I have 3 people that are willing to be my private lenders on the next deal. They all willing to invest $40K a piece. I found a 4plex and would like to make an all-cash offer on it. The seller is asking for proof of funds. What should I tell them? Can I get some kind of document from my private lenders showing their intent to invest?
In my experience, if you’re pulling a deal together using several people, it’s best to be up front with the seller. Let the seller know what you’re looking to do and ask what they’d like to see. They may just ask for a letter from each of investors, or they may ask to see that those investors have the funds (which would entail showing a copy of bank statement or HELOC - or whatever source the investors are using to send you the funds).
Ask what the seller wants…then go from there. No point in spending a lot of time putting together information if you don’t end up needing it.
Great job in raising the funds!! ROCK ON!!!
Thank you for a good advice!
The lender for my latest mortgage wanted to see my past 3 years Tax returns, and the most recent bank statement of the account I was using for the down payment.