I have a way around funds-proof requirements - BUT...

For wholesalers, here’s a way around funds proof requirements on those shortsale/REO deals - IF you know your buyer.

Use a standard Addendum and add him as co-buyer on your original purchase contract. Now you’re both buying the place, and the banks can use his funds proof and such instead of yours. After closing, you both go to a notary (best place is your bank or his) where he pays you cash in place of an assignment fee to deed all your interests in the property to him. Bingo. Done.

No hard-money hassles or expense. No BS. Pretty slick, eh?

Yeah - when you know your buyer. I’ve done it my last 2 deals. But my buyer for the current shortsale is someone new. He has no assurance that I will in fact deed my interest to him after COE, even though he knows I need the money.

We can’t write it into the contract, because it’s an after-COE arrangement. We could probably draw up an agteement and file it with the county recorder, but he’s kinda “meh” about that. And this current shorsale is a condo, for which ALL my buyers would be new.

Anyone got any suggestions? I need a bright idea to fix my bright idea.

Thanks in advance!

Is there anyone else using this approach. Will this approach get frowned upon by the banks?

Very easy deal. Just get the end buyer to put the 100% in escrow and used the end buyers funds to closed the deal.

So I guess you would wait until the end-buyers loan funded, right?. Do you than draw up another purchase agreement with You and the end-buyer and the seller? Is it ok if it happens that day?

(i may answer my own question) but… i guess since you as the investor are tying up a property you can xcl it and draw up a new one with you and end-buyer and seller, right???