New wholesaler - need proof of funds

[Dale Manning]

Thank you in advance for your time! I am looking at getting into wholesaling and using on market leads to start out with. I know I will need a proof of funds letter for this; my question to the community is what is the best way to go about getting this? I would be seeking 100% transactional funding and no guarantee that I will need it (other details of the deal will determine an assignment vs double close) but I know I need that POF and frankly don't have the cash in the bank. Is there a tactic that works best? Will hard money lenders just print off 5-10 proof of funds in a day for you if you need it?

If anyone has a solid suggestion for a way to get the POF in Florida I would be happy to take it!

[Michael Kinsella]

Hi Dale,

If you are seeking transactional funding, then you may need to speak with a number of lenders, as it's a less common product. Regarding the proof of funds, not every lender will be willing to provide you with one, and of those that do, they will likely base that amount in the proof of funds off of your liquidity.

Your liquidity can be comprised of a number of different items. Some of the things a lender might take a look at are...

1. Cash in bank accounts (checking/savings accounts)
2. Stocks, bonds, and other securities
3. Retirement funds
4. Life insurance cash surrender value
5. Cash-out availability on lines of credit

Not every lender who can provide a proof of funds will take all of the above items into account, so you'll need to ask them beforehand.

With regards to obtaining the proof of funds, lenders who provide them will typically have you fill out a preliminary application, and then you can request one thereafter.

Hope this helps,

Michael