NY wholesale deal — agent requires POF before writing offer

Real Estate Agent · Queens, NY · Member since 2016 · 2k+ posts · 1k+ votes

Quote from @Ni Robinson:

I'm working on my assignment deal in upstate NY and I'm at the point where the seller's agent is ready to write the purchase agreement.

It's an off-market vacant multifamily. I've already walked the property, analyzed the rehab and numbers, and I'm comfortable with the seller's $85K asking price. The agent knows upfront that my intended exit is assigning my contractual interest to an investor buyer and has no issue with assignments.

The issue I'm running into is POF. His brokerage requires proof of funds before he'll write a cash offer. I don't personally intend to close with my own cash unless necessary — the business model is to contract the property and assign the contractual interest to an end buyer.

The agent also said he can represent me for 3% + a processing fee, recommended a $2K–$5K deposit, and offered an attorney referral.

For anyone actively wholesaling/assigning properties in New York, particularly upstate NY:

How are you legitimately handling POF when the brokerage requires it before the purchase agreement is executed?

Are you using transactional/hard-money POF, a funding partner, a JV partner, or another structure?

Also, when dealing directly with the listing agent on an assignment, are you typically obtaining separate buyer representation or staying unrepresented and using your attorney?

I'm not looking for fake POF or a workaround that misrepresents funds. I'm trying to build the process correctly and establish the right relationships for future deals.

Hello Ni,

Its tough to get into a contract with little-no $ down in New York since this is an attorney state. While the agent and seller may be in agreement with little-no $ down, the attorney will likely advise against and instead try to get the buyer to have 5-10% of the purchase price as deposit.

If you already have the end buyer, you can use their POF.

Not sure if there are any lenders who would lend for this deposit but a JV partner could potentially help. If you can borrow a 5% deposit ($4,250) at 5% interest, for example, you'd pay that person $212.50/month until you close then pay them their $4,250 in full.

Not sure why the listing agent would be charging you a fee to represent you if you are not the direct buyer. Typically, the seller would cover the listing agent's fee and sometimes they'll cover the entire buyer agent fee. In this scenario, there doesn't seem to be a buyer agent.

All the best!

Abel

REbuild Team - eXp Realty5234 Reviews

Website View Page

1 Reply

Harry B.Pro Member

Lender · New York, NY · Member since 2026 · 71 posts · 22 votes

3w

Have your transactional partner draft a pof agreement with you and share the account balance screenshot. Since the same account# will be funding the double close it's enough to get past any seller anxiety. Support what your proposing with a track record and collect 3 buybox loi from your C buyers. Hope this helps! Godspeed!

[email protected]917-348-2846

1 Reply

Ni Robinson
OP
Real Estate Consultant · Rochester NY · Member since 2026 · 20 posts · 12 votes
3w
Harry, I appreciate this. This is actually the type of structure I'm trying to understand.
The property is an off-market vacant duplex in Rochester. Purchase price is $85K and my original intended exit was an assignment rather than a double close. Do you provide transactional funding/POF for NY deals at this price point, and would your POF be available before the property is under contract?
Also, if I secure an end buyer and an assignment is permitted, would the transaction still need to double close to use your POF, or can the POF support the initial offer while the ultimate exit remains an assignment?
If you do this type of transaction, I'd be interested in discussing your requirements and fees.
1 Reply

Igor Ganapolsky

Coral Springs, FL · Member since 2018 · 495 posts · 112 votes

3w

ni glad you're trying to build this the right way instead of cutting corners. i buy properties at tax deed auctions in florida and i also wholesale deals to my buyer list, so i've dealt with the POF thing a bunch.

what worked for me early on was being upfront with the seller or their agent about the assignment structure before we even got to the POF conversation. most agents who are used to working with investors already understand how assignments work - the ones who don't are usually the ones who will give you a hard time no matter what you show them. on your $85k deal, the fact that the agent already knows your exit strategy and is fine with assignments is a good sign.

for POF specifically, the cleanest approach is to have a transactional lender or a funding partner who can provide a letter stating they'll fund the closing. some brokers will accept that, others want to see an actual bank statement. if they're demanding a bank statement and you don't have one with enough cash, you could partner with someone who does - just make sure your JV agreement is clear about who gets what and when.

one thing i'd flag: that 3% fee the agent wants to charge you on top of whatever the seller is paying him is worth pushing back on. if he's already getting a commission from the seller, asking you for another 3% on an $85k property is $2,550 out of your assignment fee. at minimum try to get that down to 1-2% or work it into your deal math so you're not eating it.

on the buyer representation question - in an attorney state like NY, your real protection is a good RE attorney, not a buyer's agent. the attorney reviews the contract, makes sure the assignment clause is solid, and handles closing. that's worth more than an agent showing you properties.

