Proof of Funds for a Wholesale Deal

2 Replies

If a wholesaler is not doing a double close (which I understand is extremely rare to do anymore), do they always have to show proof of funds to the seller or can they assign the contract and use the end buyer's funding as the proof of funding. I'm getting started and I'm trying to figure out if I will need to speak with some hard money lenders as well. Any help would be awesome!

Originally posted by @Daniel Johnston :

If a wholesaler is not doing a double close (which I understand is extremely rare to do anymore), do they always have to show proof of funds to the seller or can they assign the contract and use the end buyer's funding as the proof of funding. I'm getting started and I'm trying to figure out if I will need to speak with some hard money lenders as well. Any help would be awesome!

 It is not assumed that you will be required to show proof of funds, unless your contract stipulates such.  However, if the Seller (or their agent) is smart, they will ask for them in order to validate you as a Buyer able to perform.  If you have an end buyer identified and assigned, I don't see any reason why you couldn't use thier proof of funds letter.  Obviously it would not be used for YOU, but rather for their ultimate purchase of the property.

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