Proof of Funds From Potential Private Money Investor

[Boris Slutsky]

Hi Everyone,

I am pretty new to raising capital, so far I only purchased my primary residence and one investment property with my own money.

I am currently looking for private money investors who can help me to fund portion of the entire downpayment for my next property and I have few people who said they might be interested in being dept partners in the deal.

My question is, how do I provide a proof of funds for lender or to the listing agent to even get pre-approved for the loan or to get the deal under the contract. It a bit confusing, as to get my private money investors fully signed up I need to have a specific deal, but I cannot get the deal secured or even get the financing secured until I have the investors with the funds. Is there a way of using my investors lets say statement showing the funds available + some broad letter of intent stating that they have general interest in investing with me or someting like that?

Hope to hear back from the community!

Thank you for you help in advance!

[Boris Slutsky]

Hey Bill,

Thank you for your response. What I have in mind is more of the value add situation. This way I can do interest only payment with 2 year balloon. But like you mentioned, unless the value of the property goes up significantly, the cost of selling will most likely eat all property appreciation or even worse.

Like I mentioned I spoke with few people who might be interested and yeah, they would expect to get about 10% interest.