Question about the wholesaling process
Member since 2025 · 4 posts · 6 votes
Question about the wholesaling process
Most Popular Reply
Member since 2025 · 30 posts · 20 votes
1yhi Kristine, I've had this problem a lot of times when I was recently starting wholesale here's my list that I used when I was starting out is basically a go to Guide feel free to reach out to me if you need any more help or anything, but I've have everything basically organized with questions that I've asked and answers that I found so if you ever have anything, let me know.
- Use a Cash Offer + Assignment Clause
Submit your offer as “Cash” (no financing addendum needed), and include this in the contract:
“Buyer may assign this contract without the prior written consent of Seller.”
This keeps your offer clean and allows you to assign it to an end buyer later. - Get a Proof of Funds Letter (From a Partner or Lender)
Even if you don’t have cash yourself, you can use: - A hard money lender
- A transactional funding company
- A private investor partner
- Online services offering “POF letters”
This helps satisfy sellers or agents who require it. - Use an Option Contract Instead
If you can’t show POF or make a strong offer: - Sign an Option to Purchase agreement instead of a full purchase contract.
- This gives you the right (not obligation) to buy during a set timeframe.
- You can find a buyer during the option period and assign your option or do a double close.
- Increase Your Earnest Money Deposit
To build seller trust without POF or financing: - Offer a higher earnest money deposit ($1,000–$2,500).
- Include an inspection contingency or option period to protect yourself.
- Target Motivated Sellers (Not MLS Deals)
- Direct-to-seller deals (FSBOs, distressed sellers, off-market properties) are often more flexible.
- Avoid agents who demand traditional POF or financing — or work with investor-friendly agents who understand wholesaling.
8 Replies
- Member since 2025 · 30 posts · 20 votes1y
hi Kristine, I've had this problem a lot of times when I was recently starting wholesale here's my list that I used when I was starting out is basically a go to Guide feel free to reach out to me if you need any more help or anything, but I've have everything basically organized with questions that I've asked and answers that I found so if you ever have anything, let me know.
- Use a Cash Offer + Assignment Clause
Submit your offer as “Cash” (no financing addendum needed), and include this in the contract:
“Buyer may assign this contract without the prior written consent of Seller.”
This keeps your offer clean and allows you to assign it to an end buyer later. - Get a Proof of Funds Letter (From a Partner or Lender)
Even if you don’t have cash yourself, you can use: - A hard money lender
- A transactional funding company
- A private investor partner
- Online services offering “POF letters”
This helps satisfy sellers or agents who require it. - Use an Option Contract Instead
If you can’t show POF or make a strong offer: - Sign an Option to Purchase agreement instead of a full purchase contract.
- This gives you the right (not obligation) to buy during a set timeframe.
- You can find a buyer during the option period and assign your option or do a double close.
- Increase Your Earnest Money Deposit
To build seller trust without POF or financing: - Offer a higher earnest money deposit ($1,000–$2,500).
- Include an inspection contingency or option period to protect yourself.
- Target Motivated Sellers (Not MLS Deals)
- Direct-to-seller deals (FSBOs, distressed sellers, off-market properties) are often more flexible.
- Avoid agents who demand traditional POF or financing — or work with investor-friendly agents who understand wholesaling.
- Use a Cash Offer + Assignment Clause
- Investor · Get yourself trained before doing something inadvisable. · Member since 2024 · 3k+ posts · 1k+ votes1y.
Quote from @Kristin Hayles:
Hi, I am very new here. I am a real estate agent, and have been researching wholesaling, thinking I might want to do it. The one question I have is this: How do I get a property under contract if normally a Third Party Financing Addendum is required, or a proof of funds? This normally is submitted with an offer.
Be careful these days, if you don't disclose that you are not the end buyer, you may be breaking the law. You are a step ahead by having a real estate license. Just follow the same rules. - 1yDaniel TanasaBusiness MemberRealtor · Houston, TX · Member since 2019 · 351 posts · 174 votes
Hello Krisin,
You just write the offer as being cash and let the seller know that you may assign the deal to somebody else. Just make sure you lock it up at a price where you're confident you're able to find a buyer or if not you can buy it yourself. Especially if is a pre-foreclousure situation, you want to make sure you don't tell the seller you can buy it and a few days before auction you realize you can't assign it.
As far as proof of funds, I would just not bring it up, since you're planning to assign it, but if they asked about it, you can bring a pre approval form a private money or hard money lender.
Good luck!
- Real Estate Agent · Houston Texas · Member since 2025 · 16 posts · 16 votes1y
Run comps, determine value and repairs, add your fee, make offer, be sure to have an option period or other way out, double close cs assign. It’s the cleanest way to do it, also since you’re licensed YOU MUST disclose that you’re a licensed realtor. I am licensed and wholesale all the time. Been in it since 2019
- 1yDoug SmithPro MemberLender · Tampa, FL · Member since 2013 · 2k+ posts · 2k+ votes
Hi Kristin, Yes, I'm a lender, but I've also either built or flipped scores of homes over the past 15 years.Many of those we got from wholesalers in the Tampa area. We've met many, many wholesalers over the years, but there's been only one...ONLY ONE...who we found that we could trust. Everyone else that we've met has either A) never brought us a property after we first chatted , B) got super greedy and priced themselves out of having a great repeat relationship, or, more often, C) took us for fools and lied about ARV, the Extent of the Rehab, or some other important factor. On the front side, just be honest with people. "Through my business, I'm built very strong relationships with several investors and I really feel as if they would love this home." With us on the back end, we really appreciate honesty and trust. I suspect the same is true on the front end on the A to B transaction. Good luck in Houston!
- 1yStephen MoralesBusiness MemberJacksonville, FL · Member since 2025 · 402 posts · 205 votes
Quote from @Kristin Hayles:
Hi, I am very new here. I am a real estate agent, and have been researching wholesaling, thinking I might want to do it. The one question I have is this: How do I get a property under contract if normally a Third Party Financing Addendum is required, or a proof of funds? This normally is submitted with an offer.
Hi @Kristin Hayles
I have been licensed in FL for almost 10 years and been wholesaling for several of those.
Make sure in your contract you disclose that you are a licensed agent in the state of TX. If you work with a Private Money Lender or Hard Money Lender then they will be able to assist with providing you a proof of funds for that specific property. Building a relationship with one that is very responsive and can get those letters over to you quickly is a big plus! - Member since 2025 · 26 posts · 22 votes1y
Wholesaling is the "get rich" trend that is always being hyped. It has to be the most annoying part of real estate. The cold calling, the ridiculous claims and promises. You are basically lying to the seller that you represent a buyer. That is why you have a licensed real estate agent or broker. It is the underbelly of the real estate world. All the time wasted trying to get a seller and buyer lined up because of your "great " deal you would be better off working a normal job. The percentage of a "wholesalers" making a decent living are few and far in-between. You are far better served to get a real estate license and "hustle" that way. I don't need a "wholesaler" to find me deals. Never have, never will. Most successful investors have a team already and don't need some amateur fly by night cold caller to get deals.
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