Starting Out
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
Updated over 10 years ago on . Most recent reply
POF Letters, HELP !!!!!!!
WHERE can I get a proof of funds letter without using my credit. I am attempting to put my first wholesale deal under contract but am having a hard time finding a proof of funds letter to get through the first step of the REO property. I keep seeing the word "blanket" but am not sure if that is what I should be looking for. Also Is there a way to use my end cash buyers funds as the POF because I am planning on closing via land trust? I thought the whole point of "wholesaling" was to flip the property without using your own funds? I found an amazing wholesale reo deal and would really like to find a way to wholesale it. (HELP!!!!)
Most Popular Reply
Credit is unrelated to proof of funds. A proof of funds means a bank statement with the same name as the one on the offer showing enough cash to close on the deal.
Sounds like your making all-cash offers on REOs without having the cash to actually buy the property. You should not be doing that! REO sellers will often ask for 10% earnest money on all cash offers.
What you might be able to do is to make a financed offer and show a pre-approval from some hard money lender. That makes your offer weaker than an all cash offer, but its the best you can do if you truly don't have cash.
The only folks who claim you can do wholesaling with no money are the gurus who are trying to convince you to pay them $20K for their secret sauce. The reality is you do need cash to be a wholesaler. And knowledge of what values are (ARV) and repair costs.
If you're going to try to wholesale a REO realize you're almost certain to have to do a double close, you will probably need a transactional lender because the title company is unlikely to let you use your end buyer's funds to close your purchase transaction, and some REO sellers put terms into their contracts that will make it difficult for you to double close at all. Read their addendums carefully. You can try changing them if they block your ability to wholesale the deal, but its not likely they will accept your changes.