Hi all! We are working our first wholesale deal. We are stuck on the step of having a POF letter ready before making offers. I have read of besttransactionfunding.com to get a free POF but that makes me a little weary as we do not actually have the funds to purchase the house if we should not be able to find a buyer. I have also read of some using their end buyer's POF but we don't have one close enough yet to do so. Any advice would be appreciated. Thank you!
If a seller is asking for pof, one angle to take at this is to consider that they probably aren't that motivated and odds are your deal isn't discounted enough to get a buyer.
there are a few other red flags here but you probably don't want to hear it. Get POF from your end buyer or a hard money lender. Anyone can get a HML.
I'd say don't wait to get a POF in order to start making offers. Start making offers anyway and only provide POF when asked.
And if they are asking you for a POF, you probably haven't built enough rapport yet with them and they don't think you're credible.
In addition to the above mentioned points, let's say the seller is motivated enough and is just trying to solidify his position, consider offering high earnest money .
High EM + short close time-frame > POF .
Alternatively, hard money lenders will sometimes give you a POF. As @Allan Smith mentioned, if a seller is asking for POF, I'll work him as a warm lead .
The objective of wholesalers is to find people too dumb to know what their property is worth or to ask for POF
Pretender versus contender?
Pretenders bog the process down with a lot of drama and wasted time. If you can't be the real deal, don't play. Please know this: Brokers/Sellers/Title Companies - a whole lot of folks verify POF Letters received in transactions. Falsifying a financial document is fraud. The FBI has a White Collar Crime Division that loves stuff like this...you might want to consider removing this post.
@Donovan George A POF is evidence that the Buyer on the contract Already has the cash in an account in Their name....anything else is some sort of loan preapproval.....totally different than already having the cash yourself.
@Allan Smith thank you so much for your input!
@Oscar Varela thank you!
@Tommy Adeoye thank you!
@Wayne Brooks thanks!