I am a new wholesaler and I have a list of buyers who would like for me to find property for them. But when and how do you verify proof of funds. I want to make sure the buyers can afford a house either by cash or financing before I bring them a deal. What is the best way to do this?
:cool
Very easy do a credit check // check job //check with where they are living now
Ask questions of them and people ask people who know them //about them
Be a bit of a snoop it is your a-- on the block
Real Estate 001 - those are good ideas. But, how would you get their social security number so you can do a credit check? I don’t think any buyer will give you his/her social security number. I wouldn’t.
And in my opinion to check where they are living wouldn’t tell you much - they may be living in a nice house that may be going into foreclosure next week… :O)
I guess in the end of the day the best way to protect yourself is to have several buyers. If one doesn’t work out you can fall back on the others… Maybe…
Just my 2 cents. Have a great weekend!
What do you know if you don’t have anyone who knows them.?Like if you found them from the bandit signs.
Can somebody please chime in?
Thank you.
Verify proof of funds before you assign the deal, also get a deposit. Call the lender direct and verify with them if they are gonna fund the deal.
When you first meet with your potential buyers, before looking for homes for them ask for either a verification of cash funds (bank statement, or proof of credit line).
If they don’t have cash funds then ask for a preapproval letter from their lender. Note *This is different than a prequalification letter. Prequal letters are not nearly as reliable for indicating the buyers actual ability to buy.
I make it a habit to ask buyers “If I were to bring you a deal tommorow, which could happen, how long would it take you to close” if they aren’t ready to buy, then I am not ready to sell.
Good luck