How do wholesalers work around pre-approval letters or POF?

7 Replies

I have never been asked for a POF.

You know why? I do not go on the MLS to wholesale deals.

See the reason why people complain about how hard wholesaling is is because they do it wrong.

Often (not gunning at you) they are lazy. They want short cuts, they do not want to do the work. That is why wholesalers go to MLS.

"All the leads are there conveniently in one place". you know what the problem with that is?

EVERYONE knows there are the leads, so you have a lot of competition, and  most of these leads what OVER market price. No no not AT market price, most want OVER market price. Do you know HOW hard and unlikely it is you will make a deal there?

As a wholesaler you need to bring VALUEEEEEE to cash buyers.

Napping a lead from MLS is not bringing any value?! A buyer can do that him/herself!

If you want to be paid a fee for FINDING a lead, you need to FIND said lead.

Off market, highly discounted property leads.

People do wholesaling wrong, and you are about to do it wrong.

So ask yourself...

do you want to make money or do you want to keep trying.

OK then. Get a website, rank it #1, and  get this:

Now you can wholesale like 4 to 10 leads a week. Like clockwork!  Do it right. Stop listening or following advice from people here that have NEVER wholesaled a deal in their live. Stop listening to people that struggle themselves doing wholesaling successfully. That is the WORST thing you can do!

Great stuff from @Jerryll Noorden .

I do things a little slower because I am trying to be semi retired. Plus I dont need that much a year to live comfortably. I am the Frugal Real Estate Guy so I only need to do a deal a month or sometimes every other month. BUT I mostly rehab. I do a few wholesales every now and then. When I first started though that is all I did. The thing that you need, as mentioned above, is leads.

I go about it the cheap and easy way for me. It takes more time and is more personally time intensive but that is by design. I put on my personal facebook page that I buy houses. Business facebook the same. I have a website, blog, linked in, twitter that I hardly use and a few other social things. They all say that I buy houses. I help friends and friends of friends who need real estate advice. I refer realtors to people if I can not buy the house or they want too much. I actually help people. And every once in a while a do a real estate deal (like every month).

My mission in San Antonio is to help people with their real estate questions. Out of that helping others some deals come along every month like clockwork. Out of every several people that I try to help, one says, "No I just need to sell it right now. I cant do the repairs, I dont wanat to list it, I have no money, buy my house". Put out the good Karma and it comes back to you.

Originally posted by @Rick Pozos :

Great stuff from @Jerryll Noorden.

I do things a little slower because I am trying to be semi retired. Plus I dont need that much a year to live comfortably. I am the Frugal Real Estate Guy so I only need to do a deal a month or sometimes every other month. BUT I mostly rehab. I do a few wholesales every now and then. When I first started though that is all I did. The thing that you need, as mentioned above, is leads. 

I go about it the cheap and easy way for me. It takes more time and is more personally time intensive but that is by design. I put on my personal facebook page that I buy houses. Business facebook the same. I have a website, blog, linked in, twitter that I hardly use and a few other social things. They all say that I buy houses. I help friends and friends of friends who need real estate advice. I refer realtors to people if I can not buy the house or they want too much. I actually help people. And every once in a while a do a real estate deal (like every month).

My mission in San Antonio is to help people with their real estate questions. Out of that helping others some deals come along every month like clockwork. Out of every several people that I try to help, one says, "No I just need to sell it right now. I cant do the repairs, I dont wanat to list it, I have no money, buy my house". Put out the good Karma and it comes back to you.

 Right back at ya my man! Hustle!!

@Eddie Aiello Wholesalers shouldnt be looking for deals on the MLS in the first place. There is no way around POF. Although there is someone here on BP who asked how to create a fake POF 🤦🏽‍♀️🤦🏽‍♀️🤦🏽‍♀️🤦🏽‍♀️

Wholesale deals should be off market, thats the value they bring to an investor which earns them their wholesale fee.

@Eddie Aiello

First off, POFs aren't worth the paper they're printed on. That being said, why wouldn't a wholesaler get pre-qualified with a lender, whether it be conforming or hard money? Most hard money lenders have pretty lax requirements and getting pre-qualified, is usually as easy as 2 year's tax returns, net worth statement, and a couple month's bank statements. Conforming loans aren't much more invasive until you get into actual underwriting... so get the pre-approval is pretty easy and quick. Alternatively, I have used screenshots of my bank account as POF, and/or just sent over a formal Letter of Intent (LOI), in place of a POF.

Lastly, and I DO NOT advocate this in any way shape or form, but have seen it happen many times, you can simply Google "proof of funds" or "pre-qual," or "pre-approval letter," etc. and there are plenty of templates online.