Wholesaler · Austin, TX · Member since 2015 · 30 posts · 6 votes
I posted an ad on Craigslist and I had an investor reach out to me and tell me that he is looking for wholesale deals in the area that I live.
Upon further inspection via White Pages and LinkedIn it seems that he is legit and in my area but how do I know for sure? Are there any questions that fellow wholesalers on here ask potential buyers before working with them to screen them?
Hi @David Johnson! The question I always ask is: "When can you send me proof-of-funds?" Then, I pay very close attention to what they say and also what they do.
If they hem and haw and question why I need one, I immediately know they are not for real. Serious cash buyers have no problem providing POF.
Then, if they send me some BS generic POF letter they pulled off the Internet, I immediately know they are not for real. If, instead, they send me an actual recent bank statement showing sufficient funds to invest in my deals, we've got ourselves a winner!
Hi @David Johnson! The question I always ask is: "When can you send me proof-of-funds?" Then, I pay very close attention to what they say and also what they do.
If they hem and haw and question why I need one, I immediately know they are not for real. Serious cash buyers have no problem providing POF.
Then, if they send me some BS generic POF letter they pulled off the Internet, I immediately know they are not for real. If, instead, they send me an actual recent bank statement showing sufficient funds to invest in my deals, we've got ourselves a winner!
I am a buyer not a fellow wholesaler, but I agree with @Mitch Messer. I can tell you that, as a buyer, I can get you a proof of funds at any time, midnight or on the weekends. I do enough business with my local bank that they will respond quickly whenever needed.
Additionally, over time, assuming you are able to find good deals, you will build up a group of investors that you know and can trust.
Remember, finding the deals is the hard part, finding the money is easy (once you have a legitimate deal).
Hi @David Johnson! The question I always ask is: "When can you send me proof-of-funds?" Then, I pay very close attention to what they say and also what they do.
If they hem and haw and question why I need one, I immediately know they are not for real. Serious cash buyers have no problem providing POF.
Then, if they send me some BS generic POF letter they pulled off the Internet, I immediately know they are not for real. If, instead, they send me an actual recent bank statement showing sufficient funds to invest in my deals, we've got ourselves a winner!
This is excellent advice and exactly what I would suggest. And yes, ask for it right upfront, otherwise you are just wasting time.
To add to this great advice, I would also say you can ask them to send you previous addresses of homes they have completed, then pull title records for this buyer (their business name assuming they buy in an entity which most real buyers do). From there you can confirm they told you the truth and really did buy those properties. Great way to ask then verify.
@Will Barnard awesome! Thank you for the advice! I reached out to the guy regarding POF and I'm waiting to hear back.
Good for you. Another piece of advice is to get your buyer's exact criteria and then go shopping for said criteria knowing when you find a match, you likely already have that buyer or buyers who will want it. Just any deal may not be a deal to that specific buyer which is why I recommend you getting these added pieces of info once you have VERIFIED they have funds and have done deals in the past.
@Will Barnard that’s exactly what I’m doing. :) I have a document that I created with the buyers that I have so far and all their criteria so I can look for properties for each.
As for POF from buyers I will definitely make sure to get that from everyone I add to my buyers list from now on. Thanks again!
@Jason Phelps that seems like exactly what he was trying to do. I actually did some more digging on him and one of the websites that I use for getting info on people actually said that he has had some criminal activity in the past so I’m glad it didn’t work out.
The advice from @Will Barnard about their last deal and check out names on the LLC is spot on!
Another way is to ask for the lender on their last deal. If they don't give you one, then that could only mean one thing, which isn't a dealbreaker but it gives you an insight.
After you verify POF and have a seller just be honest with the seller because the seller will think that You are the actual buyer unless you tell them differently. Good luck!
After you verify POF and have a seller just be honest with the seller because the seller will think that You are the actual buyer unless you tell them differently. Good luck!
The art of wholesaling by unlicensed brokers usually involves deceiving sellers and often walking away if they are not successful unlicensed brokering the deal. I find it ironic that most fake buyers are concerned with the integrity of their buyers. You see this all the time on BP.
@Jason Phelps I agree! It looks like the "investor" I was talking to was a flake, he hasn't responded since I asked for POF.
@David Johnson Sounds like he was trying to wholesale your wholesale without having any skin in the game.... I've seen that a lot this past year.
Surprise, surprise! This is exactly why it is so important to qualify or disqualify anyone you intend to add to your buyers list. So many think having a huge buyers list is a good thing, most of the time it is just a waste of time. Quality buyers over quantity is the name of the game. Congrats on your due diligence on this character, now you know to stay away from him and not waste any more of your valuable time.
@Jason Phelps I agree! It looks like the "investor" I was talking to was a flake, he hasn't responded since I asked for POF.
@David Johnson Sounds like he was trying to wholesale your wholesale without having any skin in the game.... I've seen that a lot this past year.
Surprise, surprise! This is exactly why it is so important to qualify or disqualify anyone you intend to add to your buyers list. So many think having a huge buyers list is a good thing, most of the time it is just a waste of time. Quality buyers over quantity is the name of the game. Congrats on your due diligence on this character, now you know to stay away from him and not waste any more of your valuable time.
Dude's............Stop chasing Craigslist Cowboys. Grab a license and chase the sellers. You chase the sellers and you'll have all the buyers chasing you. Do you want to run around chasing bees or do you want to have the hive?
Certainly another way and means to go about it. Not to say one way is better or worse than another as that all depends on the investor/agent and their goals, desires, skill sets, etc. To each his own as they say.
@Jason Phelps I agree! It looks like the "investor" I was talking to was a flake, he hasn't responded since I asked for POF.
@David Johnson Sounds like he was trying to wholesale your wholesale without having any skin in the game.... I've seen that a lot this past year.
Surprise, surprise! This is exactly why it is so important to qualify or disqualify anyone you intend to add to your buyers list. So many think having a huge buyers list is a good thing, most of the time it is just a waste of time. Quality buyers over quantity is the name of the game. Congrats on your due diligence on this character, now you know to stay away from him and not waste any more of your valuable time.
Dude's............Stop chasing Craigslist Cowboys. Grab a license and chase the sellers. You chase the sellers and you'll have all the buyers chasing you. Do you want to run around chasing bees or do you want to have the hive?
@David Johnson so your going to run a background campaign on someone just to add them to a buyers list???? You want them to prove something just to be added to a email list??
If you want them to prove something do it when you sign the contract or in your case assign the contract. They will be putting up some earnest money at that the as well.