know of any that “walk the walk”…most of them just “talk the talk” They say they can do loans based on appraised values, but none perform.
This means, if you don’t have money to play with, you are not going to get in the game. This game is meant to be for real players who have lots of cash and can perform and not waste time.
In your case, it’s good to have a letter of POF so you can get the contract started. I believe all sellers want to see that you can show liquid assets somewhere.
Please let me know if you have any further questions on how to obtain POF letters.
I personally don’t recommend purchasing REO’s right now!!!
now I am curious… Why is that?
I personally don’t think the cycle is over with.
Look at the economy and the average income? Has that increased at all in the last couple of years?
Watch the market and the cost increase in living expenses. Have you seen things go down in prices or just the opposite?
I believe we are going to have at least 50% more foreclosure next year this time of the year.
Now, all those SFR owners (Typical home owner) who held this far may not hold any further since their income hasn’t increased and their savings are about to run out!
I own a foreclosure company that services CA, NV, NY, and NJ and our business has increased in the past two months. I believe the business is going to increase twice and even more in the next couple of months. All this supports my thoughts and opinion above.
Again, all of the information above is based on a personal opinion and have no guarantees. This is NOT a professional advice in any shape or form. You MUST seek a professional advice for further guarantees on any of your investment transactions .
Thank you.
TJ
Hello are you an investor or you looking for REO to wholesale. I maybe able to help.