Requesting Proof of Funds

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seashanty

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it must be so stressful for everyone!
i've been looking at buying a property with a friend recently (correction, he is buying a property, i'm just along for the ride) and the very first thing he is being asked before anyone will show him the house is 'how much are you pre-qualified for' and this is for residential, not a b&b. not only pre-qualified but pre-approved. he carries around his pre-approval letters as the realtors and private sellers are asking for copies.
 

Copperhead

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I am so exhausted from dealing with my realtor that I've drafted a letter (not sent yet) terminating our contract. Selling your home and your business is stressful enough, but I am finding myself more upset with the realtor's actions, or lack thereof, than anything else. I am basically holding her hand through this process - finding disclosure statements on line for her to supply buyers with (because their office has never used one!), repeating to her that I need pre-qualified parties before I release info (seriously have told her this at LEAST four times), and now she's questioning why I need these things, because well "No other business transaction that I've handled have ever requested these things". WTH?!?! This person is one of the top three realtors in the city. And their office is very well known. It's crazy scary how informal things are done around here.

I'm at my wit's end. I am a bit worried about scaring off the one prospective buyer that booked a couple of rooms for next week, but I can't keep dealing with this realtor. My plan is to phone her after firing the realtor and to let her know that I am no longer represented. I know there is a 30 day waiting period before I can sell to her without having to pay the realtor the commission, but I'm more worried about making her nervous and scaring her off.

Edited: The buyer that said he had cash and was told I needed a notarized statement from his bank stating same will not provide a letter as he claims his funds are tied up in stocks and bonds. So be it. Adios..
As we are putting together our 5 year exit plan, one of the questions I have had is whether there is any value in working with a national seller that specializes in inns and B&Bs. Did you do any looking at this concept before you went in the direction you went? I have found that there are a couple of on island realtors that work in niche markets. Do you think your area has anyone like that? I need to educate myself about this. Any thoughts you have would be appreciated.
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I spent a little time looking at national B&B brokers or consultants, but I guess I was trying to be quick and cheap about it. There are no local realtors here that specialize in niche markets, and apparently there are none that specialize in commercial transactions! My thought when going with local (and someone I thought knew how to handle business sales) was that I wouldn't have to deal with the curious and the dreamers. I thought she would screen them for me and when told what I needed, be able to do it. She is not.

I'm not real sure what my next step is, so I haven't thought much about going back to a national broker/consultant. I think you are smart to consider it.
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Did you find a national concept was more expensive?
Our location impacts us- being in the big blue. That's what got me thinking about a hybrid type niche realtor who would know how to handle the business sale as well as have a semi-local presence. It makes me wonder who amongst us actually used a national type to buy a property? We definitely don't want to end up being somebody's tax write off for a trip to pair o dice.
On a different note: We did sell our previous house on our own and it worked out fine. I often think I might actually be able to put us out there in a way that perhaps only an innkeeper or an broker who knows inn-keeping could do and then invite buyer reps to their half of the commission, perhaps with them handling the paperwork. HA! It sounds so easy when you talk about it. It is obviously much tougher when you are in the middle of it. I'm sure you'll find the right direction. Did I miss what happened to the first person? Are they still interested? Are you firing before that plays out?
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We went with local business brokers in every state we looked in. Hospitality brokers where they were available, which was just about everywhere.
The ONE Realtor we worked with was annoying beyond belief. She had one b&b for sale but kept trying to drag us to see houses with 4 bedrooms that we could convert. Never even getting the point we tried to make that we wanted a business that was running, we could convert the house we owned, which WAS a b&b if that's what we wanted!
Even having a business broker, a lawyer and an accountant, stuff was missed. Including transfer of the website.
When we sell, we'll hire a local broker. It's a chunk of change, yes, but we'll be paying them to weed out the lookie lous. It's hard enough working this job without having to stop for someone who isn't even close to bring qualified.
I remember trying to sell my house and my kids were in college, no one making a mess or anything, but always having to be sure all my personal stuff was put away, everything clean, before I went to work each day.
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Forgive my ignorance- business broker? local broker? real estate broker? hospitality broker? I have to get myself an education on these differences.
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happykeeper said:
Forgive my ignorance- business broker? local broker? real estate broker? hospitality broker? I have to get myself an education on these differences.
Around these parts... Business brokers help with the buying and selling of businesses and/or business properties. Hospitality brokers help with the buying and selling of strictly hospitality properties.
Local brokers of either sort actually live in the area so they know the bankers/lawyers/town officials and can grease the wheels if need be.
Real estate brokers are usually Realtors who usually sell homes, not businesses.
Some Realtors wear multiple hats gracefully. Others, like banana's, do not.
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Madeleine said:
happykeeper said:
Forgive my ignorance- business broker? local broker? real estate broker? hospitality broker? I have to get myself an education on these differences.
Around these parts... Business brokers help with the buying and selling of businesses and/or business properties. Hospitality brokers help with the buying and selling of strictly hospitality properties.
Local brokers of either sort actually live in the area so they know the bankers/lawyers/town officials and can grease the wheels if need be.
Real estate brokers are usually Realtors who usually sell homes, not businesses.
Some Realtors wear multiple hats gracefully. Others, like banana's, do not.
Real Estate Brokers are usually owners of a Real Estate Co. and have Real Estate Agents (aka Realtors) working for them. The % of the fee is usually split (in some fashion) between the Broker & the Agent.

