Is there such a thing as a legal proof of funds letter from someone to tie-up a property? The Realtors require it and my own funds limit my doing it. My only intention is to flip it to a rehabber and never use the funds.
Sure it happens all the time. Haven’t you read any more on this forum?
It only takes around 500-1000 bucks to tie a property up with a contract. As far as POF goto ivfinancialsolutions.com or coastal-funding.com and possibly a rich friend or relative. Herbster
You don’t have to limit yourself to real estate agents you know. You can always track down ugly vacant homes and deal with private sellers. I’ve tied up many of properties with ten bucks. The deals are usually better and profits are usually bigger and there’s less people involved.
Riverview-
POF is used in also all of the RE transactions that involves flipping or doing a same day closing. (That is unless if you are dealing with a very distressed seller- banks or bank owned properties will not “tie up” a property for 10 dollars- only a personally distressed seller.
Though going down the POF route, based on my experience this is the only and best way to go about flipping the deal or conducting a same-day-closing.
We have personally structured several deals where out friends did not have enough capital to show a bank to bank proof of funds, that we put a block on our funds for a small fee for our clients and friends. This allowed the bank to take them seriously and conduct closing. At closing we used the our title company in which we structured a closing with the bank in the morning and in the afternoon another closing with the end-buyer. The client ended up risking only the POF fee, though reaped in the benefits of the margin he marked up ontop of the bank purchase.
The POF will also by a 30-45 day window in which one can aggressively market the property to an end-buyer, assuming you have not located a buyer initially.