Hi guys I just turned 18 and now in the real Estate game. I just started wholesaling and I need a Proof of Funds letter to close my first deal. Someone Please Help!!
Real Estate Broker · Portland, OR · Member since 2019 · 4k+ posts · 2k+ votes
5y
Go to the bank where you have your $100K (or whatever), get a statement, redact any personal info (like acct numbers and your address) and make sure it's on bank stationery.
Real Estate Broker · Portland, OR · Member since 2019 · 4k+ posts · 2k+ votes
5y
Go to the bank where you have your $100K (or whatever), get a statement, redact any personal info (like acct numbers and your address) and make sure it's on bank stationery.
Go to the bank where you have your $100K (or whatever), get a statement, redact any personal info (like acct numbers and your address) and make sure it's on bank stationery.
Not that difficult, if you have the money.
This. I call my bank and they'll even make it out to an individual for me. Comes off a little better than "To Whom it May Concern"
Welcome to wholesaling... If you can't find somebody to assign the contract to then you are left "holding the bag." If you are going to be under contract, then you need to show that you can legally follow through with that contract, regardless if your intent is to be a "wholesaler."
You have to look at the whole picture, not just whatever you want to do.
Investor · Richmond, VA · Member since 2020 · 108 posts · 135 votes
5y
@Ibrahim Mirza Here are some potential options; as a wholesaler, if you don’t have funds of your own, you could do the following:
1. Partner with an established wholesaler who can bring funding to the deal; this can be achieved through a Joint Venture (JV).
2. You could work with a Hard Money or Private Lender that provides transactional loans (asset-based), they will want to analyze your deal, but if it's good, you could do a “double-close.” You will need to ensure it's legal in your state.
3. Lastly, but most importantly, you should be upfront, and you could consider stating to the seller that you partner with other investors and that one of them may come in to complete the purchase. Note: Don’t say this if it isn’t true.
All of these options will avail themselves through good networking at your local REIA. If you are finding good deals (at least 70% of ARV - minus estimated repairs), there is money out there, but you must build relationships and demonstrate professionalism. These other investors benefit from assisting you, and your local REIA can help you cultivate these relationships.
The last thing I’d say is to have your cash buyers list developed (a least a few local ones) so that you can move to disposition quickly if you want to go with options 2 or 3. If you get an asset-based loan, you’ll need to turn that around and sell the next day to your end buyer (again, if it's legal in your state). If you are stating you are working with a network of cash buyers, you need actually to have that network. Wholesaling does not need to be squirrelly or cloak and dagger. After all if you are purchasing fix and flips, you use the exact same methodology to identify, analyze, and structure your deals. The only difference as a wholesaler is you are doing that up front work for the flipper/rehabber. Honesty and building rapport goes a long way with the seller.
If none of these options work, then the seller likely won’t take your offer, which is fine. Continue forward, don’t give up, network, learn, don’t be afraid to partner, and add value to another established investor while you grow.
Investor · Marin County California · Member since 2018 · 1k+ posts · 2k+ votes
5y
Typically, it's not a good idea to start performing surgery on a patient before you have finished digesting the how-to textbook. The guys who sell programs about making money "with no money down" too often make it sound easy. As you have learned, it's not. You need cash or credit or have earned the trust of someone who does.