POF for wholesaling??

Question

So I’m recently trying to get my first deal in wholesaling and I want to start with wholesaling on market properties considering they are already for sale now I remember a while back I tried contacting an agent and they wanted me to send them proof a funds of course me starting out didn’t have enough money to show that I am able to buy the property and didn’t know where I could get a proof of fund letter. Now does anyone have insight on where I would be able to get a POF letter. There is a property I am trying to wholesale and I would like to know where I could get one just in case the agent asks for it?

Nick C. · Answer

There's nothing worse than a wholesaler who emails out on market properties. It's embarrassing, and it's a good way to make sure your buyers delete your emails before looking at them.

Bottom line is if you can't find off market properties you can't wholesale. You should be focusing on finding off market properties, not how to fake a POF. If a seller is asking for POF they will be too knowledgable for you to get the house cheap enough to sell anyway.

Steve Morris · Answer

Go to your banks and ask for a redacted acct statement showing funds.

If you don't have funds BE HONEST WITH THE SELLER/BROKER and tell them.  You may be able to work something out, but if I find out later you have nothing that offer goes to the deepest bottom of the pile.

Anthony Surach · Answer

@Kyle J. Alright thank you for that but how would I find these off market properties like what are good sights that you would recommend to find these properties

Kyle J. · Answer

@Anthony Surach  Any good listing agent is going to attempt to confirm you're a qualified buyer who is capable of closing by asking for either: #1 - Proof of funds (if you say you're a cash buyer), or #2 - A copy of your pre-approval letter (if you're attempting to buy with a loan/financing contingency).  Reason being, they don't want to tie up their client's property with a potential buyer who can't actually close.

Proof of funds is nothing more than a bank statement with your name (the buyer) on it showing you have all of the available funds necessary for the purchase.  It really doesn't even have to be as formal as a bank statement.  I've used a screenshot from my bank's website just showing the total balance and my name.  You just need to be able to assure the listing agent that you have the ability to close.

There are websites out there that will allow you to print out fake POF so you can "fool" listing agents into thinking you have the money.  I'm guessing many agents are onto these sites, but perhaps some are not.  But do you really want to start off your real estate investing with trickery?

Bottom line, if you don't have the funds, you won't be able to provide proof of them.  It's as simple as that.

I would also suggest you NOT start off trying to wholesale properties listed on the MLS.  They do not make good wholesale properties.  Why would they?  They're available to literally EVERYONE.   What value are you bringing to people by offering them a property that's already listed?

If you really want to try wholesaling, focus on off-market properties.  You likely won't even be asked for POF.  Plus, if you actually do end up getting a property under contract, you'll actually have something of value to offer to your buyers.

Just my two cents.