We multifamily syndicators have it tough: we're asked to make something happen without having all the resources (money and experience) ourselves.
So when a broker tells us “the seller will entertain your offer but only with proof of funds” we're stumped because we don't HAVE the funds because we're going to raise it and presumably have it all at closing. But not now.
So what do we do?
The first step is to push back on the broker and explain that we will be syndicating the deal. In my article “3 Ways to Handle Requests for Proof of Funds When You Don’t Have Any” I talk about how to do this in practical terms.
But sometimes it REALLY helps to have the proof of funds. It just makes your offer so much stronger and it increases your chances of getting under contract.
In that same article, I do talk about how to get the proof of funds from one of your investors, but I wanted to go a little deeper and show you step by step how you can do it.
By the way, I did what I'm about to describe a little while ago because I needed it for a larger deal I was going after. So I know it works and I know you can do it too.
The proof of funds letter is useful for larger multifamily deals as well as single family house deals. It's a key tool to getting deals under contract, so listen up -;)
To read the entire article on Bigger Pockets, click here.