Banana, is your agent the broker of the company? If not, maybe you should contact the broker prior to sending the email. Ask the broker if he/she has been asked to assist this agent with your business listing. Tell the broker your problem. If the broker gives you the run around as well, then it is time to move on.
What about the big city to your north? I am sure there are good business agents there that would be happy to assist you, and they will know and understand just what you are requesting.
Let that cash sale guy go about his marry way. If he was really interested in your property and he really had the funds as he says he would be quickly providing your agent with the requested documents.
 

EmptyNest

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it must be so stressful for everyone!
i've been looking at buying a property with a friend recently (correction, he is buying a property, i'm just along for the ride) and the very first thing he is being asked before anyone will show him the house is 'how much are you pre-qualified for' and this is for residential, not a b&b. not only pre-qualified but pre-approved. he carries around his pre-approval letters as the realtors and private sellers are asking for copies..
Yes and Yes. If you don't...as banana says...nothing but looky loos who have a fantasy but when it comes right down to it...SHOW ME THE MONEY! And I'll show you what I have :)
 

JBloggs

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it must be so stressful for everyone!
i've been looking at buying a property with a friend recently (correction, he is buying a property, i'm just along for the ride) and the very first thing he is being asked before anyone will show him the house is 'how much are you pre-qualified for' and this is for residential, not a b&b. not only pre-qualified but pre-approved. he carries around his pre-approval letters as the realtors and private sellers are asking for copies..
Yes and Yes. If you don't...as banana says...nothing but looky loos who have a fantasy but when it comes right down to it...SHOW ME THE MONEY! And I'll show you what I have :)
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"We are serious buyers"
in 5 years time.
It is what it is. As mentioned if someone falls in love with it they may do whatever it takes to acquire their dream now. Many of us did this.
 

happykeeper

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it must be so stressful for everyone!
i've been looking at buying a property with a friend recently (correction, he is buying a property, i'm just along for the ride) and the very first thing he is being asked before anyone will show him the house is 'how much are you pre-qualified for' and this is for residential, not a b&b. not only pre-qualified but pre-approved. he carries around his pre-approval letters as the realtors and private sellers are asking for copies..
Yes and Yes. If you don't...as banana says...nothing but looky loos who have a fantasy but when it comes right down to it...SHOW ME THE MONEY! And I'll show you what I have :)
.
"We are serious buyers"
in 5 years time.
It is what it is. As mentioned if someone falls in love with it they may do whatever it takes to acquire their dream now. Many of us did this.
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Whatever it takes? That should include being up front about their financials, even if they are a stitch short of sewing up a deal. It would drive me crazy to have a realtor bring a lookie lou without honoring a basic request to get their financials.
Of course, every situation is different and each owner has to decide for themselves, but I would struggle with the emotions of having a non-buying Snoop Dog sniffing around our place.
 

