How to make sure cash buyers are legit

[Anthony Beasley]

Hello everyone, I am a new local wholesaler here in Cincinnati and building a cash buyers list and I want to know some good questions to make sure they’re legit with funds and closings. Any ideas on what to ask?

[Brian Bohrer]

Hey Anthony,

I just had the conversation with one of my team members earlier this week.  He told me the best way to protect myself if I was to advertise "I buy cash houses" or something similar, would be to get a non-exclusive agency contract written up between you and the buyers on your list and then have those buyers provide you with a proof of funds.  This way you have proof of a relationship and proof that those buyers do have the cash in reserve to act if they see a property they like!  Proof of funds could be as simple as a bank statement that shows cash in excess of the median home value in your area.

This was a real estate broker conversation, so we already have contracts that we can modify to legally create this relationship.  A lawyer could easily draft you up a blanket contract without names and terms that you could utilize for your buyers.

I hope this helps and I wish you the best my friend!  Take Care,