FSBO Seller Questions to the Buyer
A lot of people start out wholeselling and I'm thinking about the process of actually meeting with a seller and taking a look at the property. Obviously you should come prepared with knowledge about the property, contracts, and an offer.
What if the seller asks for proof of funds and I don't have it because I am going to assign the contract to another investor for a fee? Do FSBO sellers normally ask for a proof of funds or pre-approval from the ALL CASH buyer? If they do, what should I say?
@Ryan Farr That is an interesting question. I have never been asked for a proof of funds letter. You could just explain that you use private funds to invest in your deals rather than having the funds sitting in an account, so you can't provide a proof of funds letter. If they aren't comfortable with that and you know it is a good deal, you could always offer to increase your deposit. I am interested to hear if any others have ever been asked that.
The way I look at it though is that it would be a good problem to have because that means you are getting out there and making seller appointments. Always good to create new problems that need solutions.
@Matt Fishthank you for your reply and info you provided. I was running scenarios through my head of the possible things people ask about in this situation when its a FSBO
@Ryan Farr See this thread as well:
https://www.biggerpockets.com/forums/432/topics/199072-best-way-to-provide-proof-of-funds-to-seller