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What happens after I provide the RE agent with my "proof of funds" letter????????????

Posted on: Wed, 03/11/2009 - 06:20
What happens after I provide the RE agent with my "proof of funds" letter????????????

Can someone help me with the next steps.... I have several (REO) props I want to make offers on... After I submit to the RE agent my "proof of funds" letter will she require me to give her an "earnest $$ deposit?" If so, how much is required? Does the amount depend on the asking price/offer price/ ...? What is the "rule of thumb?" Also, will I need to complete a "purchase agreement" with the lender at this time???

Thanks for your responses!!!

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Posted on: Wed, 03/11/2009 - 09:32 #1
wealth2009

You only need to give earnest money if the offer is accepted. I am only doing $500. That is what I can afford. I first sent my offer via email. The agent wrote back and told me he didn't think the offer would be accepted, however, if I still wanted to make the offer he would draft the paperwork. I provided a copy of my proof of funds letter and a copy of the earnest money check for $500. Now, I am waiting to hear back from the lender. I did everything over email and fax. I haven't even met the agent in person. What do you plan on doing with the property if the bank accepts your offer?


Posted on: Mon, 03/16/2009 - 03:30 #2
How much EMD is necessary to satisfy the lender....????

KimmyJ7601 wrote:
You only need to give earnest money if the offer is accepted. I am only doing $500. That is what I can afford. I first sent my offer via email. The agent wrote back and told me he didn't think the offer would be accepted, however, if I still wanted to make the offer he would draft the paperwork. I provided a copy of my proof of funds letter and a copy of the earnest money check for $500. Now, I am waiting to hear back from the lender. I did everything over email and fax. I haven't even met the agent in person. What do you plan on doing with the property if the bank accepts your offer?

Thanks for the info. .... I guess my confusion happens to be when I hear other investors say they only "copy" their EMD checks and send them to their agent? I did not know you could send the agent a "copy" of your funds? One investor stated she makes "copies" for of the same check for ALL of her REO props. Also, I do not plan to submit ANY funds to the lender, except they "accept" my offer(s)...

I plan to wholesale the props to other investors... Since I have an LLC, I am told I can "assign" the props to my LLC in order to complete the "and/or assignee" clause, is this true??? Thanks for your feedback???