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Yes the money would be coming from my company so I have assumed that a letterhead with a statement that the company has the funds to cover the stated amount should suffice. However I have run into some real estate agents who require something from a financial institution and I am not willing to do that! Some have told me I could have the cash held in a trust fund located in an attorneys account. I do not trust that either. I thought cash was KING and I am finding out the opposite. Quite an experience I will tell you that!
I asked my real estate agent the other day the following question.
"What if I go to the bank that holds the mortgage and show them the cash as I make my offer" He looked at me like I had lost my mind! I thought cash was a good thing. Apparently it isn't so when it comes to real estate deals!
I even asked if this strategy might work. I deposit a large amount of escrow when I make my offer and if after the offer is accepted and I do not close the deal I lose a very large amount of money. NOPE he said that would not work either. I just dont get it?
Cash is king. The promise of cash with no proof is not.
Yes the money would be coming from my company so I have assumed that a letterhead with a statement that the company has the funds to cover the stated amount should suffice. However I have run into some real estate agents who require something from a financial institution and I am not willing to do that! Some have told me I could have the cash held in a trust fund located in an attorneys account. I do not trust that either. I thought cash was KING and I am finding out the opposite. Quite an experience I will tell you that!
I asked my real estate agent the other day the following question.
"What if I go to the bank that holds the mortgage and show them the cash as I make my offer" He looked at me like I had lost my mind! I thought cash was a good thing. Apparently it isn't so when it comes to real estate deals!
I even asked if this strategy might work. I deposit a large amount of escrow when I make my offer and if after the offer is accepted and I do not close the deal I lose a very large amount of money. NOPE he said that would not work either. I just dont get it?
Serious, non-snarky question: where exactly is the money you'd use to purchase this property? You say it's held by your company - but physically where? In a safe? In a mattress? Buried in a Folger's coffee can out back?
Don't blame the agents - POF letters are requirements in most REO cash transactions.
As for writing a letter on company letterhead, I could write a letter on my brokerage letterhead saying that I've been promoted to Princess Unicorn and will be heading up the Horn Will Pierce The Sky Division ... and that could or could not be true.
Cash IS king. When you can prove that you have it, that is.
Money is available as long as the banks are open and I can get to my safety deposit box! I understand that telling someone you have money doesnt mean squat but when I can physically put my hands on it and into the banks the same day whats the big problem.
I would think that with a large escrow amount deposited and with the premise that if I do not buy upon bank approval of my offer I forfeit said funds there should not be a problem? How does the bank lose in that scenario?
As a seller I would be a bit suspicious. Why would a company (or an individual) keep large amounts of cash in a safety deposit box?
Why would you be suspicious? I own a legitimate company and the cash I get from the services I provide I prefer to keep private. Of course when I want to buy something as big as a home I see that I run into this problem. I know quite a few people who have very large amounts of cash that they stupidly keep in their homes in safes. They are also legitimate business owners.
Just because one stays away from crooked banks doesn't make themselves crooked. Does it?
People are generally wary of when something goes against the norm. Just the way it works. Honestly my first reaction is it sounds like you are trying to hide money from the IRS.
Now I am not saying that is indeed what you are doing. Just trying to give you a different perspective on how others may view your situation.
My suggestion would be to put the money into a checking account that you can use to show proof of funds. However, given your distrust of banks, you probably will not like this idea. Just keep in mind it's a temporary situation as the cash will soon transfer out for the home purchase.
Why would you be suspicious? I own a legitimate company and the cash I get from the services I provide I prefer to keep private. Of course when I want to buy something as big as a home I see that I run into this problem. I know quite a few people who have very large amounts of cash that they stupidly keep in their homes in safes. They are also legitimate business owners.
Just because one stays away from crooked banks doesn't make themselves crooked. Does it?
if you don't trust banks, why would you keep the money in their safe deposit box? FDIC insurance protects you against bank insolvency, theft etc. if you have more money then can be protected by the insurance limit, just open another account at another bank.
keeping large amounts of cash in a safe deposit box or under a matresss, is a red flag that someone is likely trying to hide unreported income, and that's why it makes people suspicious.
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