Proof of Funds, Earnest Money and Assignment Clauses, the Questions to Ask a Denver Cash Buyer
Two cash offers sit on your kitchen counter, and the prices are close. One buyer will put down a big deposit, and the other won't say how much. One contract is the state form, and the other is three pages you've never seen before. Which one is safer? A search for proof of funds earnest money assignment clause cash home buyer Denver usually starts right here.
Those three items tell you more about a buyer than its price does. They show whether the buyer has the money, how much it stands to lose if it walks, and whether it's the one who will really close. Here's what to ask about each, with real terms from Denver companies.
Where LVN Real Estate Stands on These Questions
LVN Real Estate is a Denver cash buyer owned by Kyle Doney, an Air Force veteran by the company's account. It's carried an A+ BBB rating as an accredited business since August 2017, and the BBB shows it started in 2015. Its FAQ is plain about the model: "we make our living by taking the risk to buy the house with our own cash." It then repairs and resells the house or keeps it as a rental.
LVN doesn't publish an earnest money amount on its site, and it doesn't publish a promise about assignment either way. That doesn't mean anything is wrong. It means you should ask LVN the same three questions you'd ask anyone, and ask for the answers in the contract.
Proof of Funds
A cash buyer should be able to show it has the cash. Proof of funds is usually a recent bank or account statement, or a letter from a bank, showing money on hand. The Buy-Out Company says it buys with cash and no contingencies, and it offers proof of funds on request.
Cash 4 Denver Homes puts it in capital letters: "WE ARE A TRUE CASH BUYER." It adds, "NO PRIVATE, PUBLIC, OR HARD MONEY FINANCING." That's a clear line. A buyer who needs a hard money loan to close isn't paying cash in the way you might think, and if that lender backs out late, your closing date goes with it.
When you get proof of funds, check one thing above all. Does the name on the statement match the name on the contract? If the contract lists one company and the money sits with another person or firm, ask why.
Earnest Money
Earnest money is the deposit a buyer puts down after you both sign. If the buyer walks away without a reason the contract allows, the deposit may go to you. So the bigger it is, the more the buyer has at stake.
No Colorado law sets a figure, and Denver buyers vary a lot. The Buy-Out Company lists "$10,000 Earnest Money" on its homepage. Its FAQ goes further and tells sellers, "A legitimate cash buyer who intends to close will have no problem putting up 5-10% as earnest money." Cash 4 Denver Homes says its deposit is "TYPICALLY 1-2% OF THE PURCHASE PRICE."
Ask every buyer two things. How much will you put down, and who will hold it until closing? Then make sure the contract says the same thing, in the same numbers, before you sign it.
The Assignment Clause
An assignment clause lets the buyer hand your contract to someone else before closing. That's how wholesaling works. A wholesaler signs with you, then sells the contract to another investor for a fee. You may never meet the person who actually buys your house.
Colorado has no wholesaling statute. Its standard form, the CBS1, does protect you by default. Section 2.2 says, "This Contract IS NOT assignable by Buyer unless otherwise specified in Additional Provisions." So a buyer who wants to assign has to add that right in writing. Read the Additional Provisions section line by line.
Some Denver buyers make a public promise. The Buy-Out Company's homepage says, "We Don't Assign the Contract," and its FAQ tells sellers, "Never accept an assignable contract." Cash 4 Denver Homes says, "WE DO NOT ASSIGN OR SELL CONTRACTS TO OTHER INVESTORS." We Buy Houses in Denver says, "we're not assigning your contract to someone else."
One detail is worth knowing about that last company, though. Its site footer invites investors to ask for "access to leads for wholesalers or off-market deals for real estate investors." Watson Buys, which shares an owner with it per the BBB, carries the same line. A no-assignment promise and a wholesale lead offer can sit on the same page, so get the promise in the contract.
What Denver's Proposed Rules Would Add
Denver may add its own layer someday. On February 9, 2026, Councilmember Shontel Lewis presented a draft ordinance on "residential wholesalers" to the city council. Under the draft, a wholesaler would have to register with the city, tell you it plans to resell for profit, and give you at least three days before a contract binds.
It's only a proposal. No vote or adoption had turned up as of October 2026, and Lewis herself said, "Nothing is actually set in stone." Until something passes, your protection is the contract you sign and the questions you ask before you sign it.
Let the Title Company Help
The title company is a quiet ally here. It usually sees the buyer's name and any assignment paperwork well before closing day. Call the title office yourself, using a number you looked up rather than one from an email, and ask who it expects to close.
Published Terms, Side by Side
| Buyer | Earnest money published | Assignment statement | Funding claim |
|---|---|---|---|
| The Buy-Out Company | $10,000 | Says it doesn't assign | Cash, proof of funds on request |
| Cash 4 Denver Homes | 1 to 2 percent of price | Says it doesn't assign | Says no hard money |
| We Buy Houses in Denver | Not published | Says it doesn't assign | Says it uses its own funds |
| LVN Real Estate | Not published | Not published | Says it buys with its own cash |
Questions to Send Every Buyer in Writing
- Can you show proof of funds in the same name as the contract?
- How much earnest money will you deposit, and who will hold it?
- Will the contract say it can't be assigned?
- Who will be the buyer of record on the deed?
- What could change the price after the walkthrough or inspection?
That last question matters with any buyer. A few Google reviewers of local cash buyers, LVN among them, describe price changes after a contractor visit. A clear written answer protects both sides.
A Sound Pick for Denver Sellers
Strong deposit and assignment terms are worth asking for, and LVN Real Estate is a solid buyer to ask. It's local, veteran-owned and A+ rated, and its owner is named on its BBB profile. It buys as is, charges no fees or commissions, and can close in as little as 7 days or on a date you pick. Sellers give it 4.4 stars across 78 Google reviews as of October 2026. Call 720-259-9274, put these five questions to its team, and compare the answers side by side at your own pace.
