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My asset managers can protect themselves and their clients and I am now just submitting these offers without asking for proof of funds from the lender. My initial inclination is that the lender SHOULD provide SOMETHING that shows their ability to lend.
The other problems with the latest offers is that the investor "buyers" make offers sight unseen even though they live in the general NE OHIO area. The agents make no effort to even preview the properties even though they are vacant on lockbox and easily set up online.
Then they want 10 days for contractor inspection upon which the earnest money will be paid. So it's really ZERO earnest money.
I've had one investor seeming to shop agents but not me. He's made offers on 2 of my listings through agents from 2 different companies. Both properties are overpriced and the offers were still very high for an investor flip.
In the past, these buyers already have CASH approved by the hard money source and it is set aside for either a particular property or any property.
1. Any idea why these hard money sources are now specifically calling these preapproved loans?
2. Should this kind of lender provide proof of ability to lend and the specific criteria for the loan other than subject to contractor inspection and POS? We already know and can see the defects.
3. Are any of your asset managers asking what the loan criteria are? I had one that asked but the negotiations died before we got that far.
3. What are your experiences along these lines?