Transcription
Do you need a Proof of Funds for your wholesale deal?
In today's video, I'm going to cover exactly how to get a Proof of Funds for free for wholesaling without having to use any software and without having to pay for it. I'll also cover what is a Proof of Funds Letter so you know exactly what it is, because a lot of people don't know what it is, why it's important. And then we'll get into exactly how to get your Proof of Funds for free. And we'll cover two different ways on how to do that in today's video. So let's get right into it.
So first off, what is a Proof of Funds? Well, a Proof of Funds can be a letter, a bank statement, a screenshot of a bank account showing that you have access to funds in order to close a deal. When wholesaling houses on the market and with real estate agents, they need to see this documentation so that you can show proof that you have the funds to purchase the deal. Otherwise, your offer's not going to be taken seriously, and they'll go with another offer that does have a Proof of Funds. Now, you do need a Proof of Funds with every single offer you send. All right? So don't be sending offers without a Proof of Funds because you'll be looking like an amateur. This Proof of Funds, once again, can be a PDF, bank statement, screenshot. And what's really important is that this Proof of Funds is up to date in the last 30 days. You don't want a Proof of Funds or a bank statement from two years ago or one year ago or even six months ago. And we at Real Estate Skills, we like to refer to the Proof of Funds as the golden ticket. Okay? This is something that allows you to submit offers. It's a means to an end to submit an offer. By no means if you get a Proof of Funds does it mean you're going to get a deal. No. But if you do get a Proof of Funds, it makes your offer more valid and taken much more seriously and increases the quality of your offer versus amateur wholesalers who do not know how to get a Proof of Funds Letter. So this is why it's important.
If you want to be a pro at this game, you need a Proof of Funds with each and every offer. What the amateurs do is they don't know how to get a Proof of Funds Letter and they submit offers on the market with real estate agents without Proof of Funds. Now, this is a big no-no because when you do this, an agent's going to be thinking why the heck didn't so and so send me a Proof of Funds Letter with their offer? Do they have the funds to even close on the deal? Are they credible? And so when real estate agents ask these amateurs, "Hey, where's your Proof of Funds?" What happens is this amateur then goes radio silent. They don't know how to get a Proof of Funds or how to send it or why to send it with their offer. If you want to be a pro at this game, a pro at wholesaling real estate, you have to know how to get these Proof of Funds every single time and for every single offer you send because now the agent is going to be thinking when you send a Proof of Funds with your offer, oh, Alex knows what he's doing. I don't need to ask him for Proof of Funds. He obviously has access to the funds and the financial ability to close on the deal. That's very important.
So a lot of people who have never wholesaled a house on the market with real estate agents don't understand the context and the thinking of a real estate agent. But since we've done hundreds of deals on the market and for the last decade, we understand how they think. A lot of our partners, myself, we've been licensed at one point or another, so we know how important it is to send a Proof of Funds with each and every offer. And understand, if you're wholesaling houses on the market right now without sending a Proof of Funds on each and every offer, the investor or my students, myself, anyone who's submitting an offer with a Proof of Funds is going to beat you out pretty much every single time because the credibility and quality of their offer is going to be so much higher. Right? The agent's not going to have any questions about that offer because we've proven we have the financial ability to close on the deal. Hence, why we call it the golden ticket.
Now, you need to understand real estate agents are busy people. They may have 10 listings at a time. They may be driving buyers around to go check out property. So when you can take one, two, three things off their plate and have them worry about less things, you'll make their life easier. And they're going to want to work with you today on this deal because you're a professional and on deals in the future because you're someone that they want to work with. And in this business, it's very important to build relationships with real estate agents because they're in the trenches every single day. They're finding new distressed houses to put on the MLS. And so when you can build a relationship and trust and credibility with one real estate agent and you make their life easier, chances are they're going to have another house on the market that is distressed. And if you're the best person that they want to work with, the best person that responds soon, quickly, that provides all the necessary documentation, like the Proof of Funds with your offer, guess what? They're going to want to work with you again and again and again. And it's these little things that turn you into a great wholesaler. It's these little things that make people choose your offer and choose to work with you versus another wholesaler in this business.
All right, now that we covered the what is a Proof of Funds Letter and the why behind it, why it's important, now let's get into two ways on how to get your Proof of Funds for free and instantly online. And what I've done too is I've provided the step-by-step instructions on how to do this. You can download it for free at RealEstateSkills.com/proof.
