Question about the wholesaling process

[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. 

[Alex Ross]

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. 

1. 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.
2. 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.
3. 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.
4. 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.
5. 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.