REO FLIP: Bank says I need a bank statement to submit offer!!!

Bird Dogs, Wholesaling
1

So i have a pretty good deal, im pretty sure of, which is a short sale in beautiful San Francisco for 590k and could be rehabbed for at least 900k and were looking at 100k in repairs. The bank, or the realtor, i really dont know at this point, wont accept a proof of funds letter from the transactional funding source im trying to use. They want to see a statement of some sort showing that i have the funds available to close. I dont have a statement or know anyone who does but do any one of you have any suggestions on how to get around this one??? This would be my first deal i lock under contract so i really want to be able to come through on my part and make this deal happen. Credibility is everything and i can’t afford to loose not one bit of it.

Thanks for your responses :beer

2

Its called a Verification of Deposit (VOD) and some transactional funders will supply one for you. Check to see if the funder you’re currently working with will get you one. If not, ask some other investors who they use, because I’ve seen them around, but I can’t recommend one specifically for San Francisco…

3

Well the funder im working with will not supply me with one. I have found companies who specifcally offer that service but they charge enormous upfront fees :banghead Im running out of options and time to secure a really good deal. can anyone help please!!! :help

4

Try this guy…he’s been around a long time and he is very reputable, as well as an investor himself. His investing website is www.shortsalewealth.com. His transactional funding site is http://shortsalewealthfunding.com/.

Good luck!

5

They are doing that to you because your letter says Proof of Funds and it is confusing them. Realtors understand proof of funds to be a bank statement.

Tell them you are using hard money and it needs to be submitted as a hard money contract.

6

Is there any special way to put the fact you are using hard money into the contract? I always thought it was listed just as cash.

7

Just tell the agent you are using hard money, so submit it as a hard money contract.

8

Hi I don’t get it. Suppose I have cash what would be the scenario then. Anyway thanks for the VOD service website. Thanks.

9

Just say exactly what I told you to say. If you are using cash then you submit proof of funds via a bank statement.

If you are using trans. funding then you tell the agent to submit the offer as a hard money contract. I know I have done this too many times to count

You have to tell them that or otherwise when they see Proof of Funds on your letter they will ask you for a bank statement.

If they see Pre-Approval then they tend to ask you what the terms of your loan are and what the length of the loan is and all of that because they think you have conventional financing.

Transactional funding is most similar to hard money in the eye of a bank, so you have to say it is hard money, which in that case the agents just submit it as a hard money contract. The banks know what that is and the agents do too. They don’t ask for anything else when you tell them that.