OfflineI have been currently tryn to get a POF letter. Before everyone tells me about Coastal and other sites that do this, it costs a bunch of money at closing and only works with back to back closings. I have a relative willing to back me on some deals. I was wondering how can i get a proof of funds with using my relative? Can we just draw up a contract stating that he/she is lending me the money and use that as POF? Or do we got to draw up a contract stating how much is being borrowed and how it is to be paid back then get a check from my relative and deposit it in the bank? I would rather just use our loan agreement because i wont have to use the money when assigning the contract to another buyer. Can the other buyer give me a proof of funds letter to use since they will be the ones closing the deal? Sorry for all the questions but any info would be priceless. Just tryn to be creative in finding different ways of getting POF without using third party companies that are very expensive!
Creative Proof Of Funds
Posted on: Sun, 01/31/2010 - 21:29
I read a post some time ago by nmbiggar called "roadmap to raise 100% financing for a rehab/refi". Check this out and see if it maybe what your looking for. Also I think that is where I found a draft he uses when he's borrowing funds from a friend or family. I hope this helps.
lbrown
Wow you hit the nail on the head! Gave me great ideas! Thanks a million!
Andrew
No problem, glad I could help. I read a lot of the older post which I've found are full of good information. It's a little time consuming but as you can see it's worth it. Take care and happy investing.
lbrown
Just a note if you are only going to be assigning the contract over to an end buyer insert a clause in the purchase contract that states that POF isn't due untill partner(s) have completed inspection and due diligence and agree to purchase. Once your buyer agrees to purchase you can use his POF or ernest money. This also gives you an "out" of the contract if the deal is getting shaky and you decide not to proceed.
Good Luck and keep the faith,
Dana
Sincerely,
Dana
"Now to Him who is able to do exceedingly abundantly above all that we ask or think, according to the power that works in us." Ephesians 3:20 (NKJV).
Coastal will give you a POF, you get the offer accepted, your end buyer falls out, you assign the contract. You do have more than 1 buyer?