1 Reply

Davon Murphy
Boston, MA · Member since 2015 · 50 posts · 7 votes
3w
I wonder how long it takes to find the agents who actually understand what an assignment of contract is let alone actually are able to apply it into their clause. I tried to get properties with the assignment with an agent before and after 6-properties she ended up telling me her agency doesn't have or allows the clause in their contracts...
1 Reply
Ni Robinson
OP
Real Estate Consultant · Rochester NY · Member since 2026 · 20 posts · 12 votes
3w
Right ....I told him what the exit was and he said he was fine with that ...showed the property, and I went over numbers. I told him about the clause and he said his firm doesn't allow it. Also he needs statements....I know this can happen in many states but I'm use to dealing with owners, not agents, and this is my first NY property. I normally work land in TX and Georgia. So I'm thinking maybe I need to JV or move on because this process in NY is a little different than im use to. Plus I have no partners to jv with.
0 Reply

Stuart UdisPro Member

Attorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes

3w

Submitting proof of funds that you know does not represent money actually available to close may constitute fraud and, if the federal elements are met, wire fraud. That includes using someone else’s bank balance as proof of your ability to purchase when that person has not genuinely committed the funds to the transaction. An intention to find another buyer does not make the representation accurate.

[email protected]

1 Reply

Ashish AcharyaBusiness Member

CPA, CFP®, PFS · FL · Member since 2017 · 5k+ posts · 3k+ votes

3w

Ni, the biggest thing here is that I would not manufacture a POF just to satisfy the brokerage requirement. If they want proof that the contract can actually close, I'd want whatever you provide to represent a real funding source you could use if the assignment does not happen.

For wholesalers, that can sometimes mean a transactional lender, hard-money lender, private funding partner, or your own available funds. The important part is that the POF is legitimate and that the terms of the purchase agreement still give you the assignment rights you're expecting.

I’d also make sure your attorney reviews the contract before you sign it. In an assignment deal, I’d want the agreement to be very clear on assignability, earnest money, inspection/due-diligence rights, closing timeline, and what happens if you do not locate an end buyer. I would not rely only on the listing agent’s explanation of those provisions.

On the representation question, I’d be careful about letting the listing agent represent both sides without fully understanding the agency relationship and conflicts involved. Since this is New York and you’re intentionally assigning the contractual interest, I’d want a local real estate attorney involved regardless.

From the tax side, repeated wholesaling is generally an active real estate business, not passive rental activity. If you start doing assignments consistently and generating meaningful profit, I'd also evaluate whether an S-Corp makes sense based on profit level, activity volume, payroll, and reasonable compensation rather than automatically operating everything through a default LLC.

The main goal should be to build a process you can repeat: legitimate funding proof, clean contracts, proper legal review, and project-level bookkeeping from the first assignment onward.

Feel free to DM me, I’d be happy to send over a few resources that might help with wholesaling entity structure, S-Corp planning, and keeping the tax side organized as you scale.

[email protected]941-914-7779

INVESTOR FRIENDLY CPA®5240 Reviews

Website View Page

TaxMD® | Tax Planning Software

Website View Page

0 Reply

Terry Godfrey

Wholesaler · Charlotte, NC · Member since 2026 · 25 posts · 10 votes

3w

Respect for asking how to do it the right way.

The cleanest move at $85K is a JV with a real buyer. Find an investor who wants the property, sign a simple JV agreement with your attorney, and use their POF on the offer. They're a real buyer with real money, and you're splitting the spread instead of assigning it. Nothing gets misrepresented, and the agent gets exactly what his brokerage needs.

Second option is a POF letter from a transactional or hard money lender. That only holds up if they'll actually fund the deal if your buyer falls through, so talk to them before you use it.

On the rep question: I'd skip having the listing agent represent you too. He works for the seller. You're in an attorney state, so let your own attorney review everything and protect you. Save the 3% and processing fee for your spread.

Also ask your attorney about any NY disclosure rules on assignments before you sign. Better to know now than at closing.

1 Reply

Crystal SmithPro Member

Moderator

Real Estate Broker · Chicago, IL · Member since 2014 · 2k+ posts · 1k+ votes