Real Estate Agent That Wants more proof than POF letter

TIL SHE HEARS FROM WHO ???

your cash buyer ????? NEXT !!!

WALT

If it is your cash buyer? I never tell an agent I'm assigning my deals. I let them know I'm a cash buyer.

Let us know who your agent wants to hear from before submitting your offer?

My Journal- http://www.deangraziosi.com/real-estate-forums/investing-journals/144538...

We like to come out with a free POF accompanying our email to our agent requesting they write our offer. It includes all the terms we specify, not subject to the agent's power trip.

We rely on our agents to act under the law, ethics and reason. They have a fiduciary responsibility to us. Excellent ones know exactly where the boundaries are between all parties and don't step into our role.

Just find another six, and the one or two who call you back will dwindle to ...one I guess. Not only will they set-up email alerts based on our criteria promptly, and repeat words we use, treat us like we treat our clients, tell us when we need to increase our EMD or even double it, etc.

And they will write ten offers a day

Today we supplied bank account statements to our escrow and cc'd our agent. The documents were acceptable but where only the investor's personal name on one needed to be legally supported linking documents with just their company names. So when he stopped by to pick up the final counter, we sorted them correctly and he said it may become "helpful" should the need arise to ask us to provide further proof of the connections.

Fine with me! He negotiated the firm asking of $859,000 to $729,000 and the seller opened escrow before even getting the statements!

This guy is gold!

If we need to open aggressively, the agent kicks it back with something like:

"Seller's agent says they already have ten offers and yours is next to the lowest. With the activity on this property, the recommendation is to write EMD of 3% 3-day fund, 7-day investigate, 14-day COE. Please return your approval with your bank statement supporting ability to close."

Okayyy. I reply with the bank statement and instructions to add a $10,000-increment escalating clause with a cap of $60,000 above our original offer.

Five minutes later my inbox has a Docusign for me to autograph.

Aren't agents wonderful!

Otherwise, they won't ask us for a bank statement until our offer is accepted and escrow has directed it.

IBuyHousesPaul in San Diego, CA

I would tell you to get a new agent if he/she doesn't want to submit your offers with just your POF letter. She/he could be good and listen to you as you say but when it comes to submitting offers and she/he is giving you a problem because of your POF, find a new agent.

Thanks for the reply's everyone @IgwiloProperties and NATCHEZ MISSISSIPPI I get my POF letter from BestTransactionFunding and she calls them or emails them and wants someone to answer or email her back.

Fredc, I first wanted to indicate that I concur with the other comments about finding a different agent. While your agent probably thinks they are being efficient and doing a good job of getting solid offers, in our case that reasoning is flawed.
Having said that, and for the benefit of other readers as well, I'd like to expand the topic just a little. In some areas around the country, competitive bidding is taking place, and multiple bids are being evaluated by sellers for acceptance. Although the highest purchase price is often given strong consideration, other factors are also important and in some cases may be of greater importance than the purchase price. Here is a list of the components of strong offers that are evaluated by sellers and their agents:
1) All Cash Offer (vs. Loan Qualification requirement)
2) No Sale of Property contingency
3) As Is (vs. Seller repairs requirements)
4) Short Closing (30 days or less, less is better)
5) Short Inspection Period or No Inspection Period
6) Verification of Deposit (vs. Proof of Funds)
7) High Earnest Money Deposit
No additional Contingencies or Assignments
9) High Purchase Price
As investors, there simply are some components of strong offers that we will not likely meet because they are counterproductive to our purposes. I think it is important to point out that we DO NOT want to win a bid on a property that will become unprofitable, or will prevent us from continuing to make other offers.
I would like to focus on one thing that may be unfamiliar to many, the difference between a Proof of Funds and a Verification of Deposit. The first is a letter indicating that funds are available, which may or may not reference it as being a loan. The second is an actual Deposit log for a real person within the last 30 days. It shows the money in a real account.
The other difference is that Proof of Funds letters are a free service offered by some lenders, especially transactional funding lenders. They are anxious to build a relationship with investors and have an automated system to generate these letters on any property you choose. And in many cases the POF letter is perfectly adequate for your offer.
If you are having any difficulties with the POF, you may choose to use the Verification of Deposit (VOD) instead. There is a cost involved, one source will let you use a VOD for one time usage for about $400. That seems rather steep. We recently have located another source, www.linksourcemanagement.com/innercircle, that will allow you unlimited usage of VOD for as many offers as you would like to make for a 30 day period. Their regular price is $95/month. If you will enter the promo code: Dallin, they will offer you the discounted rate of $80/month. As we have a number of members of the program who are using the VOD approach with success, I wanted to post and make you aware of it. We always suggest you use the free approach unless it isn't working for you, and then we offer this alternative.
I hope that each of you will work to find the ways of presenting the strongest offers possible without compromising either your ability to make a profit for you and/or your cash buyers, or your ability to continue making additional offers. As always, we'll see you on the road to success.

Thank you coach Dallin this is very helpful it seems like all the RE agents I have spoken to want more than the POF letter so this other source will be helpful thank you.

Thank you Fredc, happy to be of assistance.
I always like to add a little more to the body of knowledge with each post, so here's another little idea worth consideration.
A little-used persuasive technique with offers is a letter that explains some aspect of the offer, and creates a little more human side to the person making the offer. It is harder for a person to say no to you if they consider you as a real person rather than a series of numbers.
The letter needs to sound professional, and it also needs to express appreciation for the consideration of your offer. It can identify a reason why you are particularly interested in the property, or if you are dealing directly with the seller, can express that you enjoyed meeting them and wish them well in their endeavors.
There is nothing that says that an offer cannot be accompanied by a letter, and it could tip the balance in your favor. PLUS, isn't it just human courtesy to thank someone for considering an offer that you present?
As I learned from my first mentor, Real Estate is about people and problems much more than it is about properties.