Proof of funds requested by agent before showing?

Question

Newbie investor. Working with a realtor that sends me MLS leads daily. Found a property i am interested in for a potential wholesale but want to see it in person to get a more accurate idea of repair cost. The agent is asking for proof of funds prior to showing the property. How should I handle this seeing I dont personally have the funds and haven’t quite lined up a buyer just yet. (I do have several buyers i am pretty sure would be interested)

John Thedford · Answer

They are protecting the seller from FRAUDS and SCAMMERS that are not real buyers.

Jonathan Greene · Answer

Your first issue is trying to wholesale something off the MLS. That won't happen. If it's on the MLS, all of your buyers have the same access as you do so there is no purpose to a middle person in the equation

Your second issue is that to effectively wholesale you need access to funds, whether you eventually deploy them or not. I won't show my off-market properties without a proof of funds. On-market I don't really care because there is a lockbox. Off-market, there are usually occupants involved and you only get a few bites at the apple without screwing up the deal so you only want qualified buyers in there.

Will Barnard · Answer

It is any list agents or buyer rep agent’s duty to ensure the buyer can perform, i.e. proof of funds or proof of lender willing to fund.

You can’t “get around this” so you need to show a real proof of funds or an approval from a lender in which case you are not all cash, rather financing. If your plan is to wholesale an MOS listed deal with two agents involved, good luck with that, I will tell you that you are likely spinning your wheels and getting zero traction.

Matt M. · Answer

@Tre Tipton

My realtor asks same of new clients. To not waste anyone’s time.

Tamara Deering · Answer

@Tre Tipton

If you are new to wholesaling buying off the MLS is going to be tricky because there is typically not enough meat on the bone to make money for you and your end buyer.  You will need to be able to make aggressive offers that you can back up and if you don't have the cash or an established reputation writing the offer with an and/or assigns line will be a hard sell.

To answer your specific question you can work with hard money lenders, establish yourself and get proof of funds letters from them.  You can also develop relationships with investors with cash who are willing to provide you with proof of funds as well.

Also, a word of caution in some markets if you are not a Realtor or Attorney you are not allowed to sell properties.  Wholesalers must sell an option to purchase or 100% interest in a contract, to protect yourself make sure you are well versed in the rules of your state before you write your first offer.

Proof of funds requested by agent before showing?

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