All Forum Posts by: James Danchus

Originally posted by @Johnny Kang:

@James Danchus

POF doesn't mean it has to be yours. So connect with an investor/hard money/friend/family and develop relationships with them. Some deals we work on are outside of our available funds. I just have one of my buyer/investor send me their POF and sellers/agents have never asked me "who's funds are those?"

 What does it look like? A bank statement or something?

Originally posted by @Nirmal Khanderia:

@James Danchus, you can try getting POF from a hard money lender. I met with one last week in our local REI, and he offered me to provide POF for a deal, if asked by the seller. If you need transactional funding to make the deal, HML can provide that too. Typical rates for transactional funding is 3-3.5%.

Hope this helps.

 Do I need to get one for each, individual, offer?

I disagree totally.

There are two different schools of thought on this. Obviously, deals are important but if you get a good buyers list, you can leverage it in JV deals with other wholesalers who already have properties under contract.

BP,

So I am listening to a few different podcast the other day and I heard someone say that they average 40 addresses per hour when they are out driving for dollars. This is absolutely insane to me. Either their standards are much lower than mine or we are driving in 2 completely different types of areas.

Usually, when I am out looking, I'll find two addresses in an hour that fit the bill of a distressed home and, if I'm lucky, one of them will pass the eyeball test when I am putting them through the appraiser's website.

What am I doing wrong?      

Originally posted by @Percy N.:

If he had a LOC already setup, he would not need to call the bank but just write the check.

The call implies he is going to apply at that time. A million dollar LOC goes through several committees at the bank, even if you are Bill Gates.

Just ask for a 10% or higher deposit if yoto sell to him.

Can you define LOC for me?

BP,

I got a quick question regarding cash buyers. 

So I was cold calling CL ads today to network with cash buyers. I got a guy on the phone, we spoke about how many properties he has, what he likes to buy ect. ect.. So I ask him how long it generally takes him to close, and he says he can get $1mil from the bank with one phone call.

My question is, is this guy a real cash buyer, as people in this business talk about them? Generally, I've thought cash buyers were people who could cut a check for you right then and there. Should I keep him on my buyers list? Has anyone done deals with buyers like this?   

I can but she just called me back and, after a little digging, she started talking about all this stuff she did to the house, and how three other people are interested, yada, yada, yada. So the real problem was the number I gave her, not the POF.

Thanks for the help anyway. 

The thing is I sent her an offer letter, with a number on it, and she hasn't even told me one way or the other what she thinks.

BP, So, I'm trying to get a deal off the MLS and this agent, after telling me that her client is motivated, tells me she needs a "proof of funds" in order to entertain any offer. The problem is, as you probably guessed, I don't have a buyer in hand or enough $ to buy with cash myself. I'm sure this is a pretty common occurrence. Any suggestions?