New to Real Estate · Texarkana, TX · Member since 2021 · 8 posts · 1 vote
Hi all! We are working our first wholesale deal. We are stuck on the step of having a POF letter ready before making offers. I have read of besttransactionfunding.com to get a free POF but that makes me a little weary as we do not actually have the funds to purchase the house if we should not be able to find a buyer. I have also read of some using their end buyer's POF but we don't have one close enough yet to do so. Any advice would be appreciated. Thank you!
Contractor · Nashville, TN · Member since 2014 · 1k+ posts · 1k+ votes
5y
If a seller is asking for pof, one angle to take at this is to consider that they probably aren't that motivated and odds are your deal isn't discounted enough to get a buyer.
there are a few other red flags here but you probably don't want to hear it. Get POF from your end buyer or a hard money lender. Anyone can get a HML.
Contractor · Nashville, TN · Member since 2014 · 1k+ posts · 1k+ votes
5y
If a seller is asking for pof, one angle to take at this is to consider that they probably aren't that motivated and odds are your deal isn't discounted enough to get a buyer.
there are a few other red flags here but you probably don't want to hear it. Get POF from your end buyer or a hard money lender. Anyone can get a HML.
Investor · Member since 2020 · 164 posts · 87 votes
5y
In addition to the above mentioned points, let's say the seller is motivated enough and is just trying to solidify his position, consider offering high earnest money .
High EM + short close time-frame > POF .
Alternatively, hard money lenders will sometimes give you a POF. As @Allan Smith mentioned, if a seller is asking for POF, I'll work him as a warm lead .
Real Estate Broker · Hyde Park Tampa, FL · Member since 2019 · 2k+ posts · 3k+ votes
5y
Pretender versus contender?
Pretenders bog the process down with a lot of drama and wasted time. If you can't be the real deal, don't play. Please know this: Brokers/Sellers/Title Companies - a whole lot of folks verify POF Letters received in transactions. Falsifying a financial document is fraud. The FBI has a White Collar Crime Division that loves stuff like this...you might want to consider removing this post.
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
5y
@Donovan George A POF is evidence that the Buyer on the contract Already has the cash in an account in Their name....anything else is some sort of loan preapproval.....totally different than already having the cash yourself.