Getting a proof of funds from HML to go in offer: takes too long?

[Ashley Benning]

This is the second time I've gotten to the offer stage on a fix and flip property. In my market, Los Angeles, these properties go FAST. It was listed on Thursday, I saw it Friday and emailed a few HMLs to ask for proof of funds letters to go in my offer, and I need to submit my offer tonight and I haven't gotten any letters back. I've already been pre-approved. Aside from predicting the future, how can I change my process so that these letters come in a more timely fashion? My realtor says if the lenders aren't getting back to me on the weekend then they aren't good enough to work with me. But I also know these are people who need a work/life balance. All I need is a letter stating: Ashley is approved to offer cash up to x amount and a quick close on property 123 Main Street. That's it! Any suggestions?

[Christopher Phillips]

@Ashley Benning

There will be two or three levels of MLS properties that say "cash only."

Some say cash only due to the condition of the home. They know it will never pass an inspection for a conventional/FHA/VA/USDA loan. That would be a great place to use an HML. Sometimes they say "cash or 203K only."

Some say "cash only" because they want a quick close with no fuss. An HML might still work there with some "convincing."

Some say "cash only" because they mean it. they don't have time to wait or they are tired of dealing with the lending process.

Somewhere in the financing section of your offer you would put that you are using hard money. And include your lender's POF, Preapproval or letter of intent, whatever form they like to provide.