Hey guys, I'm a newbie in Real Estate Wholesaling trying to gather as much information as i can. So my question is, do you guys know what to do when a seller's Attorney is asking for proof of funds and is also looking for ridiculous amounts for Earnest money? Thank you all in advance.
There are websites that do transactional funding that allow you to hold money for say 1 to 3 days on a double close. I am not necessarily recommending them, but if you google that phrase one might be able to provide you a letter for POF.
NEVER DONE IT, ONLY HEARD ABOUT IT!
they probably don't think you can close....
She is not looking to close herself...am I correct this is a wholesale deal? Or is this a hypothetical question that has you preemptively seeking an answer?
Yes David correct. This is actually a hypothetical question as my state (NY) requires RE Attorneys for deals. I've seen and heard that attorneys usually don't let their client sign the contract if you cant provide a good amount of earnest money and usually would ask for proof of funds. Are there any ways that I can resolve an issue like this?
I have to believe there are wholesalers operating in New York. Perhaps you should repost with a title directed specifically at them.
Nothing like that here in Ohio
Low earnest money deposits aren't uncommon. I've seen as little as $500 or $1,000 even in NY. On any property you are trying to wholesale it likely needs too much work to pass an appraisal for financing and to be sure you can pay cash they want to see proof of funds. If you're trying to wholesale something already listed on the MLS you're probably wasting your time.
You want your own attorney if you're going to operate in NY. They should be able to walk you through the best way to handle this and structure you contract. It's why you pay them.
Thank you very much for your replies, much appreciated!
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