Pre Approvals Are Ridiculous

Buying & Selling Real Estate
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Pre Approvals Are Ridiculous

James Wise
Real Estate Broker 路 Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH 路 Member since 2013 路 30k+ posts 路 20k+ votes

Ya'll these bogus pre approvals for wholesalers are getting way out of control.

I just had a MF'r make a cash offer on one of my properties. When I asked him for his proof of funds, he sent me a word document that said "Mrs Janice has approved him for a private loan."

C'mon bro.

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Luka Milicevic
Real Estate Agent 路 Nashville, TN 路 Member since 2015 路 2k+ posts 路 2k+ votes
2w

HAHA!

Oh I have seen them!!!

I called the number once on one of these "pre approvals" and the guy had NO idea what I was talking about.

Even easier now with AI to make fake pre approvals.

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  • Luka Milicevic
    Real Estate Agent 路 Nashville, TN 路 Member since 2015 路 2k+ posts 路 2k+ votes
    2w

    HAHA!

    Oh I have seen them!!!

    I called the number once on one of these "pre approvals" and the guy had NO idea what I was talking about.

    Even easier now with AI to make fake pre approvals.

    2Reply
  • JD MartinBusiness Member
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    Rock Star Extraordinaire 路 Northeast, TN 路 Member since 2015 路 10k+ posts 路 16k+ votes
    2w
    Quote from @James Wise:

    Ya'll these bogus pre approvals for wholesalers are getting way out of control.

    I just had a MF'r make a cash offer on one of my properties. When I asked him for his proof of funds, he sent me a word document that said "Mrs Janice has approved him for a private loan."

    C'mon bro.

    馃ぃ馃ぃ馃ぃ I wish we had laughing emojis for up votes.

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  • Chris SeveneyBusiness Member
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    Investor 路 VA 路 Member since 2015 路 21k+ posts 路 19k+ votes
    2w

    I would have asked for Ms Janice contact information and kept it going for a little bit to have some fun 

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  • Ebonie Beaco
    Lender 路 Chicago, IL 路 Member since 2025 路 204 posts 路 101 votes
    2w

    This is why it's very important for loan officers and realtors to be able to spot a real buyers verses a wholesaler? Sorry to read about your experience. 25+ years in this business on the real estate side and as a lender, I can spot everything about them. 

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  • Stuart UdisPro Member
    Attorney 路 Philadelphia 路 Member since 2018 路 2k+ posts 路 3k+ votes
    2w

    There's a wholesaler in Philly who has been posting on social media about a $39/m wholesaler community he created and one of the perks is unlimited pre-approval letters. Pretty sure by the technical definition that meets the necessary elements to be charged with wire fraud.

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  • V.G JasonPro Member
    Investor 路 Member since 2022 路 3k+ posts 路 3k+ votes
    2w

    If, at minimum, this provides comic relief in a time of hardship during real estate for most.

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  • Rick Albert
    Real Estate Agent 路 Los Angeles, CA 路 Member since 2018 路 2k+ posts 路 1k+ votes
    2w

    I don't understand how the government hasn't cracked down on wholesalers. They are bringing a buyer and seller together to close a transaction and get paid for it. That exactly what a licensed real estate agent does. The only difference is they have no fiduciary responsibility to anyone and no one has protection.

    For example in California you have to disclose everything you know. If a Seller doesn't know what needs to be disclosed, I doubt a wholesaler does and not the Seller has been opened up to a lawsuit they didn't know existed.

    All the government and the National Association of Realtors have to do is remove the Clear Cooperation Policy (banning off market properties) and require licenses. Wholesaler can operate literally how they have been and they can charge whatever they want, even if it is a spread. There's no law that requires it to be a percentage of the sale.

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