Are you crunching the numbers before making an Offer? If you’re crunching the numbers, making consistent offers that are at your MAO (maximum allowed offer), and you’re coming up bust, you may be making the #1 mistake with your Proof of Funds Letter.

But before I tell you what the #1 mistake is, let’s talk about REJECTION. Having your offer rejected is common.

In fact, if your offers aren’t getting declined consistently, you aren’t making enough offers!

Remember how we talked about making an offer on every single place you look at? (READ MORE HERE!) Even if your offers are strong, you’re still going to have some dismissed.

It’s a numbers game, and it’s all a part of real estate investing.

First, look at how many offers you are making every week. Is it enough to sway the numbers in your favor?

Good. Now, why aren’t you having more of your offers accepted?

You can greatly increase your chances of having your offers accepted or countered with one little thing, and I guarantee you aren’t all doing it.

The #1 mistake people make with a Proof of Funds letter is not using one!

The seller wants to know if you have:

  • Cash
  • Financing

If you don’t have a briefcase full of cash to hand over (okay, that’s not how it works, but it might as well be for the majority who don’t have the funds), then showing that you have financing is your next best level of support to your offer. But you don’t get financing first, you find the deal first. (READ HERE FOR MORE.)

Catch 22?


The bridge between having proof of the funds before you have the funds (because you have to find the deal first) is the Proof of Funds letter. It’s an easy solution, and thousands of people use it to support their offers and gain traction in acquiring more houses.

What is it?

Before an agent agrees to work with you, they often require a Proof of Funds letters. And many times, a Proof of Funds letter is required along with a purchase offer contract in real estate transactions.

In short, a Proof of Funds letter gives you, the investor, verification to provide to the seller of a property that you have the funds available and ready to use toward the purchase. You can provide this letter to the necessary parties involved in your real estate transactions, proving that you have access to the funds to buy the property.

Why does it matter?

Some buyers will argue that a Proof of Funds is unnecessary or unimportant. Some (especially those doing well for themselves) may even see it as insulting.

Don’t take it personally. It’s a good business practice. It can set your offer above the others, make it more enticing for the seller, and give you a leg up on the competition.

This letter shows that you are capable of affording a large-scale purchase, such as a house. The document is relevant to the seller and anyone else involved in the deal. It’s easy to obtain and increases your chances of having an offer accepted.

If you have a proof of funds letter, use it. It’s an easy mistake to avoid!