WHAT'S A NEWBIE TO DO?

[Jim Means]

Hello Everyone,

I have a newbie question I hope some of you experienced wholesalers will answer, especially any wholesalers in TEXAS.

Ok, here’s the story

A newbie wholesaler meets a local buyer who tells him she would be happy to do a deal with him if he finds a cretin kind of property and gets it under contract. She gives him all her requirements for the property including the price (90k).

Later that week the wholesaler talking with an acquaintance who turns out to be a real estate agent learns the agent knows of such a property available (a pocket listing) for 85k.

Things are going really well right?

Here’s the question; If the wholesaler goes in to get the property under contract (accounting for the agent’s full commission) how likely is it in your experience the wholesaler {who doesn’t have anything near 80k personally} will be asked to produce “proof of funds” and if he is asked what would you advise him to do?

[Jay Dewberry]

If it's a REO listing, it's very likely you may have to produce "proof of funds" letter plus earnest money. There are several places that will give you a POF letter (transactional funding) for your deal. You'll have to find an investor friendly attorney(or title company) to facilitate a double close. Hope that helps. Good Luck.