CA Purchase contract

[Kevin S Christensen]

I am a real estate broker, and homes that I have sold to investors have large down payments or cash. Off of the purchase contract, I would verify proof of funds, ask for prequalification letter from a lender if buyer is receiving a loan, with a good faith deposit. I'm having a hard time thinking about how myself could buy property to flip with OPM. What would the offer look like in the financing section? I have no proof of funds to verify my ability to buy. I have no pre-qualification letter. I watched a video about house flipping, and he said to secure a property before a hard money and gap lender. I understand his point that the lender will be interested and your deal when you have an actual deal in hand. So, as an investor is making an offer through a Real Estate agent/Broker using OPM, what type of verification and verbiage do you supply to the seller to show your ability to buy?

[Connor Hibbs]

Hi Kevin, the closest think I can think of for you would be to have a partner who supplies the liquidity on your Operating Agreement. Lenders do not provide funds without confirming any liquidity in the property. By having a wealthier partner on your Operating Agreement, you would have something that lenders could verify for liquidity.

Or if you would want to take a HELOC out on your primary you could do that, but I'm not aware of anyone that lends money without confirming that the borrower has funds of their own.