How to make an offer without proof of funds?

How to make an offer without proof of funds?

Hello everybody. We are just starting in this business and have a lot of questions. There a lot of good deals
in short sales, but most of the banks
even for cash transactions require proof of funds with the offer. So the question is how can we make an offer without the cash and later assign to another investor? Thank You in advance for any help You can give us.
jane.

__________________


Proof of Funds

Jane,

You can use a transactional lending company to get a proof of funds letter, you don't actually have to use them for the funding and the letters are free. I like to use tempo funding: http://www.tempofunding.com/index.shtml

There are others out there, but their letter generator is easy to use (I think I have over 50 of them so far!).

Happy Investing!

__________________

... Verses: 35 "but those who hope in the Lord will renew their strength. They will soar on wings like eagles; They will run and not grow weary, They will walk and not be faint." Isaiah 40:31 ...


Offers with out proof of funds

You don't assign a deal you secure with transactional funds!! You must do a double close and have a real buyer with real money in place to do this type of deal.
The transactional funding company will not fund without your buyers funds in escrow.

Also do extensive research into how you as an investor can make money doing a short sale, the paperwork involved and how long it takes. I would not recommend this to a starting investor but this is just my opinion. Why not try getting a homeowner under contract? You can assign that to a buyer with ease! Look for fsbo, for rent, divorce, lost job, foreclosure type distress situations. They need equity in order for you to assign it and make money and an investor to buy it from you and him make money also.

Have you read Dean's books? If so read them again! Think about joining his success academy if you have not done so.

Good luck investing!
Michael Mangham
MD Home Acquisitions LLC

Hope this helps
Michael Mangham
MD Home Acquisitions LLC

__________________

Knowledge is power, but execution trumps knowledge. Tony Robbins

http://www.mdhomeacquisitions.com Seller site
http://www.mdhomeacquisitionsbargainhouses.com Buyer site
http://www.mdhomeacquisitionshousehunter.com Bird Dog Site
http://www.mdlodeals.com Tenant/Buyer site


Proof of funds.

Thank You very much for Your response, but I need little bit more clarification.
The question is If I do not have proof of funding, yet, for the offer to be accepted, how can I fulfill this requirement:
* Proof of your control or interest in the property: memorandum of trusts, notice of option or deed
* A to B Contract: first closing (where you are the buyer)
* B to C Contract: second closing (where you are the seller)
* Copy of the Short Sale Approval Acceptance Letter
* A to B and B to C (estimated) HUD1 settlement statements
* Preliminary Title Report from Escrow/Title (Prelim)
* Closing Location (name of closing agent and contact information)
* Closing Date
Thank You in advance. Jane.


Short sale

There must be an offer to purchase made to the lender for the short sale process to take place. So you must make an offer to purchase, use the proof of funds the transactional funds lender(or private money or?) will provide and a earnest money check. They won't do it any other way that I know of. If you can not make a legit offer to purchase than it won't work. In the mean time as soon as the bank accepts your offer you list it, get it under contract and do a double close. As you listed a to b and then b to c. All very nice and easy in theory. How do you intend to make a profit? I know a very active short sale investor that closed 31 short sale deals last year and only made $110,000. He said he was going to try higher end properties but knows they can stay on the market much longer that entry level SFHs making it hard for a person that needs to double close to make it work. He does not, he funds his deals, closes and then lists them, making it MUCH easier!
You can do it no with out question it just takes alot of time and effort!

Hope this helps and good luck!
Michael Mangham
MD Home Acquisitions LLC

__________________

Knowledge is power, but execution trumps knowledge. Tony Robbins

http://www.mdhomeacquisitions.com Seller site
http://www.mdhomeacquisitionsbargainhouses.com Buyer site
http://www.mdhomeacquisitionshousehunter.com Bird Dog Site
http://www.mdlodeals.com Tenant/Buyer site


Assignment Question

My friend and I have partnered together to do assignments here in Houston,Tx. We have done exactly what Dean's book has instructed. We are building our investors list as well as our sellers list. My question is, how do you do coastal assignment deals. We have an investor with a property management team that is looking to buy a bunch of properties and stated he wanted to establish a "personal" long term relationship and doesn't mind if we find property outside of Houston. We are also going to a free network tommorrow and will be aggressively networking. I would like to hear from everyone that has successfully profited from assignments.


????

What is a coastal assignment??

Michael Mangham
MD Home Acquisitions LLC

__________________

Knowledge is power, but execution trumps knowledge. Tony Robbins

http://www.mdhomeacquisitions.com Seller site
http://www.mdhomeacquisitionsbargainhouses.com Buyer site
http://www.mdhomeacquisitionshousehunter.com Bird Dog Site
http://www.mdlodeals.com Tenant/Buyer site


proof of funds/don't have any funds

What is a transactional funds company? Right know I do not have any cash for investing in re.

Thanks,
Peggy


making a offer

This is probably a common problem for a lot of people so I would like to know exactly how the process of making a offer works with no money. I understand a Assignment contract with the contingencies and /or assignees in it, but don't I have to have the funds immediately and/or before getting a property under contract using any strategy?
EX.
I find a potential deal, i make a offer and the seller agrees, what then? with no money or great credit how do I get that property under contract?? does it all depend on the contingencies in the contract?
Im just starting out and don't totally know the process yet.
please help thanks


making offer

devan wrote:
This is probably a common problem for a lot of people so I would like to know exactly how the process of making a offer works with no money. I understand a Assignment contract with the contingencies and /or assignees in it, but don't I have to have the funds immediately and/or before getting a property under contract using any strategy?
EX.
I find a potential deal, i make a offer and the seller agrees, what then? with no money or great credit how do I get that property under contract?? does it all depend on the contingencies in the contract?
Im just starting out and don't totally know the process yet.
please help thanks

Well I'm a beginner also I hope this will help you. When you find a potential deal talk to the seller to sign the investors disclosure statement explaining what are your intentions and how much are you going to profit off it. After that sign the purchase agreement contract and then find an end buyer/investor. Then let the seller know that you got an end buyer and they are interested in the property. Lets say the buyer agrees to buy it then you would let the seller sign the discharge of agreement and put in the amount you are assigning for and give that to a closing attorney or escrow agent. Then the seller signs the purchase contract with the end buyer done deal when they close you get paid buy the escrow/attorney then move on to the next one.

Now this is all in D.G.'s book -Profit from Real Estate Right Now- For me as a beginner I would stick to the fsbo, pre-foreclosure, rent, etc. If you run to a dead end a few times its OK pick yourself up and keep moving!! BTW its good to have an Real Estate Attorney with you to verify documents in every step you take.


Found Property 30% less of market value

I'm also new, and I've found a property at 30% under market value with the help of my amazing Realtor. Now, how do I make an offer with no funding?
Please help any ideas?

__________________

-Carlos Jimenez


need help

Michael
I live in the Denver metro area and just getting started with the DG family and I'm looking for a mentor/partner too work with in my area. Do you know of anyone? My goal is to buy one property by the end of Jan. 2011 And to buy two a month moving forward. Can you help?

God bless
Jeffrey Darnell


Another thing to consider

Also consider that you can make offers all day long without any proof of funds at all. We've had 3 contracts in the past few months accepted with no proof of funds whatsoever. It's true banks may require them, but remember there are all sorts of deals out there, and maybe an estate will agree to take a contract without proof of funds. Keep looking around, and see what options are out there. Don't just look with the banks. They are the strictest around...


Syndicate content