How do you lock up a wholesale contract

Question

I have looked into wholesaling pretty extensively and one big question I have is how do you give proof of funds on a house when you have no intention on buying it and obviously don't have the funds to purchase it? Any tips on this would be great, Thank you!

Nixon Vayupak · Answer

Usually, from my experience, when dealing directly with a seller, proof of funds is not required. It only gets sticky when you are trying to get deals and wholesale off the MLS. Once you get the deal under contract and have a buyer in place, you can have the buyer provide the proof of funds and turn it around to the seller.

Todd Rasmussen · Answer

@David M.

You either commit fraud or don't provide proof of funds.

Steve Morris · Answer

I have looked into wholesaling pretty extensively and one big question I have is how do you give proof of funds on a house when you have no intention on buying it and obviously don't have the funds to purchase it?

Hey, you're a wholesaler - Just make it up.

Taylor E. · Answer

I explained this in more detail on another recent thread (search the forum or check my profile for it), but essentially, if POF is being requested, you're probably dealing with a real estate agent. Don't try to skip around this, just ask your cash buyer if they would like to provide POF, or ask the agent if you could provide POF at the end of the inspection period.

With off-market, most motivated sellers are not going to ask unless they've been ran through by agents and other wholesalers.

Frankly, if someone is being particularly hostile just because you're a wholesaler, go on to the next deal. Let them suffer and try to do the disposition work themselves. I've seen a lot of property drop and get desperate, even go down all the way to 10-30% of the original asking price, simply because they turned away wholesalers and their property was left on the market too long. A buyer's market is coming with the eviction moratorium and the foreclosure moratorium coming to an end. I expect a 2008-level of a crash if the government market doesn't get its act together. If sellers/agents can't adapt and do business, they'll sink instead of swim.

David M. · Answer

@Todd Rasmussen thanks for the articulate response.

David M. · Answer

@Nixon Vayupak Thank you, will drive for dollars more instead of looking on MLS. I appreciate the insight!

How do you lock up a wholesale contract

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