You have asked a simple question that likely should have a complex answer. However to keep it simple, Seller’s like to know they have a solid transaction. A broker’s livelihood comes from closed transactions. They usually always try to avoid false starts that will damage their reputation as well as their income.
Sometimes, with the best of intentions “to lure in a partner” is not as easy as it sounds. If a partner is going to have enough confidence to give you the initiating partner his or her money, they want to know that you can indeed deliver the property. If not, they will give their confidence and their money to someone that can get the job done.
You should simply work the system until you have a property and investor/s/ that will allow you to match up the property and all your good intentions with the investors. Otherwise, don’t waste the time of sellers and brokers.
For strong investors that can provide credentials and a background of successful deals, the seller will usually forego the proof of funds until the deal points have been agreed upon, but even with this type of quality investor the seller wants to see the assurance of a close of escrow through a bank letter or a large enough forfeitable deposit for a false start.
Good luck with your pursuit of the highly leveraged deal. As was said by one of our past presidents, “I feel your pain”.
Onward and upward Eric…… Rob Baird, CA RE License #544165 (One of the oldest, active licenses in CA) 951 515-5855 Email: firstname.lastname@example.org
Apr 12, 2011