Real Estate Investors – How to Draft a Proof of Funds Letter

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If you’re shopping for quick gross sales from banks one of many necessities from most banks is a proof of funds ("POF") letter. If you’re utilizing a standard lender it’s typically simple to get a typical preapproval letter. However what if you will use personal lenders or laborious cash lenders the way you get proof of funds letter.
I’ve drafted a number of instance for you employ in numerous circumstance relying in case you are utilizing personal lenders for laborious cash lenders.

A typical POF letter from a non-public lender is likely to be as follows:

To Whom It Might Concern:

My title is Sammy Lender ("Lender") and I’m personal investor. Mr. Joe Actual Property Investor ("Borrower") has the supply of personal funds from the for the needs of buying a single household house at 123 Foremost Avenue, Anyplace, USA. The Borrower has an authorised availability of funds within the quantity of $ ____________________.

The Borrower (s) has speedy entry to those funds topic to regular phrases and situations previous to closing. These funds can be found instantly for wire switch as instructed or directed for disbursement by the borrower.

Within the occasion you want to confirm these funds please tackle your calls to the contact data supplied under and we’ll do all we are able to to help you for the profit our Borrower.

Sincerely

Sammy Lender

A POF letter from laborious cash lender might learn one thing like this

To Whom It Might Concern:

This letter is to substantiate a optimistic working relationship between xxxxxx Funding, LLC ("Lender") and Joe Actual Property Investor ("Borrower"). Inside Lenders Pointers, Lender will present Borrower with the quantity of funds as much as $ xxx, 000, to buy actual property situated at 123 Foremost Avenue, Anyplace, USA. Borrower has been pre-qualified for a fast money closing.

Cordially,

These are each instance so that you can use or modify to suit your wants. They need to be acceptable by most banks to satisfy your POF letter requirement.

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