When one has gotten a contract on a wholesale deal, from a private seller (not REO), is proof of funds required? If so, who needs it - the title companY? Is a prequal letter from a traditional mortgage broker sufficient? I imagine after a few requests (until my reserves are built up) a loan officer would get tired of providing proof of funds for deals that don’t actually fund because of assignment. Do hard money lenders mind providing a proof of funds - and do they charge for it?
I don’t know anyone with deep enough pockets to provide their bank statement (fraud?).
If anyone can clarify this process for me, I’d greatly appreciate it.
:banghead 30+ views and no answers. Am I missing something? :help
No seller will ever ask you for proof of funds, only Realtors.
If you want to avoid POF requirements, avoid realtors.
Title Companies never ask for Proof of Funds, or any that I ever heard of.
I never start Escrow until I have a buyer.
You might want to get a deposit from your buyer and check out his bank statement
if you have doubts on his ability to pay.
But, if a buyer starts Escrow its a good indication hes going to buy the property.
Get out there and find some deals and don’t sweat the details.
I agree with “R”.
Get out there and mix it up with what you know.
No one is asking for proof of funds on wholesale deals, especially if the house needs lots of work.
Like “R” said, YOU many want to ask your buyer for some type of proof that they can pay, but that’s up to you. Anyone that I’ve ever wholesaled a property to never had an issue with funds.
Good luck and keep posting. I started using this web site when I started in 2009 and it’s been a wealth of knowledge and motivation to keep moving.
Dave
Good answers “Show” and “R,” thanks for the advice.