very basic hard money question here

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I have not used hard money yet. So far, just used my own cash. But I miss a number of good deals because they are just out of reach. What usually happens here in Michigan with a good REO deal, is that it will list one day, get 5-7 offers, go over asking price to the person with cash buying as-is. You have to have proof of funds and submit the offer on day one.

So how does this work with hard money? I've seen the websites where they say you get funded in 5-7 days. But still, you have to submit a breakdown of expenses, and show you have the contract. This seems like a catch 22. Can't get the deal without the money, can't get the money without the deal. So how does that work with putting in offers? How do you show proof of funds? Thanks