Question about POF letter with REO properties (Transactional funding)

[Katrina P.]

I just got off the phone with a Realtor whom I told I have Proof of Funds for a REO property. He asked me was it an FHA loan, and I said "no, it's transactional funding". He didn't know what I was talking about, and asked me to explain. He wanted to know if it was a cash offer, and I told him it was financing from an investor. He said, "well, your're going to need to show a bank statement from the investor, proving that the money is in the bank". He also didn't know what a back-to-back closing was. How do I handle situations like this with Realtors? How do I explain transactional funding to them when I'm asked? Is it actually cash from an investor, and will I need to show that money available? I am just getting my feet wet in this business, and learning as I go. I'm reading on this site at the fastest rate I can, but haven't come acrros this yet. Any advice?

[Bill Gulley]

Hi, I am all about being truthful and disclosing deals, but you also don't have to tip your hand so far, especially with Realtors that don't have a clue.

Does your investor have a company name? If so you're getting a loan from XYZ mortgage. If the Realtor says he never heard of it, just say that's where I get my loans and leave it at that!

You don't want the listing agent to present your offer like it's an unlikely deal because he has no knowledge of the company, but getting into your sources of funds is really none of his business, other than the liklyhood of your being qualified. A letter should do it just as a letter from any other lender.

I have played dumb sometimes, I don't always say I've been there done that, so if a Realtor I don't know quetions me, I turn the tables, well have you heard something bad about XYZ? Do I have to get my money from a paticular lender for this type of deal? Tell me what you think, I'd like to buy this house.....such comments usually shuts them up!

Good luck, Bill