All Forum Posts by: Ryan Gillis

Thanks for all the feedback so far. It's all been helpful. For a little clarification, the market here in the San Diego area is extremely competitive. REOs are getting 20-30 offers the weekend they hit the market. My understanding is that banks here aren't really accepting anything but strong cash offers with favorable terms.

Catrina this next part may be helpful to you, but I haven't done it myself and I don't really want to support the ethics of this strategy. I know of investors here that will submit their offer as cash with a separate "proof of funds person" on the offer (including their bank statement), usually vested at 1%. 3 days before escrow, the investor informs the bank that their cash has been tied up in other projects and they will be using hard money to fund the deal, giving them all the information of their HML. Again, I'm not recommending this strategy, but I know of people that have used it many times without fail.

I would like to find a way (as simple as possible) to ethically write offers that have a chance of being accepted in this competitive market, taking into consideration my need to use hard money and gap funds. If anyone has any other suggestions, I would love to hear them! Again, thanks for the input so far.

I have received mixed information on this. I am wondering how you guys are writing your cash offers on REO's and shortsales regarding proof of funds. I'm planning on using a combination of hard money and private investors for gap funds. I have these squared away, but I need to know how people are writing the most successful offers, specifically in California, if possible.

I've heard that some people submit a bank account statement from a "proof of funds person" and depending on who you talk to, add them to the contract or they don't but add a "gift letter" with the bank statement. I have a couple people that I can use for proof of funds in a cash offer, but they would likely be not be interested in signing all the paperwork for each offer we submit and/or follow to close. They would also be leery of any risk involved with being on the offer. The plan would be to deed the property over to our corporation at close.

I've also heard that some investors are writing offers with a clause reserving the right to use hard money and that some are simply telling the bank that they are switching to hard money right before escrow (without having the clause in the offer).

I'm looking for some help to clear this up and get some good feedback on what is working for you guys (again, preferably in CA, but open to hear posters from anywhere).

Thanks!