What goes on my proof of funds?

[Isaac Snagg]

Hi I am a new wholesaler and I want to submit an offer on two REO properties now I know Im required to submit a proof of funds and Im going to use a transactional funding company to do this but I want to know. Do I send over one proof of funds for both deals with the amount im offering added up or do I send two separate letters with the exact amount Im offering on each or with just a little over the amount Im offering

[J Scott]

Originally posted by Isaac Snagg:

Well these particular properties Im going to wholesale I have a buyer lined up but hes not willing to submit proof of funds so Im using a proof of funds from a transitional lender Im not going to use them to fund the deals

Unless you actually have the cash in your bank account to close the deal, this isn't a cash transaction -- if you tell the bank this is a cash transaction, they will want to see proof of funds (a bank account statement is most common) in your name.

Assuming you can't provide a bank account statement in your name showing the funds, you should be submitting a financed offer and get a pre-qual letter from a lender in your name.

Whether the bank will accept something from a transactional lender is debatable -- I've heard of plenty of cases where the bank is fine with this and plenty of cases where the bank will not accept this. So, you're taking a risk.

As for wholesaling the deal, you do realize that you won't be able to assign the contract, right? So, you'll either have to purchase in a business entity and sell the entity or you'll have to double close. Either way, you're going to actually need the funds to close this deal, regardless of whether they come from you, the buyer or the transactional lender.