Pre-Approval Letters Don't Matter

As I read a lot of posts on this site I see a lot of people saying they can't work with a realtor because they can't get a pre-approval letter from their bank due to their job or bad credit. Not having a pre-approval letter in the beginning was one of the first obstacles that I ran into. In fact the first agent I tried to work with said before he showed me any properties I would have to have a pre-approval letter. Now if I had listened to him (probably a lot like you guys) I would not be financially free, I would be writing posts on DG.com and I wouldn't be changing lives. So, learning from my mistakes, and being pretty mad at him I decided to find another real estate agent. The next agent I met asked me if I was pre-approved and this is what I said. "I haven't decided which bank I want to work with yet, I am still checking around, but I am going to buy a lot of property and we need to get started." I said it with confidence and all of a sudden it wasn't a priority. The second thing about a pre-approval letter is that the seller's real estate agent will want to see it when an offer is presented. SO you will need one when you submit an offer. Now the important thing to remember is that I have only been pre-approved for one house out of over 30 that I have bought! I was always told that if the deal is good enough the money will follow. What I did is just "white out" the date on my one pre-approval letter and just keep submiting offers with that one letter (I used that one letter for over 2 years and submitted hundreds and hundreds of offers with it.) The funny thing about it this. The bank that the letter was from only got ONE phone call in TWO years to verify the pre-approval! Out of hundreds of offers!!! Here is another thing, I didn't even use that bank to finance my deals after the third property I bought!

Here is another trick I used. When I started wanting to submit cash offers I didn't think you would need a pre-approval letter because it was cash. Well, then the sellers agent wants to see a proof of funds letter from your bank. Here is what I did since I didn't have cash in the bank. I called a friend of mine who had cash in the bank and asked him if he would have his bank give him a letter stating how much cash he had in the bank. So he gave me this letter and I just submitted that with my cash offers. Now, this letter does not have my name on it or my corporations name on it! I have submitted this letter for all cash offers hundreds of times and only twice has a sellers agent called my agent and said "hey this letter doesn't state that your buyer has cash"! So any time the sellers agent notices that, I just forget about that offer and focus on the other offers I have submitted. Listen, don't get hung up on these small details and obstacles you will run in to. IT DOES NOT MATTER! Go out there and get it done it's worth it!