Proof of funds?

Question

Every time I'm doing a wholesale deal especially for commercial I'm always asked for a proof of funds. I always get generic letters from sites that support this very thing. But I'm always afraid that they might try to verify it and they realize it's a generic letter. I'm just looking for a private Lindo who can't help me with this.

Jeff S. · Answer

Commercial property owners and their brokers are far too sophisticated to fall for this nonsense, Account Closed. I’m sorry, but while you might not mind deceiving potential sellers, perhaps you could be truthful here. We both know you’ve never wholesaled a commercial property using fake POF documents like this. What lender would participate in that?

Realize that you are asking a lender to help you lie by falsely representing that they will back you with the cash to close. When enough of your deals fall through under the name of the lender, it is not only you who will lose your reputation. The lender will lose its reputation as well.

Years ago, these shenanigans were common. Lenders would put fill-in-the-blank templates you could download online. Brokers are much more sophisticated now and will expect bank statements, letters of credit, or other evidence showing you have experience and access to real cash, not a phony baloney POF letter that could leave them hanging at a closing table. Expect AI verification of your paperwork to catch forgeries, as well as possible background and credit checks by the lender.

Honesty and professionalism aren’t optional in real estate, Jeffrey; your reputation and future deals depend on them.

John Clark · Answer

First you wrote" "But I'm always afraid that they might try to verify it and they realize it's a generic letter. I'm just looking for a private Lindo who can't help me with this."

Then you wrote:  " I am looking for a partner who understands the bridge-to-exit model, not one who seeks to chastise a client for needing capital."

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The only person with a contradiction is you, @Account Closed. Your initial post was about using generic letters and fear of detection. That's not a bridge-to-close model. It's a fraud model. You are trying to get away with a false representation of a material fact that you intend the counterparty to rely on. Textbook fraud, just like prospective residential tenants using fake pay stubs.

Mike Grudzien · Answer

It really sounds like "Account Closed" is defending a scam.....

Account Closed · Answer

I am writing to address the logical inconsistencies in your recent feedback:

• ​The Capital Contradiction: You’ve cited a "lack of cash" as a sign of inexperience. This is a fundamental contradiction of your role. Lenders exist precisely so professional investors don't have to tie up their own liquidity. If I intended to use $20M+ of my own cash, I wouldn't be speaking to a lender.
• 
• ​Structure vs. "Tactic": Simultaneous escrows and contract assignments are standard institutional mechanisms. Shaming a legal financial vehicle simply because it is used in wholesaling suggests a personal bias rather than an objective risk assessment.
• 
• ​Experience vs. Liquidity: True commercial experience is the ability to source a high-value asset at a margin and secure an exit. I am seeking a professional private/bridge solution to facilitate that exit—not a lecture on "unprofessionalism" for using legal leverage.

​If your institution is unable to provide leverage for this structure, please be direct. I am looking for a partner who understands the bridge-to-exit model, not one who seeks to chastise a client for needing capital.

thank you.

Proof of funds?

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