The past few weeks to more than a month have been a very stressful time.
I've know about a property that is "Off Market," yet "For Sale" according to the Owner.
BUT, when I approach the Owner about selling, he continually reminds me that he needs "Proof of Funds" (POF) so he knows whether or not the Buyer is capable of closing on the purchase of his property.
Now, this isn't just an everyday house sale. This isn't an everyday commercial building, or apartment property in the several hundreds of thousand dollar sale.
This is a property worth +/-$25 Million.
A couple of weeks ago, I present the property to a national credit buyer and they said they'd get back to me.
OK, they need time to mull it over. I get it.
I gave the usual spiel, blah, blah blah, Proof of Funds, etc.
Well, I just fond out that this one particular buyer has decided to pass on the property.
Everything about it fit the Buyers Acquisition Criteria -- except the Proof of Funds!
Now, this company owns about 100 properties nationwide.
They buy, develop and hold long term all of their acquisitions. No flipping for them.
Well, I just had to know the real reason why they decided to pass. So, I gave my contact a call.
Boy, did I get an ear full.
Apparently, the experienced buyer for this company has heard this phrase: Proof of Funds more than he wants to count.
He has come to learn that when he hears this phrase, the owner truly doesn't want to sell.
In his 30 years as a Property Buyer for this and other National Multi-Family Companies, when he is told to provide Proof of Funds, it tells him one of two things:
1.) The Seller is inexperienced
2.) The Seller doesn't truly want to sell
When I spoke to the Buyer today, he was leaning more to number 2 on this property.
In his experience, once that phrase is uttered, he turns his focus on other potential acquisitions.
I don't blame him.
If an owner is being so tight about POF, the Buyer knows it will be extremely difficult to get a property into escrow; and even more difficult to close escrow.
So, I learned something new today. I never knew that, that phrase was the Seller's way of stating, "I don't want to sell!" Why don't Sellers just say, I'm NOT selling?
All I can say is: "Lesson learned."
To Contact David Howes try: davidATdavidhowesDOTnet OR; 7 0 2 5 01 9 3 8 8 AND Please #Follow David on Twitter: @DavidAHowes Have a nice day!
I've know about a property that is "Off Market," yet "For Sale" according to the Owner.
BUT, when I approach the Owner about selling, he continually reminds me that he needs "Proof of Funds" (POF) so he knows whether or not the Buyer is capable of closing on the purchase of his property.
Now, this isn't just an everyday house sale. This isn't an everyday commercial building, or apartment property in the several hundreds of thousand dollar sale.
This is a property worth +/-$25 Million.
A couple of weeks ago, I present the property to a national credit buyer and they said they'd get back to me.
OK, they need time to mull it over. I get it.
I gave the usual spiel, blah, blah blah, Proof of Funds, etc.
Everything about it fit the Buyers Acquisition Criteria -- except the Proof of Funds!
Now, this company owns about 100 properties nationwide.
They buy, develop and hold long term all of their acquisitions. No flipping for them.
Well, I just had to know the real reason why they decided to pass. So, I gave my contact a call.
Boy, did I get an ear full.
Apparently, the experienced buyer for this company has heard this phrase: Proof of Funds more than he wants to count.
He has come to learn that when he hears this phrase, the owner truly doesn't want to sell.
In his 30 years as a Property Buyer for this and other National Multi-Family Companies, when he is told to provide Proof of Funds, it tells him one of two things:
1.) The Seller is inexperienced
2.) The Seller doesn't truly want to sell
When I spoke to the Buyer today, he was leaning more to number 2 on this property.
In his experience, once that phrase is uttered, he turns his focus on other potential acquisitions.
I don't blame him.
If an owner is being so tight about POF, the Buyer knows it will be extremely difficult to get a property into escrow; and even more difficult to close escrow.
So, I learned something new today. I never knew that, that phrase was the Seller's way of stating, "I don't want to sell!" Why don't Sellers just say, I'm NOT selling?
All I can say is: "Lesson learned."
To Contact David Howes try: davidATdavidhowesDOTnet OR; 7 0 2 5 01 9 3 8 8 AND Please #Follow David on Twitter: @DavidAHowes Have a nice day!
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