Wholesale and proof of funds...

[Nick Schulze]

When putting in offers on homes with the intention to wholesale, does one need proof of funds before getting the PA signed?

[Pratik P.]

@Nick Schulze

You don't need a POF. But's it may be a good idea to line up an HML/transaction funding for the deal. They'll give you a proof of funds. Of course, never tell the seller that you have all the cash yourself. Be clear that you will be using someone else's money for the purchase. If you know what you're doing, you'll know whether you can close the deal or not with confidence.

@John Thedford

I always tell sellers that I don't have all the money and that I will be using another investor's money to complete the purchase. They have zero issues with that. Not everyone has that much cash sitting around to buy a house. We have to use HML, transaction funding, bank loans, private money, double-closing, etc. Nothing uncommon.