REO Agent won't accept my private money POF

[Michael Lerch]

I'm a wholesaler and I've wanted to start making offers on the MLS. My friend is my buyer agent. I have a private money lender in the mix to use as transactional funding so I can close the deal.

First offer on an REO I make and the agent won't accept a POF from a private lender. Says it has to be my cash or conventional loan from a lending institution. My agent did some digging and said if I can come up with the terms of the loan from the private lender (% down, interest rate, how many months) that they would finally look at my offer. This sucks since my private lender is willing to fund the transaction, but only for a day or 2 until I close with my cash buyer.

How are other wholesalers making offers on REOs these days? Do I just get my private lender to make up terms on the POF for the sake of getting things done? ... Oh... I may have answered my own question. I guess it doesn't really matter what terms are set if I close the next day anyway. :)

[Account Closed]

Michael:  Long time no see.  Welcome back.

The agent has probably had plenty of offers with POFs from hmls fall through. After all, you're not going to close on it unless you find a buyer, right? REO agents are on to wholesalers with vague POFs from hmls. It's a dead give-away that you're planning to wholesale. :) If I were an REO agent, I would probably reject offers with open ended hml POFs too.

What the agent is asking for is a loan commitment, something specific that shows your lender is actually planning and willing to fund this particular deal.  Is your lender willing to provide such a commitment?  I suspect not, since they are really just a transactional lender.

You may just want to move on to listings  with a different agent. What amount of funds are we talking about here?