New to Wholesaling RE Agent asking for POF

[Cesar Reyes]

I am a newbie in the Wholesaling business in Rhode Island, and i got in contact with a real estate agent who sends me the mls listings in the areas i ask and sets up times and days for me to go see the houses i choose. i am mostly trying to stay away from REO or bank owned properties for now until i make my first deal. i have just been trying to deal with the seller personally because to my knowledge POF was not needed. Well my Agent and i went to go look at a house which i showed interest in flipping and she told me to make an offer i need a proof of funds. Now I, as a wholesaler, am planning on just matching the seller to one of the cash buyers i have spoken to about similar properties. I do not have proof of funds what should i do?

[Jon Holdman]

Sorry, I quickly glanced back at the first post and misread it. Doh!

I'm guessing, though, that you're dealing with properties listed on the MLS. Not quite as bad as a REO, but still not as simple as if you put in the time and effort (ok, and money) into your marketing and find your deals directly. When its on the MLS and you're wholesaling, you're essentially adding another commission into the deal. If you want to sell listed properties, you might as well get your license and be a buyer's agent. That's essentially what you're doing as a wholesaler.

Not to mention, if its on the MLS, anyone can see it. When I get e-mails from a new wholesaler, I go search for their deal on the MLS. Very often I find it and the wholesaler is offering it to me at a higher price than on the MLS.

Is your buyer's agent or the listing agent asking for the POF? If its your buyers agent, have a conversation about what you're trying to do. If he or she objects, you'll need to find a different agent. If its the listing agent, you're stuck. If the end buyer is truly going to pay cash, perhaps you could get them to provide the POF and make the offer in their name with an agreement for them to pay your fee separate from the offer. Trouble is all fees are supposed to be on the settlement statement. And the agents involved may balk at your fee, since they're generally not allowed to pay any fees to someone without a license.