Skamokawa

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it must be so stressful for everyone!
i've been looking at buying a property with a friend recently (correction, he is buying a property, i'm just along for the ride) and the very first thing he is being asked before anyone will show him the house is 'how much are you pre-qualified for' and this is for residential, not a b&b. not only pre-qualified but pre-approved. he carries around his pre-approval letters as the realtors and private sellers are asking for copies..
Yes and Yes. If you don't...as banana says...nothing but looky loos who have a fantasy but when it comes right down to it...SHOW ME THE MONEY! And I'll show you what I have :)
.
"We are serious buyers"
in 5 years time.
It is what it is. As mentioned if someone falls in love with it they may do whatever it takes to acquire their dream now. Many of us did this.
.
The first place we seriously looked at, we just couldn't get a financing package together that I was comfortable with. The sellers got to the point of "Make us any offer", but even at that point, it wasn't just acquiring the place, it was the renovation costs that we just couldn't make work in a realistic way (as in: in this lifetime). It did eventually sell, and the new owners were operating it with a new website, the renovations had begun, but one night the place went up in flames. No one hurt, but absolute loss. The building had been a hotel since before the Olympic National Park was made a Nat'l Park. (in a small town nearby). So sad to see these old places go. Five years later, we were so much more ready, and the right place did present itself. Still another 8 years before it could be opened though. And 5 years ago completely paid off.
p.s. We installed sprinklers.
 

BananaE29

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it must be so stressful for everyone!
i've been looking at buying a property with a friend recently (correction, he is buying a property, i'm just along for the ride) and the very first thing he is being asked before anyone will show him the house is 'how much are you pre-qualified for' and this is for residential, not a b&b. not only pre-qualified but pre-approved. he carries around his pre-approval letters as the realtors and private sellers are asking for copies..
Yes and Yes. If you don't...as banana says...nothing but looky loos who have a fantasy but when it comes right down to it...SHOW ME THE MONEY! And I'll show you what I have :)
.
"We are serious buyers"
in 5 years time.
It is what it is. As mentioned if someone falls in love with it they may do whatever it takes to acquire their dream now. Many of us did this.
.
The first place we seriously looked at, we just couldn't get a financing package together that I was comfortable with. The sellers got to the point of "Make us any offer", but even at that point, it wasn't just acquiring the place, it was the renovation costs that we just couldn't make work in a realistic way (as in: in this lifetime). It did eventually sell, and the new owners were operating it with a new website, the renovations had begun, but one night the place went up in flames. No one hurt, but absolute loss. The building had been a hotel since before the Olympic National Park was made a Nat'l Park. (in a small town nearby). So sad to see these old places go. Five years later, we were so much more ready, and the right place did present itself. Still another 8 years before it could be opened though. And 5 years ago completely paid off.
p.s. We installed sprinklers.
.
Oh my gosh, that is so heart breaking. I cannot imagine. :(
 

BananaE29

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I shouldn't curse it by sharing so soon, but I have to share that I have an offer on my inn :) I'll keep y'all updated. Thank you for all the advice and positive ju ju the last several months.
 

toddburme

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Most recent bank statement, brokerage statement will do. Be aware that most people don't have this type of money laying around in a savings account so you might get more then one statement as they would have to close out investments and pool up the funds.
 

Madeleine

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I shouldn't curse it by sharing so soon, but I have to share that I have an offer on my inn :) I'll keep y'all updated. Thank you for all the advice and positive ju ju the last several months.
.
:)
 

Copperhead

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I shouldn't curse it by sharing so soon, but I have to share that I have an offer on my inn :) I'll keep y'all updated. Thank you for all the advice and positive ju ju the last several months.
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BananaE29 said:
I shouldn't curse it by sharing so soon, but I have to share that I have an offer on my inn :) I'll keep y'all updated. Thank you for all the advice and positive ju ju the last several months.
keeping fingers and toes crossed.
 

gillumhouse

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I shouldn't curse it by sharing so soon, but I have to share that I have an offer on my inn :) I'll keep y'all updated. Thank you for all the advice and positive ju ju the last several months.
.
If it can be crossed, I crossed it.
 

BananaE29

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I now have a contract on the inn, after a little negotiation. I won't relax until after the inspection, but this feels right. So nervous. So scared. So excited!
 

EmptyNest

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I now have a contract on the inn, after a little negotiation. I won't relax until after the inspection, but this feels right. So nervous. So scared. So excited!.
WOW..wonderful! Hope you got close to what you wanted :)
 

Silverspoon

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I now have a contract on the inn, after a little negotiation. I won't relax until after the inspection, but this feels right. So nervous. So scared. So excited!.
Fabulous news! Keep us posted.

 

egoodell

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Good for you! Was it the one that came with their family or the one that would not submit financials??
 

Copperhead

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Continuing with the fingers and toes crossed.

Great news! Great! Great!
 

BananaE29

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Good for you! Was it the one that came with their family or the one that would not submit financials??.
egoodell said:
Good for you! Was it the one that came with their family or the one that would not submit financials??
Actually, it was neither. The family one was more interested in a lease (gaaaa! NO!) and the other - well...their loss!
 
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