Team Presidio Tips NO PROOF OF FUNDS NO OFFER
Team Presidio Tips: NO PROOF OF FUNDS / NO OFFER!
With "fix & flips" and "buy & holds" on the rise, especially with these "seminars" cranking out this new breed of inexperienced investors who are flooding the market, it's important that both selling and listing agents are aware that a "CASH OFFER" might end up being a being a "Hard Money Loan" transaction at close of escrow. (Surprise!)
Even more surprising is how many newbie investors not only have ZERO cash in their bank accounts, but haven't even been approved for their hard money loans at the time of the offer! (WOW!)
This is greatly impacting the sellers, who take their homes off the market and reject legitimate offers in good faith, only to find that these "Cash buyers" actually have zero cash.
Realtors - Please be sure to pay attention to the new verbiage on the 2017 Purchase Contract that reads:
"IF THIS IS AN ALL CASH SALE: A Letter of Credit or a source of funds from a financial institution documenting the availability of funds to close escrow IS attached hereto".
Investors, this is in an effort to fully disclose to the seller if you truly have cash in the bank or if you're actually in the process of obtaining a hard money loan. Full disclosure is the basis of our business and you're not disclosing correctly if you're placing a cash offer - intended to beat financed offers - when you actually have no money in the bank is a problem.
Bottom line: You must accompany your offer with documented disclosure as to where your cash is coming from. Your hard money lenders are more than happy to provide a letter to you. #DiscloseDiscloseDisclose #ShowMeTheMoney #JustAskBillyA #ThankYouAAR
If you are looking for an agent who will protect you on every side of your transaction, please contact:
Justine Wadsack, Realtor
CEO / Team Leader THE PRESIDIO TEAM of EXP REALTY Servicing: Tucson, Oro Valley, Sierra Vista, Green Valley and Sonoita, Arizona I am an expert Realtor(R) who leads a team of top producing Real ....