I am making an offer for a house through the broker. I am very confused becaues the other side is asking for a proof of fund and the name and financial situation of the buyer!
Since I am wholesaling, shat should I put, and how can I prove my funds if I am only a starter with no money in my bank
You know I was asking my friend the same question the other day and he couldn’t give me a good answer. I need to know the same thing!
As a CAlifornia Real Estate agent and investor, I can say that anytime you deal with an agent they will want proof of funds and a letter of approval from a bank. Some agents will only accept letters from direct lenders like (Countrywide, BofA, etc.)…and pass on letters written by mortgage brokers. Remember, the agent has to protect the best interest of his/her client and just like you, they want to close the deal so they can get paid. Proof of funds could be a copy of a check faxed in along with your offer for say about($1,000 or more). With prices here in California, anything less than $1,000 they may not even give it a second look.
You may try getting an approval from a hard money lender because you never know if your investor will go through with the purchase. Ideally that is supposed to happen, but you could be left holding the bag, and with your name on the purchase contract, you’ll want to close the deal.
Have you not established a list of investors, contractors, end users, that are going to buy the property from you yet? You should. Now you can get a proof of funds letter from them. In other words, they should be paying CASH for your deal (including your ass’t fee) and if they have the cash or access to it and ready to buy from you–they are permitted to give you a proof of funds letter on their letterhead (whether they are a private party or company!!!)–I have wholesaled over 68 properties and can tell you that this works!!