At What Point Must You Submit Proof of Offer In NYC?

[Thomas Fawole]

I recently notified a broker that I was interested in making an offer on a 4-unit fully occupied property in New York City. The broker gave me the monthly rent for each unit and an estimate of the annual rental income and expenses. He also said that the seller was prepared to finance the deal. The broker asked for a proof of funds letter. I asked for the 12-month trailing rent roll and the actual income and expenses sheet for the property. He said in New York, sellers/brokers don't provide those documents until there is proof of funds or proof that the buyer has done one or more deals in New York City. Unfortunately, my private lenders wouldn't provide the proof of funds unless they see the actual documents to be sure the deal is worth their time. I'm just starting off. Is it true that these two documents are not released to the buyer in New York until the buyer has submitted the proof of funds letter? If so, how can one get around this problem, as I'm expecting some other deals from another source and I don't want to run into this same problem again? Thank you.

[Shawn Ackerman]

@Thomas Fawole Not really sure what's going on with your lender. POF is not worth the paper it's printed on and in no way is it a guarantee that they will lend on the deal. In fact many lenders pull out of deals last minute so to say that they want to see all of the details first before issuing a POF doesn't really make much sense to me. I'd question how many deals the lender has done and get a back up lender in the meantime. Banks give Pre-Qualification letters based on a few docs and they are probably larger than your current institution.

If all units are occupied I take it your not house hacking.  I'd look at a conventional lender @Jerry Padilla He's done multiple deals for me and his bank offers soft money loans with 30yr AM's.  Best of luck to you.