I am currently in the midst of my very first deal: (a Wholesale Deal). I have found 2 distressed properties that are both excellent deals with good value and currently in process of putting under contract with the Banks. I had been countering back and forth with the Listing Broker about property for 1 1/2 weeks then finally came to a mutual agreement with terms. Today, at the last minute, right before the Bank signing my OFFER on the P/S Agreement, I was notified that I will need to provide a Proof of Funds Letter. I am a new Real Estate Investor and DO NOT have the funds currently in my bank account, as I have somewhat depleted my savings account in my EDUCATION to venture into this business. I have agreed to give the Realtor $1000 Earnest Money Depost, but was suddenly asked for the Proof of Funds Letter at the last minute of the contract sign-off. I don’t know what to do. I do not want to be deceptive at all with my deals. I believe in operating in integrity with all my endeavors. Is there a way or STRATEGY around this issue. I have 1-2 days to provide this Proof of Funds Letter to the Bank to officially have it UNDER CONTRACT. Please send some sound advice. I really do not want to lose both of these EXCELLENT deals when I know I can FLIP them quickly. What should I do now? Please HELP.
try to find a hard money loan or a money partner
In your offer, did you state “all cash at closing” or did you opt for financing? If you offered all cash at closing, it is customary to a provide proof of funds letter, and if financing you should provide a pre-qualification letter. Depending on the closing date in the contract, you may have time to obtain necessary financing…There are lenders out there who offer some attractive financing on investment properties…