The other night I had a one-on-one session with a client in Wealth School.  It didn’t take long to find out that he was hung up on financing.  He had stopped trying to buy cash flow properties 2 bankers told him he no longer qualified for financing. 

Yes, he purchased several properties in the past using bank financing.  I told him he needed to use the resources he had at his diposal.  Yes, although he may not currently qualify for bank financing, there are many ways types of financing that at his disposal that he could be utilizing. 

He told me he wanted to buy bank owned properties using a local hard money lender (Kruger Investment) to obtain the financing.  However, he has not been able to get Kruger to do a proof of funds letter to accompany offers that he might submit through his realtor. 

My suggestion to him was to concentrate on the deals that were within his reach.  For example, he could buy deals from wholesalers, and definitely use his hard money lender to fund those.  Wholesalers typically don’t need to have pre-approval letters like lenders do when submitting offers to lenders.  So, use the financing resources that you have at your disposal. 

Can you get financing from banks?  Great.  If not, don’t let that shut down your buying.  Use the resources at your disposal.