How to get around proof of funds for wholesaling on market deals

[Ricardo Ramirez]

Hello everyone just starting out. I have done tons of research and I think its time for me to actually start. The one thing I can't figure out is how to go around a sellers agent who would ask for proof of funds during an offer made if im a wholesaler just trying to get a good deal to a local investor.

[Mindy Jensen]

Quote from @Eric M.:

Originally posted by @Ricardo Ramirez:

@Eric M. So your suggesting wholesaling is a way to hustle people out of their houses? How do some people such as Jerry norton, lily Thompson, or the wholesaling coach say its a great entry path into real estate. It seems like there is always two sides of the story and would not want to get looked at as a person who is taking advantage of people. Yet how else do I raise capital for fix and flip deals without taking a long time to save up from my regular job.

 Yes, this is EXACTLY what I am saying. Sorry if you don't like it. There is a reason states are passing anti-wholesaler laws. You seem to categorize any answer you don't like as nasty and ignorant. We are giving you legitimate advice and we are not newbies. We have seen how this business works. We have all fallen for the gurus and the BS before and we now know the reality. That is supposedly why you asked your question, because you wanted the benefit of people who are experienced. But when we tell you what is real, you dismiss it because you want to believe the hype you have seen in some 2 bit you tube video.

I don't know who any of those "gurus" are but my guess is they say that because it makes them money to say that. I never said you can't make money wholesaling. If that is the way you want to do it. Plenty of people make their living ****ing other people over. Plenty of people are happy to make money hustling others. If that is you that is fine. I never made a judgement on it. I simply gave you the facts.

Now, your last question is a funny one. How else do you raise capital? It sounds like you are saying so what if it is scummy business I have no other choice other than to do scummy business because I am too impatient to get a job and save money. Well, again that is up to you and your personal ethics. You said you wanted to do things honestly, but maybe you don't. That is fine.

The answer is, yes, you get a ****ing job and save your money like most of us did. But also you can partner with other legit investors to get access to capital. You can find legitimate lenders. You can work for other flippers. There are lots of legitimate ways other than faking proof of funds and convincing little old ladies to sell you their house cheap. And by the way, more than 90% of the people (probably more like 95%) who try wholesaling never make a dime. So the idea that wholesaling is a great entry to the business or a great way to earn capital is laughable. No matter what those gurus say, your chances of success are quite low.

EDIT: BTW, I did look up these people you mentioned. LOL. Small time, wanna be gurus at best. Maybe you should take a listen to Lilli Thompson's own video called Real Estate Wholesaling SUCKS.  LOL. Why is it that people think any idiot who makes a You Tube video is worth following?

 The OP asked a question, most likely something he was taught - or more to the point, something that was not properly explained in the courses he took - and he is here to ask for help.

Your responses come across as mean spirited, saying he is "searching for suckers." He is clearly new to this whole thing. There is no reason to be rude.

@Ricardo Ramirez, wholesaling is typically done on off market properties because those on the MLS are already being marketed. If something isn't selling on the MLS in this market, you won't be able to find a buyer for it either.

Agents ask for proof of funds because they want to know you'll be able to close. You are entering a legal contract when you write an offer and not being able to close means you have entered the contract fraudulently. (And yes, you are offering to buy it or assign it, but we're picking nits here.)

Wholesaling, as it is taught by the gurus, is a very difficult business to succeed in. (And now there will be a bunch of people who come in to respond how easy it was for them. That's definitely not the norm.)

I've been an investor since 1998. I live-in flip, meaning I basically live in a construction zone. My husband and I do all the work ourselves. I know construction costs, I am an expert in our local market, I'm an agent so I have access to the MLS for comps, etc. So I have every tool available that a successful wholesaler would need: experience, market knowledge, access to comps for ARV, complete understanding of the whole process and I'm a licensed agent. And I would NEVER try to wholesale. It's too much work, there are too many unknowns and I don't want to get stuck with a house that won't sell.

Wholesaling is not the easy money that's being touted by these people online. Maybe it was in 2008 when you could practically give a house away, but it isn't now.