REOs/Proof of Funds

[Brian G.]

I got an email from my real estate agent saying that any foreclosure properties I want to submit offers on are going to need a proof of funds letter. I've read that you can use a Coastal Funding letter to get around this issue, but I need to figure out how to proceed while being up front with my agent. I never mentioned that I would be assigning the deal, but I said I would be bringing in a partner who is a cash buyer to close the deal. Even if I got a proof of funds letter from a local investor, I can't guarantee he or she will be the person who buys the deal from me...

Please let me know your thoughts and opinions on how to solve this proof of funds issue. Thanks.

Brian

[Mark A.]

Brian
Buying and selling REO's is cool once you have it down!
If you want to do that then do it, stick with it, do it well and make your money.

Buying it is no big deal but you absolutely need to have your end buyer in place quickly. This will obviously depend on your buyers list and your contacts. Splitting your profits 50/50 with a wholesaler who has more buyers than you is normal and should be perfectly OK with you. You need to Get It Gone!
I'll assume you have that part covered.

Trust me on this (I'm speaking on our own FL situation) There ARE title companies out there who will do a double closing WITHOUT you having to bring your money (or transaction funding) to the table. Most investors here use the same company, they are awesome, they know their stuff, they have their own attorney's in office etc. and they perform double closings all day long, every day. It is perfectly legal when done correctly.

As for your initial purchase: Why are you using an agent?
When we buy an REO, we buy it from the agent who has it listed.
Ask that agent to write the offer for you, they will be happy to do it because you just gave them both sides of the commission!
Doing that will also give you a much better shot at getting your offer accepted by the bank.

Your Proof of Funds: You are now dealing with the selling agent on a particular property so that person will ask to see one letter, one time.
POF is easy, use one from Coastal or PM me if you want another way.

Closing the Deal: First off, you probably had to put up $1K for escrow on the deal. We require $2K cash deposits on all residential transactions so if our buyer doesn't close, we still made a grand instead of losing one.

Off you go to the closing company, your buyer is all set with cash or hard money (assumed) You sit back, let the title company do their thing, collect your check and head home to do the next one!

You were going to and did buy the property as was your initial intent with the agent. What you did with the property after the fact is neither here or there!