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.

[Duane Ortega]

@Jim Means

I as a transactional funder can provide proof of funds letters as long as it's for a double close transaction.  We can also provide you with the money (transactional funds) to close on the first transaction.  We can also provide you with a list of title companies with whom we've worked in the past in Texas.  Not sure how close they are to Smyer, but it's a start.  Feel free to lookup my profile and contact us or go to our website for our proof of funds.

Good luck,

Duane.

[Chris Boyd]

@Jay Dewberry Great advice!

[Josh Zelaya]

Great Question @Jim Means as the wholesaler I would talk to the agent and have him/her know the benefits of working together in this deal. I would not present myself as a cash buyer to the realtor because that will be misleading and could potentially create a bad outcome. I would tell the agent and homeowner you work with a cash buyer. When the paper work comes in, most of the time I use the TREC Contract and check the box that says the contract could be sign-able. 

Or use your contact with the seller and have an addendum with the realtor to protect their interest. 

Or use a Double Closing method where you can leverage the buyer funds in escrow and use it as prove of funding. Depending what type of relationship you have with your buyer. I use a title company that both the buyer and wholesaler trust for this strategy.

Best of luck! 

Josh Zelaya

[Jim Means]

Thank you so much guys for the great advice.