Wholesaling and pof/written offers
Good morning everyone,
My name is Ibrahim. I have just started wholesaling, been doing a lot of research as well. I’m trying to get a property under contract through an agent but the agent asked me for a written offer for the property and a proof of funds letter. Now this is intimidating to me because this is my first deal and I do not know what to do going forward. Can someone help me figure out what I have to do next?
Most Popular Reply
#4 Wholesaling Contributor
- Investor
- Austin TX
@Ibrahim Kidwai This is just my personal opinion, and Im sure there are those who will disagree. I dont think listed properties are for new wholesalers. For exactly the reasons that you mentioned. Lets say you get the POF. The agent is also going to want a substantial amount of earnest money. 1% of the purchase price is pretty typical. The agent is not going to give you a long due diligence period. The agent is not going to let you bring all your buyers through the property to see it. There are a lot of reasons why you should not be pursuing listed properties as a new wholesaler. I have a FB group for new wholesalers and every week there is a post from someone who tried to wholesale a listed house and ran into problems. Off market is the way to go when you have zero experience. Again this is just my 2 cents. I know its not the answer you are looking for, but thats what I have for you. Once you have some experience and you can confidently speak and negotiate with an agent and provide a POF and write a check for the emd and get the property under contract at an attractive price and have buyers lined up that you know will buy it. You arent quite there yet.