What exactly is a proof of funds letter and how does obtaining one fit into your real estate investment success? Sometimes it is easiest to understand proof of funds if you put yourself in the position of the property seller. Once a property is listed as for sale, the seller wants to attract as many potential buyers as possible to increase the chances of it selling quickly. They’ll not want to do anything that will jeopardize that action taking place. As they are fielding queries about that listing one of the most important things they’ll be asked is about the availability of the property? They’re only going to want to have to tell people it is under contract if they;re relatively sure of the buyer. And that is where the verification of funds letter comes into play.
A seller is not going to want to turn away interested parties unless they feel good about any offer they they may have accepted. One of the most important aspects of that is being assured that the buyer will have the money to complete the purchase. And that is where a proof of funds letter comes into play.
A seller wants something other than a promise and a smile from the buyer. A properly worded verification of funds letter will give the seller the confidence to put their property under contract.
When it comes to real estate investing, knowing how to properly word your proof of funds letters is crucial to gaining the sellers’ confidence and trust.
This type of POF differs from the kind you would get if you were trying to get a mortgage.