Is it ilegal to use fake POF? [[ WHOLESALING ]]

[Account Closed]

I KNOW IT MIGHT DEPEND. BUT, IS IT ILEGAL TO USE FAKE POF IN ORDER TO GET A PROPERTY UNDER CONTRACT

[Matt Macbride]

Quote from @Lydia R.:

@Fili Aguirre People like you are the reason that wholesalers get such a bad reputation. Wholesalers get labelled as scammers, criminals, deviants and unethical and its people like you engaging in practices such as using fake POF that cause an entire group of people to be painted with one broad brush.

[Matt Macbride]

Quote from @Lydia R.:

@Fili Aguirre People like you are the reason that wholesalers get such a bad reputation. Wholesalers get labelled as scammers, criminals, deviants and unethical and its people like you engaging in practices such as using fake POF that cause an entire group of people to be painted with one broad brush.

So as a wholesaler, how do you provide a proof of funds when you don’t have one? Can you use your cash buyers pof in your name? Can you get a hard money lender to write you one? I’m very new to wholesaling and want to be ethical.  

[Matt Macbride]

Quote from @Wayne Brooks:

@Account Closed This is Exactly why seller's and agents require a POF.....to prevent this "I have no money, but I hope to flip the contract" crap.

To be clear, sellers/agents only accept a POF which shows the cash in the name of the person signing b the contract/making the offer.....not some other third party.

I have never used a proof of funds.  I will never use a fake one.  But you calling it “crap”. Whats so wrong with assigning a contract especially if you tell the seller that’s what your gunna do and be upfront about it? 

[Matt Macbride]

Quote from @Aaron K.:

@Account Closed no because you don't as best I can tell.  That would be like showing them Wells Fargo's balance sheet as proof of funds, they also *might* fund the deal.  Sometimes white lies when negotiating are okay such as "Oh this one is gonna be slim for me" or things like that.  Other than that do NOT lie to or mislead someone in a real estate transaction full stop.

 If you tell the agent or the seller before you do send the proof of funds that you are going to assign the contract will they be fine with you providing your buyers pof since you are upfront.  Also can you get a hard money lender to write you a pof?

[Matt Macbride]

Quote from @Lynnette E.:

Originally posted by @Account Closed:

@Lynnette E. Have you done wholesaling?

Nope, but I did enter into a contract with a self identified flipper who was a scummy, sleazy, lying whole seller who could not buy a pack of gum with his own money... 

 I’m getting into wholesaling. If I’m upfront and tell them what I plan to do with the contract (assign it) what’s so wrong with that? 

[Matt Macbride]

Quote from @Nigel Guisinger:

Integrity of this industry is not always what it should be. Would you want to deal with someone that isn’t telling the truth?  As you grow in this industry you only have your reputation. And when you get to the point that you have real wealth you will trade favors with others for favors. Don’t lie. Be honest. This board can give you a wealth of knowledge to make a fortune. This board has people that can lend and have balance sheets that can buy almost any deal. Be the kind of investor we all should be and operate above the board. 

So can I get a hard money lender to provide a pof? Even if I don’t have the funds myself.  

[Lydia R.]

@Matt Macbride It honestly depends on the situation. Right now the market is so hot that you will always get more for your wholesale deals when you put them on the market. I have a lender that offers loans specifically for wholesalers and I close on properties and put them on the open market. However, the majority of off market sellers will not ask you for POF so dont even worry about something that will probably happen very rarely. Stay away from on market deals and youll be fine. Feel free to reach out to me any time and Im more than happy to help you get your first deal!

[Duncan Hayes]

why use a fake POF when you can literally connect with any real Hard Money Lender and get a real POF?