Hard money. Ready to make offer and need proof of funds

[Angel Garibay]

I found a couple properties that have been on the market for a while and would be perfect candidates for a BRRRR in my area at the right price. So I contacted my brother who is a RE agent and he said that he would be more than willing to submit any offers at whatever price I want all's he needs is proof of funds.

These would be my first offers on any investment properties and a lot of them are going to be at around 50% or lower of the actual asking price but I figured some offer is better than no offer because all of them need a lot of rehab.

So my questions are: How do I find a hard money lender? How does the process of making offers with HM go? Is there anything that I should specifically be looking out for? What do I need to do on my side of things to make everything go as smoothly as possible?

[Kyle J.]

I would disagree that some offers are better than no offers when you’re talking about making offers with other agents on listed properties at 50% or lower of the asking price. That’s just a huge waste of time in my opinion (if not yours than certainly your brother’s). 

Exactly zero homes in my area are closing at under 50% of their listed price (or anywhere remotely close to that), and making offers like that could earn you a reputation as someone who isn’t a serious buyer or doesn’t know what they’re doing. 

If you want to try and pick up homes that far below market value, you should probably try and focus on off-market properties. Not ones that are listed with agents.

With off-market properties you also don’t generally have to worry about showing “proof of funds” as it’s usually agents (not sellers) who ask for that.