Proof of funds for a wholesaler

[Joseph Ziolkowski]

Hi all! So I'm working with a realtor now to find REO's, and I need to get a proof of funds letter to make the offers. The thing is, I have no intention of buying the properties myself, I just want to get them under contract to assign to a cash buyer. So that being said, where would I get a proof of funds letter just for the purpose of submitting it to the banks? I have little cash/credit, and being that I'm a newbie, I don't have a solid reputation yet. And if I found someone to give me a proof of funds letter for this purpose, what's in it for them? Sorry for the long post, I'm just full of questions :lol:

[Curt Davis]

Joseph,

Here are a few facts.

1. You can not assign bank REO properties.
2. You will always need a POF letter along with ernest money, usually $1,000.
3. Even if you found someone to give you a POF letter and dont close you will loose your ernest money if you do not close.
4. You will ruin your reputation among the bank REO agents and it will become hard to do business with them.
5. Forming an LLC is pointless. It will not help you lock up the property and easier.
6. In order to sell a bank REO you will have to do a double close if you have an actual cash buyer ready to buy when the bank wants to close but in order to do this you need to be able to lock the property up.

Words of advice: When wanting to wholesale bank reo's you need to actually be legit. You are playing in the big leagues now. The agents know what is going on. Make sure that IF you get a POF that you can close on it if you do not sell it within the given time frame.

My suggestion for you: Stick with trying to sell another wholesale investors property. This way you are out nothing if you do not have a buyer. Find a wholesale investor you can partner on with deals.