Hello BP Nation,
I invested in getting REO information from a website only to find out that the information provided is outdated ( won't mention site name here, but message me if you want to know). After inquiring with listed realtor and finding property sold four months ago, the realtor offered to provide updated information after receiving my "proof of funds" letter. I'm attempting to start out as a wholesaler and don't have much funds to prove. Would appreciate any suggestions to help get realtors to work with me.
Many thanks in advance,
Bryan, are you simply looking for REO's? If so, these are deals that would be directly on the MLS. Proof of funds is irrelevant if you are simply searching. Find a reputable real estate agent and set up an automatic notification system to email you properties that meet your set criteria right off MLS...this is totally free.
The only thing I can extract from your post is that perhaps you need to have a pre-qual letter prior to making an offer? Are you able to clarify?
Are you looking at this one property still or just trying to get info on others that agent may have?
Not to be a jackass, but the reason everyone is asking for proof of funds because there's a bunch of people like you that cant buy these things wasting agents time and putting things under contract that never close...
Also, what value are you bringing to the table talking to a realtor and then wholesaling it from them? That's not really how wholesaling works. If you want to do MLS stuff, sounds like you should go get a realtor license. If you want to wholesale you really need to be finding off market stuff. Plenty of podcasts and info on here on how to go about doing that.
To answer your question, there are plenty of online places that will print off worthless POF letters for you.
As far as I know you cannot wholesale REO properties. At least not Fannie Mae, Freddie Mac, or HUD. They will not allow the contracts to be assigned. You could possible do a double close as long as your profit doesn't exceed their maximum allowable resell price which usually lasts about 90 days.
As for proof of funds, you probably shouldn't be trying to "circumvent" any rules. They want to see funds so they know you can close a deal. You could possibly get a pre-qual letter from a hard money lender if you are planning on doing a double close or even if you plan to purchase the property to rehab.
If you're wholesaling, you'll need to go out and find the deals that are NOT "on the market" and therefore, have no realtor. You send out letters to people behind on bills or to owners of vacant/abandoned houses...or people who just inherited a house they don't want. You are the "I buy any house" type of guy. I doubt you'd get much of a wholesale deal with most properties with a listing agent.
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