Documents and Forms
REO DIRECT SOURCE
Demonstrate and Safe Guard "Proof of Funds" Information
Bank or Line of Credit Statement: before submitting a bank statement, black out the account number, however the investor/buyer's name must be seen on the document. The investor/buyer's name on the bank statement must match the name on the Purchase Order Request form. A minimum investment dollar amount should be reflected on the statement.
Escrow Account: Place the minimum dollar amount into an escrow account, which makes this a simple step to verify funds on your behalf. We use a disinterested 3rd party escrow service for most transactions.
Bank Proof of Funds Letter: You may use any official bank document from your bank to authenticate you are qualified to do this transaction. A bank officer can draft a letter on your behalf on their official letterhead confirming the current funds in your account. The letter must include the direct contact name and number of the bank officer who provided the letter. We will contact the bank officer to verify that they drafted the letter on your behalf and the dollar amount of funds available. The account must match the name on the Purchase Order Request form.
Proof of Funds Letter – other financial institutions: A letter from your private lending source or any other document that substantiates that you have funds to complete a transaction. We will verify the letter, prior to accepting it as a POF document.
Bank or Line of Credit Statement: before submitting a bank statement, black out the account number, however the investor/buyer's name must be seen on the document. The investor/buyer's name on the bank statement must match the name on the Purchase Order Request form. A minimum investment dollar amount should be reflected on the statement.
Escrow Account: Place the minimum dollar amount into an escrow account, which makes this a simple step to verify funds on your behalf. We use a disinterested 3rd party escrow service for most transactions.
Bank Proof of Funds Letter: You may use any official bank document from your bank to authenticate you are qualified to do this transaction. A bank officer can draft a letter on your behalf on their official letterhead confirming the current funds in your account. The letter must include the direct contact name and number of the bank officer who provided the letter. We will contact the bank officer to verify that they drafted the letter on your behalf and the dollar amount of funds available. The account must match the name on the Purchase Order Request form.
Proof of Funds Letter – other financial institutions: A letter from your private lending source or any other document that substantiates that you have funds to complete a transaction. We will verify the letter, prior to accepting it as a POF document.
NOTE: When a transaction is in progress, a bank/ asset manager will request you to send them verification of funds according to their standards.
An Industry Standard
We will not entertain requests to review lists of available properties until the buyer provides "Proof of Funds". The procedures and rules are established by the banks and other institutional sellers for disposal of their assets.
We will not entertain requests to review lists of available properties until the buyer provides "Proof of Funds". The procedures and rules are established by the banks and other institutional sellers for disposal of their assets.
"Buy Direct....from the Source"
Required Forms:
Purchase Order Request / LOI (Letter of Interest)
We have combined a purchase order and "LOI" form to include all the necessary information to help process the direct buyer's interest.
• Price range
• Geographic locations
• Quantity of properties desired
• Level of repairs (cosmetic, some rehab, no rehab, full rehab, etc)
• Miscellaneous information (elaborate on any information related to portfolio purchase)
Purchase Order Request / LOI (Letter of Interest)
We have combined a purchase order and "LOI" form to include all the necessary information to help process the direct buyer's interest.
• Price range
• Geographic locations
• Quantity of properties desired
• Level of repairs (cosmetic, some rehab, no rehab, full rehab, etc)
• Miscellaneous information (elaborate on any information related to portfolio purchase)
The Purchase Order Form helps buyers begin the process.
- Once the buyer supplies us with this form, we now have a place to start. We look in our inventory to fulfill the buyer's request.
- It also offers us the ability to continue to work on the buyer's behalf keeping a lookout for other REO Bulk properties that fit the buyer's property criteria.
Buyers should be prepared to demonstrate "Proof of Funds"
Proof of Funds ("POF")
Investors need to substantiate they have sufficient liquid funds to purchase portfolios.
This is an industry standard. In real estate, a home buyer demonstrates their ability to buy a home by being pre-approved for a mortgage loan. When buying REO bulk portfolios, mortgage financing is not available;
therefore a buyer must show proof of funds (liquid funds).
Proof of Funds ("POF")
Investors need to substantiate they have sufficient liquid funds to purchase portfolios.
This is an industry standard. In real estate, a home buyer demonstrates their ability to buy a home by being pre-approved for a mortgage loan. When buying REO bulk portfolios, mortgage financing is not available;
therefore a buyer must show proof of funds (liquid funds).
(Document)
Download this PDF
Download this PDF
