Proof of Funds When Getting a Property

[Sheldon Alex]

Hi Everyone,

I recently talked to a broker I'm working with, and she mentioned that in order to put in a offer for a property, and going through the residential purchase agreement (or contract), you have to first show proof of funds, and be able to pay the costs for getting the property.

Now if someone is starting out wholesaling with no money, and from reading about how it's possible to do wholesaling with no money at all, how can that be achieved? 

Sheldon 

[Kyle J.]

If you're targeting MLS-listed properties, you're going to need to show proof of funds (or a pre-approval letter if making a financed offer).

A realtor/broker wants to know you have the ability to close before allowing a property to be tied up or before wasting their time showing houses or making offers (since they don't get paid unless the property actually closes). 

If you don't personally have the funds, you should focus on off-market properties or possibly partner up with someone who does have the funds.