Pre Approval Letter??

A pre approval letter is from a lender that says you are approved, however allow me to say to you that a pre approval letter is nothing more than another piece of garbage.

It in no way says you are approved!!! there is no guarantee that a lender will say yes to your deal and the easy way out for the lender is to blame the economy. They can simply say after giving you that pre approval lender that they are not lending at this time.

A Proof of funds letter that comes from a legitimate funding source says that the funds will be there, it's more of a guarantee.

The Pre approval letter is submitted with the offer. Technically the realtor is correct. You have to submit it to them before they prepare the docs to make the offer.

This pre approval letter thing is more prevalent with HUD deals. I am a fan of transactional funding and I am involved with this area of real estate deal funding.

Guys:
First this is not shameless self promotion, I promise. I have been involved with transactional funding as well as hard money funding for awhile.

Let me give you a primer on how this works. Of course this is not all involved but enough to decide if it is for you or not.

Transactional funding is not a loan!!! There is no credit check, there is no entry to your credit report such as an inquiry.

You must have a A-B contract established. This is the contract between you and the seller. The A-B transaction must be a stand alone transaction. You must also have what is called the B-C contract established as well. This is the contract between you and the end buyer.

The end buyer must be a qualified buyer. This means that they must have mortgage funds in place or available cash to purchase and close. This must be able to be proven.

The transactional funder will provide not only the amount of funds to purchase but will also provide the closing costs as well. This is the magic behind this type of deal funding. You really have true no money down funding and purchase.

All transactional funders will provide a proof of funds letter, to submit with your offer. This gives you more credibility than those investors who can onlt provide a pre approval letter. It moves you to the top of the ladder and puts you on a par level with those investors who can prove they have the funds available to purchase and close.

Your deal must close as a double closing, through the same title company.

****WARNING**** There are alot of people doing transactional funding!!! Most are not transactional funders but educators, who will attempt te sell you a course in order to work with them. If you look at their websites, they almost all look alike.

There is a company in existence who for $500.00 will create a website for you and when deals that come from your website close, you get 10% or a max of $500.00 commission. This is not transactional funding, it is being a broker.

The company I work with will fund residential, commercial, residential and commercial short sales, for sale by owner transactions, REO's, Luxury deals, note deals and more. They can fund in 24 hours if absolutely necessary. They also do extended transactional funding for 30, 60 and 90 days.

We can fund deals from $25,000.00 to $75 Million Dollars and we are really the best at what we do.

I hope this helps.

Go to www.coastal-funding.com you can get a free approval letter through them,
just fill in the information and then print the form out.

whurndon
H&H PROPERTY SOLUTIONS LLC

Hey hows it going

I am not sure were you are money wise or if you even have an end buyer. I think i asked this question a few weeks back too but my problem with many of these POF web sites is they go off an ABC system were there is an end buyer.. This just didnt work for me and the house i was buying was a promising 120,000 profit at this current market.

I ended up doing though was having my mom and her husband write me a letter stating they would give me the money if approved. They used their house as the backing funding and they did have the money in there as in equity. It worked out and the bank was ok with it. Also i do have a thing going on with the bank were i get 30 days to pay them, its more of a repair time frame, so my idea was get my family to sponser me a fake letter, fix the place in a few weeks and flip it before the bank even wants their money. So far im still waiting on the ok to fix the place, but the plan seems to be working so far..

Good luck to ya !

David

Great information fellas! I sent over a POF letter from coastal funding to my realtor to be delivered with the offer after making the initial post. However, I've yet to find a buyer and have them under contract. My strategy is to find the deals, make offers on property, regardless if its shortsale, REO, FSBOs, etc and then find the buyer(s). If I can only use transactional funding if a contract is in place for an REO or whatever then how do I get around that when a POF is required? That defeats the purpose of making multiple offers to get only a few accepted. What am I missing here if that's the case?

I have not ever been asked for a POF with my offer, but again it might depend on the bank. It might also be the agent you are working with. The only money problem i have ever had when doin offers is some agents want me to put down 1000 for escrow, but i worked it so i have 15 days from the offer being accepted that i pay it, hense find a buyer and pay nothing

Again, ask your agent the reasoning for it, it never hurts to ask. It could be his company's way of working or it could be the banks policy, if it is the bank or agent you might want to keep poking around for someone else or avoid that bank till you get your money moving faster

Hope that helps some
David

Guys:
Trust me when I talk about this subject. There is a problem with using sites like Coastal-Funding. The problem is that the letter is generated off very basic information on the deal, before those companies actually look at documents, etc.

Once a realtor calls or a bank or even a seller calls those companies to verify the pof letter, it is very possible that they will be told that the POF letter was generated off their website and until they see docs and so forth on the deal, that it is not guanteed.

The reason I like the company I am affiliated with is because they do not just issue a POF letter until they see the docs and see that it is a real deal.

A company that says you can use their funds for your deal is not the same as saying our funds will be delivered to escrow on the following date.

As far as a pre approval letter, you may need to go to a lender and go through the process of getting approved for a loan.

Realestatedayfunding.com is owned by Larry Goins, who is the author of a great book titled, Real Estate Day Trading. This is a wonderful read on doing your real estate investing business as a business.

This is how I discovered transactional funding. I just decided to really get involved.

Yes you are right, there are people that want proof of this and proof of that.
I know for a fact that if your buying HUD homes or REO's, most banks and/or their agents will require a POF.

If a realtor says they want a Pre Approval letter, they are a retail realtor, meaning that they sell homes to those end buyers who desire to live in a property as a personal residence. They generally do not deal with investors.

I will also PM you in the morning on what we offer. Thank you for the opportunity to gain your business.

Like an IDIOT!! I find a realtor who is open to working with a new investor and I send her a POF from a company who doesn't do business anymore. Now she's gonna think I'm an IDIOT! I can't get approval from a bank right now that's why I'm trying to dind other sources to show I have the funds necessary to purchase property.

Erik-Wait until you see what we have to offer you before you resort to that. We are the real deal. You won't be able to just enter info on a deal on a website and print out a POF letter. The company I work with will issue a POF letter, after they talk with a person.

JSBlanto-Send me a PM and allow me to show you what we are doing and see for yourself. Be honest with the realtor, it's the best way to gain their trust. Just tell them that the funder you were going to do business with is no longer accepting deals and you needed to look for another funder.

I need a Extended Transactional funding done as soon as possiable.

I read your message to jsblanto about transactional funding. I would like to know more about your program.

Can you send me the info. You can either send it through this forum or you can email me at eugene@suncoastproperty.net.

jimmy

what company are you speaking of??? I have to submit a POF letter tomorrow for my first OFFER!!!

I would like some info. in regards to the transactional funding. I have a couple of properties I am interested in, but the real estate agent wants me to provide them a pof letter. please help...

Steve Scotch

Yes if you submit an offer for a REO property, 9 out of 10 they will ask for proof of funds or pre approval letter. I normally go to this site www.coastal-funding.com, click on Proof Of Funds, input your info, and you will get a free proof of funds. I used this in my initial offers and normally works. Try it out and enjoy it!

Do they also fund the deal??? Does the deal have to make sense to them or it is based on whether or not you have a buyer lined up????