If Motivated seller asks for proof of funds (Wholesaling)

13 Replies

What is a good response if a motivated seller asks me for proof of funds when in reality I'm trying to wholesale the deal?

There are plenty of places that offer proof of funds letters. A proof of funds can come from an investor or a bank. If the seller is smart they will also ask for a VOD along with the POF. The best place to get a POF is from a potential investor you would like to flip the property too. If you do not have that person immediately then you can google "proof of funds letter" and go with the one that seems the most legit. Make sure you do your research and verify they can deliver on both the POF and VOD if needed.

If they are asking for Proof of Funds, they aren't a motivated seller.  Truly motivated sellers don't ask for proofs of funds.  They ask you how quickly you can close.

Good for them! Glad to hear some homeowners are wising up. I'd have something from my buyers that requested this type of property in this neighborhood. I only wholesale for specific buyers of properties that don't fit my criteria. I don't speculate and potentially harm the homeowner. Getting something like a POF early on will benefit your operation greatly @James Allen !

Wholesaling is becoming much more complicated without having capital these days. Realtors know the drill so everybody is doing the yellow letter campaign. If it a good deal and it can be rehabbed for resale email us the details. We'll fund the whole thing.

Originally posted by @Darren Budahn :

Tell them the truth that you aren't looking to purchase the house, but are only looking to assign the contract. 

 I would think that would raise questions that will make things difficult. Have you ever given the break down of the process to a seller before? What if they ask "what do you get out of the deal?" Or "I can sell it without you." I only ask because I want to avoid this from happening to me. 

~Aishah A. 

I have never done a wholesale deal. My point is that I would be truthful to the seller. If you are going to tie up the seller's house and have no ability to close on your own because of a lack of capital, I think you owe it to them to let them know this. Maybe I'm in the minority on this, but what are you going to tell them if you tie their house up for 45 days, haven't found a buyer, and can't close the deal yourself?

Hello Folks,

I would explain the truth, highlighted within the agreement, and express how legal, overall beneficial, helpful, legal, and necessary wholesaling really is to this business.

Everyone investing in real estate from top to bottom has a % of the help equation. Even those who are just learning. Actually, everyone investing in real estate completing deals or not are learning.

Lives are being saved and changed because of wholesaling. As long as the seller understands the initial agreement and all their options just make your offer.

Equitable interest or equitable conversions, however, you choose to express yourself or words should produce some clarity for the seller.