Real Estate Investor · Saint Louis, MO · Member since 2013 · 21 posts · 0 votes
Hello, I want to wholesale through REO or through a realtor mls but what I noticed is they want me to have proof of funds in which I don't have money. What do I do in this situation? I am completely lost on what I would say to a bank or realtor when I inquire about a potential deal.
Homeowner · Denver, CO · Member since 2013 · 65 posts · 23 votes
12y
This probably doesn't answer your question, but I think MLS listings might not be the wisest idea when it comes to wholesaling, especially if you're just starting out. I would look to find motivated sellers and market to them, it would probably prove more beneficial than the MLS.
Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
12y
Wholesaling either MLS listed properties, REO or not, it tough. Everyone's already seen the property. You would have to get it at a significant discount in order to add your fee onto it and be below the MLS listed price. Offering buyers a property at a price higher than they could have bought it off the MLS is a sure way to lose any credibility.
REOs are even tougher because the bank is going to make it difficult for you to resell.
And, yes, you are going to have to have proof of funds (i.e., a bank statement in your name showing money) and a big earnest money check if you're making cash offers. Or a pre-approval letter from a lender and a still non-trivial earnest money check if you're making financed offers. And not a proof of funds or approval letter you print off the internet. Sellers know those are bogus.
If you're serious about wholeslaing you need to do your own marketing. Wholesaling, despite what the gurus claim, takes a lot of time, a lot of effort, and no small amount of money.
Homeowner · Denver, CO · Member since 2013 · 65 posts · 23 votes
12y
This probably doesn't answer your question, but I think MLS listings might not be the wisest idea when it comes to wholesaling, especially if you're just starting out. I would look to find motivated sellers and market to them, it would probably prove more beneficial than the MLS.
Investor · Chicago, IL · Member since 2013 · 2k+ posts · 1k+ votes
12y
Steven, work with a private lender or transactional funders and request them to give you a POF or Proof of Funds.
I agree with @Jon Holdman and @Joseph Konrad : wholesaling MLS listed properties is NOT easy. You have to provide a good reason why they should buy the deal from you vs buying it off the MLS. Having said that: I do this routinely because we get the properties way lower than list price and still sell it below list price.
Flipper/Rehabber · Arlington, TX · Member since 2013 · 1k+ posts · 2k+ votes
12y
Wholesaling properties on the MLS is virtually impossible. You will potentially waste your time, the time of any agents involved, and the time of any buyers you contact because they will have the SAME ACCESS to the property that you have - it's ON the MLS!
If a wholesaler brought us a deal that's on the MLS, we'd likely not take that person seriously for future deals.
Wholesaling is a LEAD GENERATION / MARKETING business. Trolling the MLS is neither of those.
Real Estate Broker · Orange, CT · Member since 2013 · 951 posts · 218 votes
12y
You can wholesale deals on the MLS but the numbers need to make real sense for the end investor. In most cases you will probably have to get an offer accepted on an overpriced rehab .. in this instance other investors never bothered to look at the deal b/c the numbers didnt make sense.
In the case of REO, you need to know what is in the Addendums in regaurds to resale restrictions.