Making Offers With Private Money

[Camron Cottam]

How do you make cash offers on properties that require proof of funds when you are using a private money investor? I am working on my first deal with a private money lender and using the BRRRR strategy.

Will I need them to provide me with their bank statement? Does it matter that it is their name on the bank statement and not mine if I am purchasing the home under my name? What if they are not willing to provide a bank statement? 

[John K.]

@Camron Cottam

If a simple POF letter from your PL will not suffice, the title company would probably have no issue in verifying the funds are available for your seller. I would not go down the road of asking for bank statements and then handing them over to complete strangers, you could get into a really ugly legal problem with that.