Speed and certainty win deals. When you submit an offer, sellers and listing agents want to know one thing: Can you really close?
That’s where a proof of funds (POF) letter comes in. A POF is a simple, lender-issued document confirming you have the money available to complete a transaction. For real estate investors, it’s often the difference between an accepted offer and a missed opportunity.
Think of it as your credibility card. Without one, your offer looks shaky. With one, you look like a serious buyer—even if you’re using a hard money loan to fund the deal.
What Is a Proof of Funds Letter?
A proof of funds letter is an official document that verifies:
- The amount of funds available for your purchase
- The source of those funds (bank account, private lender, or hard money lender)
- A statement that the funds are liquid and ready to close
For investors using hard money loans, the lender issues the letter confirming they’re prepared to fund your deal—usually within a short timeframe (5–7 business days).
Why Investors in California Need a POF
- Competitive Market
In hot areas like Los Angeles, San Diego, or the Bay Area, multiple-offer situations are the norm. A POF letter makes your offer stand out. - Auctions and Off-Market Deals
Auction properties and wholesale contracts often require immediate proof of financing. Without a POF, you may not even get in the game. - Bank Alternative
Many investment properties—fix-and-flips, distressed homes, mixed-use projects—don’t qualify for traditional financing. A hard money POF letter shows you have a private funding source ready. - Confidence for Brokers and Sellers
When you show proof of funds, agents are more likely to prioritize your offer, and sellers feel safer accepting it.
What’s Inside a Real Estate Investor POF
A typical real estate investor proof of funds letter includes:
- Borrower/investor name or entity
- Loan amount or available funds
- Property address (if applicable)
- Statement of lender’s intent to fund
- Date of issuance (fresh letters carry more weight)
- Lender’s contact info
Some private lenders also include loan terms (LTV, max amount), but the focus is on readiness to fund.
How to Get a Proof of Funds Letter Fast
Step 1: Work With a Private Lender
Establish a relationship with a hard money lender like Lending Bee. They’ll review your deal parameters and provide a POF based on your target purchase range.
Step 2: Submit Basic Deal Info
Provide:
- Purchase price range
- Property type (single-family, multifamily, commercial)
- Estimated down payment / equity
Step 3: Receive Your POF Letter
Most private lenders can issue a POF same day. Some, like Lending Bee, provide co-branded or customized letters for brokers and wholesalers.
Example: How a POF Wins Deals
📍 Los Angeles, CA
An investor spotted a distressed triplex listed below market. Multiple offers poured in. By submitting an offer with a Lending Bee proof of funds letter, they signaled speed and certainty.
The seller accepted their offer over a higher competing bid because the buyer’s financing looked rock-solid. Without the POF, the investor would have lost the deal.
FAQs About Proof of Funds Letters
Q: Can I use the same POF for multiple offers?
Yes, but keep it fresh. Most agents want letters dated within the last 30 days.
Q: Do I need cash in my account for a POF?
If you’re using a hard money loan, the lender issues the letter based on their commitment—not just your cash balance.
Q: Is a bank statement the same as a POF?
Not exactly. While a bank statement shows funds, a hard money POF letter carries more weight because it’s tied to a lender’s commitment to fund.
Why Choose Lending Bee for Proof of Funds
At Lending Bee, we make it simple for California investors to compete:
- Same-day POF letters—so you can submit offers quickly
- Customizable letters for brokers and wholesalers
- Fast closings (5–7 days) to back up the proof with real execution
- California expertise—we know the local markets and timelines
With us, your POF isn’t just a piece of paper—it’s a promise that you can actually close.
Final Thoughts
In California’s competitive real estate market, a proof of funds letter is no longer optional—it’s essential. Sellers want certainty, and agents want serious buyers. By securing a hard money proof of funds letter, you position yourself as both.
Whether you’re a new investor submitting your first offer or a seasoned buyer chasing your next big deal, don’t go in without your POF in hand. Reach out to learn more.