Should you tell agents how much cash you have on hand to buy ?

[Bryan T.]

Should you always tell agents how much cash you have on hand to buy investment properties? Let's say you have 500k cash on hand, should you tell agents and wholesalers this upfront so they know that you are serious and will send you deals first? I am looking to BRRRR with the help of agents and wholesalers finding me deals.

[Chris Mason]

Originally posted by @Bryan T.:

Should you always tell agents how much cash you have on hand to buy investment properties? Let's say you have 500k cash on hand, should you tell agents and wholesalers this upfront so they know that you are serious and will send you deals first? I am looking to BRRRR with the help of agents and wholesalers finding me deals.

 A reasonable agent will want to see either a preapproval letter, or proof of funds.

If your target price point is $250k and you have a total of $500k but don't want the world to know that, ask your bank for a proof of funds letter to cover $250k plus buffer, call it $275k. Similarly, it's not unusual for my clients to ask for a preapproval letter for much less than the max they "could" do.