Cincinnati, OH · Member since 2021 · 27 posts · 16 votes
Hello everyone, I am a new local wholesaler here in Cincinnati and building a cash buyers list and I want to know some good questions to make sure they’re legit with funds and closings. Any ideas on what to ask?
I just had the conversation with one of my team members earlier this week. He told me the best way to protect myself if I was to advertise "I buy cash houses" or something similar, would be to get a non-exclusive agency contract written up between you and the buyers on your list and then have those buyers provide you with a proof of funds. This way you have proof of a relationship and proof that those buyers do have the cash in reserve to act if they see a property they like! Proof of funds could be as simple as a bank statement that shows cash in excess of the median home value in your area.
This was a real estate broker conversation, so we already have contracts that we can modify to legally create this relationship. A lawyer could easily draft you up a blanket contract without names and terms that you could utilize for your buyers.
I hope this helps and I wish you the best my friend! Take Care,
I just had the conversation with one of my team members earlier this week. He told me the best way to protect myself if I was to advertise "I buy cash houses" or something similar, would be to get a non-exclusive agency contract written up between you and the buyers on your list and then have those buyers provide you with a proof of funds. This way you have proof of a relationship and proof that those buyers do have the cash in reserve to act if they see a property they like! Proof of funds could be as simple as a bank statement that shows cash in excess of the median home value in your area.
This was a real estate broker conversation, so we already have contracts that we can modify to legally create this relationship. A lawyer could easily draft you up a blanket contract without names and terms that you could utilize for your buyers.
I hope this helps and I wish you the best my friend! Take Care,
@Anthony Beasley - like @Brian Bohrer mentioned above, if anyone offers to pay cash, always request "POF" (Proof of Funds). Typically, a POF is a bank statement or a screenshot of the prospective buyer's account of where the money is located. Sometimes, the POF may come from 2+ accounts (if the prospective buyer has their money spread out). For most people and most bank accounts, their money is considered "liquid" and they can probably access the funds in very little time (1-3 business days).
Word of caution: If you are getting 401(k) statements be careful. Some 401(k) accounts will not allow the owner of the account to access all the funds in their 401(k). Also, if the buyer is allowed to access the 401(k) funds, it may take up to 2 weeks to deliver those funds. If what you desire is a fast closing sale, this may not be beneficial to you. Its always a good idea to ask the prospective buyer these questions.
I just had the conversation with one of my team members earlier this week. He told me the best way to protect myself if I was to advertise "I buy cash houses" or something similar, would be to get a non-exclusive agency contract written up between you and the buyers on your list and then have those buyers provide you with a proof of funds. This way you have proof of a relationship and proof that those buyers do have the cash in reserve to act if they see a property they like! Proof of funds could be as simple as a bank statement that shows cash in excess of the median home value in your area.
This was a real estate broker conversation, so we already have contracts that we can modify to legally create this relationship. A lawyer could easily draft you up a blanket contract without names and terms that you could utilize for your buyers.
I hope this helps and I wish you the best my friend! Take Care,
Thanks @Brian Bohrer i will definitely check this out, I really appreciate it!
Hello everyone, I am a new local wholesaler here in Cincinnati and building a cash buyers list and I want to know some good questions to make sure they’re legit with funds and closings. Any ideas on what to ask?
You are going about it backwards, just find the deal the money will find you. But to answer your question just vet them. What is the address of your last purchase, what net cap are you seeking. I can tell you in under 20 seconds if someone is real, also get a bank statement
@Anthony Beasley - like @Brian Bohrer mentioned above, if anyone offers to pay cash, always request "POF" (Proof of Funds). Typically, a POF is a bank statement or a screenshot of the prospective buyer's account of where the money is located. Sometimes, the POF may come from 2+ accounts (if the prospective buyer has their money spread out). For most people and most bank accounts, their money is considered "liquid" and they can probably access the funds in very little time (1-3 business days).
Word of caution: If you are getting 401(k) statements be careful. Some 401(k) accounts will not allow the owner of the account to access all the funds in their 401(k). Also, if the buyer is allowed to access the 401(k) funds, it may take up to 2 weeks to deliver those funds. If what you desire is a fast closing sale, this may not be beneficial to you. It’s always a good idea to ask the prospective buyer these questions.
@Manny Vasquez appreciate the feed back! I also have this noted.
Hello everyone, I am a new local wholesaler here in Cincinnati and building a cash buyers list and I want to know some good questions to make sure they’re legit with funds and closings. Any ideas on what to ask?
You are going about it backwards, just find the deal the money will find you. But to answer your question just vet them. What is the address of your last purchase, what net cap are you seeking. I can tell you in under 20 seconds if someone is real, also get a bank statement
Good luck
@Bob S. I appreciate the feed back thank you and I got it noted.
Hello everyone, I am a new local wholesaler here in Cincinnati and building a cash buyers list and I want to know some good questions to make sure they’re legit with funds and closings. Any ideas on what to ask?
You are going about it backwards, just find the deal the money will find you. But to answer your question just vet them. What is the address of your last purchase, what net cap are you seeking. I can tell you in under 20 seconds if someone is real, also get a bank statement
Good luck
@Bob S. I appreciate the feed back thank you and I got it noted.
I had " a buyer" tell them they wanted props in Cleveland. He said his criteria was 10 acres or less and 500k or less, I should have hung up, right then. Well I entertained him a bit. I asked what the last address of the prop is you purchased, he could not remember " as we do so many deals ". I then asked for a bank statement, he sent me a " chase " acct with 10.4 mill I then laughed and hung up. Totally FOS,
Hello everyone, I am a new local wholesaler here in Cincinnati and building a cash buyers list and I want to know some good questions to make sure they’re legit with funds and closings. Any ideas on what to ask?
You are going about it backwards, just find the deal the money will find you. But to answer your question just vet them. What is the address of your last purchase, what net cap are you seeking. I can tell you in under 20 seconds if someone is real, also get a bank statement
Good luck
@Bob S. I appreciate the feed back thank you and I got it noted.
I had " a buyer" tell them they wanted props in Cleveland. He said his criteria was 10 acres or less and 500k or less, I should have hung up, right then. Well I entertained him a bit. I asked what the last address of the prop is you purchased, he could not remember " as we do so many deals ". I then asked for a bank statement, he sent me a " chase " acct with 10.4 mill I then laughed and hung up. Totally FOS,
Good luck
@Bob S. I was texting a out of state "buyer" and he told some similar stuff to what you just shared, he said he needed "a property that was built before 1940, 1000+ sq ft, 225k max price point, ARV 275k", and he provide to send me a letter of POF from straight line funding it said that he had 2 million in liquid funds not really sure if he was really a cash investor.
Hello everyone, I am a new local wholesaler here in Cincinnati and building a cash buyers list and I want to know some good questions to make sure they’re legit with funds and closings. Any ideas on what to ask?
You are going about it backwards, just find the deal the money will find you. But to answer your question just vet them. What is the address of your last purchase, what net cap are you seeking. I can tell you in under 20 seconds if someone is real, also get a bank statement
Good luck
Again, listen to this dude. I am starting to like him more and more.
Find the deals, the money is the consequence.
If you want to quickly make sure a cash buyer is legit... make him put $2K earnest deposit in a cashier check written to the closing attorneys firm that is instructed to release the money to you if they back out for ANY reason!