I’m a wholeseller. I called an real estate agent today to look at a property that was vacant and in pre-forclosure status. not an REO. An the agents asked for proof of funds before she even showed the property. Is this something that will begin to be required by re agents now. Is there a work around for us wholesellers who can’t provide the proof of funds at this point of our careers. I know some agents don’t have our best interest heart so i may run into these obstacles. So is there a certain approach i need to take when or if that question arises again? Or do i need to just move to another property.
Hi,
Get your own real estate agent who works as needed as a member of your team, then just "Go see the property". If you like it you can write an offer and go from there.
Sometimes we use a regular mortgage approval from a regular lender to submit the offer, if it’s excepted we can then substitute an all cash early closing by ammending the contract and escrow instructions.
This is an easy way to get around the “Proof of Funds” and basically makes you look like a “end user” buyer.
Generally if your offer includes a “Loan Approval” the lenders do not ask for proof of down payment because a buyer could be going FHA 3% down.
Good Luck,
GR
I wouldn’t move to another property but I would see a different agent. Herbster
Several points here:
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Believe it or not, it may not actually be the agents fault. It’s possible (but unlikely) that the listing contract specifically states not to show the property to anyone who cannot provide proof of funds. if thats the case, then the agent has to follow the listing contract. or the agents a moron, either way…
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Getting a POF isn’t difficult these days, there are a number of transactional finance companies that can provide POF as a matter of business for no charge, with the hope that you use them to finance the double closing. I believe coastal funding offers these letter, but I’d google the company to be sure. Often times the sellers won’t even check the sources of the POF, so they’re about as worthless as the paper they’re written on, but whatever, you just need to show one to get your foot in the door.
OK, I get a little hot when I hear stories like yours. Agents want proof of funds so that they can control the situation and not waste their time with tire kickers. I have been a broker agent for 40 years and I will admit to you now that working with agents as an investor is not easy. I developed a fiduciary buyers broker agreement I use to work with agents. I tell them what I want, where I want it and how to make offers for me without my pre-approval. I have them make offers for me on FSBO’s and expired listing subject to my inspection. You need to throw a big net out there in your community and make trial offers on hundreds of properties to find the few that will produce a big cash profit for you.
You may have a better chance to work without the unfriendly help of agents.
Charles Parrish