What do you qualify as a proof of funds?

[David Cheng]

Currently have a listed 4-plex for sale, 100% occupied. As a screening tool, I ask for proof of funds before we bother a tenant and show the property. 

To me, any liquidity qualifies: bank letters, bank statements, stocks in an investment account that covers down payment, etc.

Today, I got a letter from a hard money lender saying the buyer is approved for 1/2 the listing price of the property. No proof of liquidity.

When I asked for any proof of liquidity, the realtor says they are not interested in jumping through hoops and called me a jackass.

Is this how business is done now? 

[Jeff S.]

You have nothing to prove to anyone, @David Cheng, and there's no need to apologize. It’s your property and you can sell it FIBO, with an agent, by any other legal means, or give it to the ASPCA. Asking for proof of funds is reasonable. A proof of funds letter without any credible evidence to support it is empty rhetoric and a waste of your time. So, who was the real jackass?

When we are asked for a proof of funds, I will write a letter, likely similar to the one you received, and I always include a redacted bank statement. Evidence like this is standard among all HMLs I know. Why else should anyone believe us?

Any agent who believes that providing a complete proof of funds letter, which they don’t even prepare, is jumping through hoops is simply lazy. If he or she were representing me, it would not be for long.

It’s your property, David. Stick to your guns.