DId a seller ask you for a proof of funds letter? My guess is that they probably didn’t. Unless, of course, you’re working with a Realtor, and REO agent, or directly with a bank. On a rare occasion, you might get a sophisticated seller that asks for one. So what are you going to do?
Typically, if you’re a real estate wholesaler, you don’t have proof of funds. You may not have any funds at all! Providing supporting documentation showing that you are capable of closing on the house might be challenging.
What is Proof Of Funds Letter?
A Proof of funds letter is something showing that you are financially capable of closing on a wholesale real estate transaction. Making an all-cash offer may trigger a request showing that you have that amount of cash available.
This is typically requested to trump any “financing” contingencies or reasons why you may leave them hanging at the closing table. However, a request doesn’t necessarily mean that you have to show them your bank statement. It can come from various sources, like a partner, your IRA account, or from a private lender.
How to Get A Proof Of Funds Letter
Are you making an offer on an REO or a short sale and need a Proof Of Funds Letter? Maybe you even need the CASH to close on the front end? Relax! The Mobsters have connections. Best Transaction Funding will provide you with both.
Don’t worry your little head if someone requests to see proof that you can close. Have confidence in yourself and be ready to provide them what they’re asking for. If something happens and your deals fall apart, relax. Understand that real estate deals fall apart every single day and it’s not the end of the world. Therefore, everyone will move on with their lives and no one will be harmed in the process.