Proof of funds required?

15 Replies

In my hometown of Las vegas, I constantly see ads on craigslist for wholesale deals. I would love to ask the agent that's been helping me out to see if they are really deals, but they don't provide the address. They require proof of funds in the email before releasing the address. I have looked online for "free instant POF letters", but they do not lend in Nevada.

Has anyone else gone through this? What is the solution?

Thank you for your time.

The wholesaler doesn't want to give out information unless you demonstrate that you're legit.

Technically sending out personal information and advertising a large bank account to someone through craigslist also make you a target of a scam, too so tread lightly.

In order to get a proof of funds letter, your best bet is probably working with the bank that holds the money (or line of credit) you plan to use to invest.

Also, consider a different approach in looking to meet the wholesaler for coffee in order to discuss more about their business and your criteria. Developing a relationship may make you the person they go to FIRST when they land their next great opportunity.

I like to ask my buyers to provide the addresses of the last two or three houses they closed on.  Then I can verify it with the county records online.  That's how I check to make sure they are legit. 

No, I'm a wholesaler. In my opinion, there shouldn't be a concern in showing POF letters to a wholesaler. You want the person to know that you are legit and ready to do business. If they can't show POF or provide you with the addresses of recent homes that they've bought then I would keep looking for other buyers.

Thank you all for the replies

@Mike Smith - I am a student, so I dont have that large of a bank account. I am trying to implement low to no money down structures (such as using a money partner). But I cant really move forward without knowing the address.

Do most lenders require the address? Id imagine that they would not provide proof of funds without the address so they can do their due dilligence.

POF: ANY statement from a financial institution which declares

  • Name of the institution & its address
  • Your name & account number
  • the balance as of a specific date

As noted above, you just don't throw these about willie-nillie so use it sparsely and with GREAT care - - suggest FAXING as a preference to EMAIL if you elect to provide such information.

IMO and in general, a POF is offered in conjunction ONLY with an offer, NOT to simply get the address of a prospect.

CAVEAT EMPTOR!!

Originally posted by @Mike Smith :

J Beard

In my experience it's pretty typical when dealing with a wholesale that you have no pre existing relationship with.

Not my cup of tea and that condition would drive me out of this kind if REI, which I disdain already.

Originally posted by @Kim Ford :

I like to ask my buyers to provide the addresses of the last two or three houses they closed on.  Then I can verify it with the county records online.  That's how I check to make sure they are legit. 

Great Idea!!   I will definitely begin doing this!   Thanks Kim Ford

In my opinion if the wholeseller already has their interest secured via a contract there shouldn't be a concern with sharing the address with or without POF or a preapproval letter.

Now when you are interested in proceeding with purchasing the property you would need to have POF for a cash deal or preapproval for a financing deal in order for the wholeseller to know that you are a qualified buyer and that they are not wasting their time with a buyer that can't actually close.

What you have described on CL sounds like a scam to me that is trying to fish for buyer's info.

@Robert Adams   yup probably that or the famous craigs list ghost adds.

this is really comical all these wholesalers who really have no clue that are trying to put these deals together.. man it really creates a very bad image of the industry I think. no professionalism at all.

but when you have BP   Interenet webinars and late night TV adds pounding into peoples head that they can get rich in RE with NONE of their own money this is what you get.

POF to get an address? That is ridiculous. Tell this person you want to see proof they have a deal under contract before you show them the money. Most of the time people trying to do it this way don't really have a contract in hand, they probably just know of a deal that someone else has and they are trying to daisy chain and insert themselves into the mix.