Proof of Funds Letter

[rvolk75]

Hey guys,

I had a website lead contact me a few times now. I have not met him face to face, but I've spent good amount of time with him on the phone. He was on my website and saw a few houses that he likes and wishes to see. These houses are all $10MIL+. He says he's a cash buyer and he has no limit on the maximum price.

I told him that in order for me to schedule a showing, I would need for him to send me a "Proof of Funds" letter, indicating that he has sufficient funds to buy.

Since I've never dealt with properties in this price range, perhaps some of you have. Is having a "Proof of Funds" letter enough? Should it come from his bank/financial institution?

What information should I request even before scheduling a showing? I want to make sure this guy is for real.

Thanks in advance.

Russell

[RyanRE]

That's a tough call Russell. On one hand you hate to waste everyone's time, and on the other hand you don't want your client to get mad a work with someone else.

I recently made a cash offer for a client on a foreclosure and the bank required proof of funds. I had the buyer send me a copy of his bank statements with the account numbers blacked out. It just showed his name, the financial institution, and the balance. This was acceptable to the bank and worked for me.

[AugustaREGroup]

I have made my bank have a template of a letter on hand for me, signed by a acct rep. every time. This is sufficient for the government (HUD homes), so I am sure your client would be able to do this pretty easily.

[satxproperty]

Until he is ready to show you his bank statement or it is time to close ... you probably won't know for sure.

We have had a couple high dollar cash buyers (sadly not too many more) that were asked to provide a letter.

One of letters was more of a background of the buyer. They happened to own several chain franchises that the seller's agent could then verify independently.

The other letter was from the persons attorney/cpa stating he had significant assets.

Neither of which stated a dollar amount. Where the rubber hits the road is when they put 20% down payment with the contract.

[rvolk75]

Thanks for the advice. I don't want to scare him off, but you're right, I don't want to waiste anyone's time.

BTW, according to him, he's also interested in Two Liberty Place condos in center city Philadelphia. The one that he likes is selling for $30M.

Take a look at his link:
http://www.philly.com/philly/news/Lu...rty_Place.html

[satxproperty]

Find out more about him on your own ... people with that kind of "where with all" you should be able to find out about. (Even via Google)

Fortunately, for us, our high dollar clients were just that, high profile... for us basketball players, restaurateur and attorney.)

[RESteve]

What a great lead, Russell! I say just take the opportunity to give him the benefit of the doubt. What do you have to lose? Time most likely. If he requests a showing, I'd show him a condo or two, and then begin to insist on getting that letter.

[satxproperty]

What a great lead, Russell! I say just take the opportunity to give him the benefit of the doubt. What do you have to lose? Time most likely. If he requests a showing, I'd show him a condo or two, and then begin to insist on getting that letter.

I don't know about there... but, here much over $2 or 3 million homes and the seller's won't even schedule an appointment (if occupied) without some sort of proof of ability to buy the home.

[Micheal Pannell Realtor]

If you havent been following what happen to us. We had a guy that talked a good game. He got to closing and closed and never would fund. Blamed it on the IRS. Then when it was suppose to fund after 2 weeks he shot him self in the head. It was a 7.6 million dollars property. The seller trusted him so much that he let him move in and the buyer killed him self on the property, in the barn...

Shotgun to the Head, in the mouth, Left the wife that had no clue with the bag. Talk about shitty

[rvolk75]

Same situation here. Any house over $3M here, the sellers will require some kind of proof of funds, before scheduling a showing.

Regarding learning more about him, he told me the name of his family. And I've heard of them before, but how can I prove that's he's telling the truth.