Proof of Funds Letter

A "Low Ball Offer" backed up by a strong Attorney’s Proof of Funds Letter or Bank Account can beat a higher bidder who can only provide a “Pre-Approval” Letter from a free service provider posing as a legitimate POF's letter. So, make sure you know the difference, and what is required by the seller or bank - because they will know the difference, and FAST CASH IS KING!

Questions? Call: Yvonne Jones – Private Financial Club’s “Honey of Money” Proof of Funds Hotline for answers.

Hard Proof of Funds: Hard Proof of Funds is used when you need to show verification of funds in a bank or escrow account, in your company’s name, for a particular project, for a required dollar amount, and for a certain period of time.

Soft Proof of Funds: Attorney's Soft, Proof of Funds Letters are typically used for securing a contract and are more affordable then moving Hard Money into a bank or escrow account.

Some banks and sellers may require either one or both; and if you are not prepared to provide Proof of Funds quickly, you may run the risk of effecting your professional credibility in a negative way; which in turn, may cause them to overlook your offer for another bidder; so, it is imperative to be ready to provide a Proof of Funds.

Hi Jason: A legitimate Proof of Funds must be in the Client's name or Client's Company name.

It appears that your Private Lender did not know how to set it up correctly! Yes, he could have used his self-directed IRA for this purpose, but for whatever reason he didn't.

A "Low Ball Offer" backed up by a strong Attorney’s Proof of Funds Letter or Bank Account can beat a higher bidder who can only provide a “Pre-Approval” Letter from a free service provider posing as a legitimate POF's letter. So, make sure you know the difference, and what is required by the seller or bank - because they will know the difference, and FAST CASH IS KING!

Questions? Call: Yvonne Jones – Private Financial Club’s “Honey of Money” Proof of Funds Hotline for answers.

Hard Proof of Funds: Hard Proof of Funds is used when you need to show verification of funds in a bank or escrow account, in your company’s name, for a particular project, for a required dollar amount, and for a certain period of time.

Soft Proof of Funds: Attorney's Soft, Proof of Funds Letters are typically used for securing a contract and are more affordable then moving Hard Money into a bank or escrow account.

Some banks and sellers may require either one or both; and if you are not prepared to provide Proof of Funds quickly, you may run the risk of effecting your credibility in a negative way; which in turn, may cause them to overlook your offer for another bidder; so, it is imperative to be ready to provide a Proof of Funds.

I'll tell you a great way to get a good proof of funds letter.
www.insiderscash.com is a great option for you to get a proof of funds letter as well as to get funding for different types of real estate investments.
They offer Transactional lending for double closings.
They offer up to 3 month loans similar to Hard Money Lending.
They also offer up to 2 year financing for you as well.
This is a great option for you to use and look at for future deals.
Hope this helps.

Happy Investing!

Matt W.

Thanks for sharing this link Matt! It's very difficult to find hard money/private money lenders who offer the type of funding options www.insidercash.com does. Great hookup for investors!!

Roni

Here are 3 websites you can go to in order to get a Proof of Funds Letter.
http://insiderscash.com/index.php?id=private/proof_of_funds
http://coastal-funding.com/pof.html

All of these are websites where you can get a free proof of funds letter to use when making offers on REO or Bank Owned properties.
Great resources and by using these proof do not tie you into working with them as lenders.
Great resources and will help you out.

Happy investing!

Matt

Hi all.
anyone can answer this.
do you only need a proof of funds letter when buying a property, or can you get one because the realestate agent wants to see one?

Most of the time we use Proof of Funds letters when we are making offers on REO bank owned foreclosure properties. Banks request them to be attached to the offer when presented. If a real estate agent ever asks me to send them a proof of funds letter to keep on file, I always respond this way.
I'll say "I don't send out Generic Proof of Funds letters because that takes away my negotiating position. But I'll be happy to provide a proof of funds letter with every offer I make" Whenever I have said this to an agent, I haven't got any negative responses to this. I'll even tell them if needed that it wouldn't be good negotiating if I sent the bank a proof of funds letter for $300,000 when my offer amount is only going to be $153,000. Proof of funds letters are so easy to print out and generate so if my offer is going to be $153,000, then the proof of funds letter will be for $153,000.
Keep it simple.

Happy Investing!

Matt W.

Last night me and my wife signed a contract only to have the agent tell us the POF letter was not good enough.
It was from iVisionary Funding. The problem is that the letter needed to state Amount, 20% down even though i be funding 100%. The bank was BOFA (Broke of America) which should be there name I think

I like to find a T.F. lender that will modify the letter as need for the short sale we are working on.
The REA said the deal would be solid if the POF letter would be modified enough for that.
That was a good suggestion by the REA.

Any thoughts comments or places to look at?

I want to send out multiple offer, some of them are short sales, Fannie mae, and my agent was asking for proof of funds.
Where shoud I get it?
Should I send for each property, where the bank is involved?
Sholuld I send it for the offered amount?
Thanks
Zsuzsa

Check post #34. I use this stuff every day.

Michael

If you are using www.insiderscash.com or www.coastal-funding.com to get your proof of funds letters, there is also contact information on the letter that the bank can contact to verify that money exists. That's usually why banks are asking for more information like bank information. I know that both of these transactional funders are verifiable and we as a team have used them to purchase multiple properties. As I mentioned in previous posts, we have used them specifically with REO properties. Short Sales are the wild card where the banks can and sometimes drag their feet and ask for more information.

Hope this information helps.

Happy Investing.

Matt Walton

Hi, I tried to get a POF letter from the site you recommend insiderscash, they say you must attend one their seminars in order to become a member. Did i miss something?

Also I used coastal funding before that letter was rejected. I have a hot deal and someone to back me but I need a good POF letter that will work.

Mike

Can anyone help with a POF letter that would be accepted.

Thanks, Mike

Can anyone help with a POF letter that would be accepted.

Thanks, Mike

Can anyone help with a POF letter that would be accepted.

Thanks, Mike

I personally think all new investors would do so much better if they spent all there time learning how to find deals "NOT ON THE MLS" & talk to home owners directly. Dealing with agents & the MLS right out the gate, is probably the hardest thing you can do & it is bound to make you want to quit.

With Jay.

Get your buyers list and then get those bandit signs out for fsbo deals.

No POF or Earnest money needed.