Hard Money Lender Proof of Funds Letter
Hard Money Lender Proof of Funds Letter
If you need a Hard Money Lender Proof of Funds Letter to make offers on properties, please email us at the email address on top of this page or call us. We will get right back to you ASAP. These days many realtors will not allow you to make offers without a proof of funds letter. We will make things easier providing a Hard Money Lender proof of funds letter in your name or your companies name within 30 minutes of application (during normal business hours). We want you to make offers and get those properties under contract.
Your private lender proof of funds Letter will be personalized and signed by us in PDF format. It will have the amount that we are willing to lend you on there so the seller knows that you have the funds available to close the purchase loan in a timely manner. Once we issue the letter, you will be in our system. If the seller calls to verify we will let them know the funds are set aside for your transaction.
Being able to show proof to the seller will allow you to get more properties under contract in a timely manner. We will let the seller know that it is in his best interest to get the property under contract with you as we are awaiting the executed approved contract in order to start the loan process.
If you are not currently a borrower with HardMoneyMan.com LLC, there is a one-time $225 processing fee for the private lender proof of funds letter. However, once this fee is paid you are entitled to unlimited proof of funds requests. If for some reason you don’t get your first or second bid, we will be happy to continue issuing proof of fund letters as you continue your search for the perfect investment property. In addition, should you move forward with the project and choose to close a loan with us, the fee will be credited back to you on the HUD at closing.
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5 Essential Elements Your Hard Money Proof of Funds Letter Must Include
As a real estate investor, securing funding is an essential part of your business. And when it comes to hard money loans, proof of funds is a must-have document. A hard money proof of funds letter is a document that shows that you have the necessary funds to complete a real estate transaction. It is a vital tool that can help you secure funding quickly and efficiently. However, not all proof of funds letters are created equal. To ensure that your hard money proof of funds letter is effective, there are five essential elements that it must include. In this article, we will explore these five elements, discuss why they are important, and provide tips on how to include them in your proof of funds letter. So, whether you are a seasoned real estate investor or just getting started, read on to learn how to create a winning hard money proof of funds letter.
Importance of having a hard money proof of funds letter
Before we dive into the essential elements of a hard money proof of funds letter, let’s talk about why it is
essential to have one in the first place. When you are seeking funding for a real estate transaction,
realtors and sellers want to know that you have the funds to complete the deal. A hard money proof of
funds letter is a document that shows that you have sufficient funds to complete the transaction. It is a
critical tool that can help you get a property under contract quickly and efficiently.
Additionally, a hard money proof of funds letter can help you stand out from other investors who may be
seeking funding for the same property. It shows that you are serious about the transaction and have the
financial means to complete it.
Essential elements of a hard money proof of funds letter
Now that we understand the importance of having a hard money proof of funds letter let’s dive into the
five essential elements that it must include.
1. Amount of funds available
The first and most crucial element of a hard money proof of funds letter is the amount of funds available. This should be clearly stated in the letter and should match the amount of funding that you are seeking.
The seller needs to know that you have the necessary funds to complete the transaction.
### 2. Property information
The second element of a hard money proof of funds letter is the property information. This includes the
name of the entity you are making the offer under and the property address. This information is
necessary to verify that the funds are available and accessible for this specific borrower and property.
### 3. Date of the letter
The third element of a hard money proof of funds letter is the date of the letter. This is important
because all sellers and realtors want to know that the funds are currently available. It is recommended
that the letter be dated no more than 30 days before the offer is made on this specific property and how
long the letter is valid for.
### 4. Contact information
The fourth element of a hard money proof of funds letter is contact information. This includes your name,
phone number, and email address as well as the name, phone number and email address for the lender.
This information is necessary for the listing realtor to contact you if they have any questions or need
additional information, or just verify the validity of the letter.
### 5. Signature
The fifth and final element of a hard money proof of funds letter is a signature. This is necessary to verify
that the information in the letter is accurate.
Document requirements for a hard money proof of funds letter
In addition to the essential elements, there are some document requirements that must be met for a
hard money proof of funds letter to be considered valid. These requirements include:
### 1. Borrowers Application for a hard money loan
This is an essential part of a hard money proof of funds letter as all lenders will need to know who the
letter is for, the property and the numbers on the deal they are issuing the hard money proof of funds
letter for.
### 2. Letterhead
The letterhead is the top section of the letter that includes the name of the financial institution where the
funds are held. It is an essential part of the hard money proof of funds letter and should be included.
Sample hard money proof of funds letter
To help you understand what a hard money proof of funds letter should look like, check out the sample letter on the side of the page.
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Common mistakes to avoid when creating a hard money proof of funds letter
While creating a hard money proof of funds letter is a relatively simple process, there are some common
mistakes that you should avoid. These mistakes include:
### 1. Inaccurate information
One of the most common mistakes when creating a hard money proof of funds letter is including
inaccurate information. It is essential to ensure that all information in the letter is accurate and
up-to-date.
### 2. Missing essential elements
Another common mistake is missing essential elements from the letter. As discussed earlier, a hard
money proof of funds letter must include certain elements to be considered valid.
### 3. Incorrect formatting
Finally, incorrect formatting can make the letter difficult to read and may lead to confusion. It is
important to ensure that the letter is formatted correctly and is easy to read.
How to use your hard money proof of funds letter
effectively
Now that you have created a hard money proof of funds letter, how do you use it effectively? Here are
some tips:
### 1. Send it with your offer to purchase the house
Include your hard money proof of funds letter with your offer to purchase the house to show the realtor
as well as the seller that you have the necessary funds to complete the transaction.
### 2. Use it to negotiate on several deals at one time
Your hard money proof of funds letter can be used to negotiate multiple offers if you ask your lender not
to put a specific property address on the letter.
### 3. Keep it up-to-date
Remember to keep your hard money proof of funds letter up-to-date. It is recommended that the letter
be dated no more than 30 days before the transaction.
Where to obtain a hard money proof of funds letter
If you are unsure how to create a hard money proof of funds letter, there are many resources available
online but most investors use their go to lender – HardMoneyMan.com LLC.
Conclusion
In conclusion, a hard money proof of funds letter is a critical tool for real estate investors seeking funding
for a transaction. It shows that you have the necessary funds to complete the deal and can help you
negotiate better terms with sellers. When creating a hard money proof of funds letter, it is essential to
include the five essential elements and meet the document requirements. By following the tips outlined
in this article, you can create a winning hard money proof of funds letter and secure that next deal
quickly!