Now let's get right into it. So first off, what you want to do is go to doubleclose.com. And when you're at doubleclose.com, what this company is is they're a transactional lender. And they lend funds to real estate investors. And they're in the business of lending funds to real estate investors. So a big incentive for them is to give Proof of Funds for free, showing that you have access to these funds to close on a deal. What's important to understand is they're not going to do a credit check. All right? They're not going to check your credit. They're going to send this to you instantly. It doesn't mean that you have to close the deal with these funds. It doesn't mean that at all. Remember, the Proof of Funds is a means to an end to submit your offer and to be taken seriously as a real estate agent. When we're wholesaling real estate, you're not going to buy the deal. If you looked at my other videos, How to Get Started Wholesaling Real Estate in 21 Days or Less, you understand we're typically assigning the contract. We're selling the contract rights to a real estate investor, a cash buyer, a fix-and-flipper who's going to pay you on average about $10,000 per deal for this process. So don't worry, when you use this Proof of Funds, you don't have to buy the property. We're still wholesaling the house. And just wanted to cover that context before we dive right in. Okay? So we go to doubleclose.com. And what you want to do is right here, click Proof of Funds Request. Okay? Now, keep in mind, these people change their websites from time to time, so if you're looking at this video a year from now, they change their website a little bit, just click around, find Proof of Funds Requests and you'll be able to use that. And now what we want to do is we actually have a form that we can fill out all the necessary information about our particular deal and about ourselves in order to get this Proof of Funds. So let's get right into it. I'll show you exactly how to fill this out. And this is what I've used, my students have used to successfully wholesale deals and to get their offers accepted on the market with real estate agents by using this Proof of Funds Letter, okay?
So first off, we want to do is put in today's date, whatever that is for you, and then put your name as the borrower name. So I'll just go ahead say Alex Martinez. Now, you can go ahead and put in your phone number as well. I'll just do this for now. Put your actual phone number in there though, that way it's just professional. You put your business phone number in there. And then you want to put your business email address in here too. So I'll go ahead. I'll just use a demo account. And don't put a spam email in here because they're going to send you the Proof of Funds via email instantly. It's going to come directly to your email. So send an email that you actually use so you can get this Proof of Funds and you can use it along with your offer. Okay? Now, under address, don't put your own address or your house address. This is where you want to put your subject property, the property you want to put an offer on or that you're putting an offer on. Input that address here, whatever that property is, the house you want to wholesale. Okay? So put in address. So put in the address, the city name, the state, and the zip code. And now you want to put in the purchase price of the property. So wherever you plan on submitting that offer, put that offer price in here as the purchase price because this Proof of Funds is going to show you have access to that offer amount for this deal. So you don't want to put this purchase price, this offer price you're putting in here lower than what you're actually offering. You can put it exactly at where you're offering and that way when the agent sees your offer and they see the Proof of Funds, it matches together and there's no questions asked. It shows that you have access to the funds, the financial ability to close this deal. So let's just say this property, I was offering $500,000 on it. Now, under what name or entity will you take title, here's where you can put your LLC or your business name. If you don't have a business, that's completely fine at this time. A lot of my clients and students who started out didn't have a business, would wholesale houses in their personal name, and then use those proceeds to actually start their business. So if you don't have a business name, you don't have an LLC, just put your first and last name right here. So if I didn't have an LLC, I would just put Alex Martinez here. But let's just use a LLC name right now. There we go. All right. So we have everything in here. Now, click Get My Letter. All right. Now, this will send the letter to you via email. And if you don't see it in your email box pretty quickly, within two, three, four, five minutes, check your spam folder just in case, see if it went in there. But I'll go ahead, I'll pull up the Proof of Funds and show you exactly how it looks now.
So this came from doubleclose.com, this Proof of Funds, and I'll read it for you. So this is something let's make very clear, when you submit an offer to a real estate agent on the MLS, on the market and you have your actual offer terms you're sending to them, you attach this Proof of Funds with your offer terms so that that agent can write up the offer for you. Everything is there that you need, all the documentation showing you have access to the funds and your offer terms for the agent to fill that contract. This is what you want to send to that agent so they don't have to ask you. This is the document you now got very, very quickly and instantly. And this is something that makes you a pro from day one, rather than someone scrambling around wondering how the heck do I get a Proof of Funds? Now you know at least one way how to get a Proof of Funds. So I'll read this real quick. Says to whom it may concern, this letter's to inform you that Diamond Home Partners, LLC has been approved for a private real estate loan in the amount of 500,000 for the purchase of 1234 Hearst Drive, San Diego, California 92109. This approval is subject to the following conditions, review and approval of ALTA title report on the subject property subject to final underwriting. FundSmart is prepared to close a transaction within two business days of obtaining and approving the ALTA title commitment. This approval expires on September 24, 2022. Please contact the undersigned directly with questions or concerns. All right. So this is the Proof of Funds Letter. And what this company has done on this Proof of Funds, they just require two conditions in order to fund the deal. All right? So this is basically as good as cash. When we use private money lenders and hard money lenders, which we've done for a lot of fix-and-flip deals, it's as good as cash, right? We're just getting a loan from someone else. But as you can see, there's very, very little contingencies or any red tape on this at all. It just says they need to review the title report, which is very, very standard, make sure there's no liens on the property, credit card liens, that this owner owes a credit card debt or card bill or something they haven't paid over time just to make sure it's a clean title report. And then just subject to final underwriting. This is giving this lender outs so that they don't have to fund every single deal. They're giving themselves outs, which is important as a real estate investor. So you can do this virtually risk-free. So once again, this is something we've used, our students have used to successfully wholesale houses and to get your offer approved and accepted from real estate agents.
So that was one way on how to get a Proof of Funds instantly. So congratulations, you know how to do that. You know how to get a Proof of Funds in record-breaking time. We didn't use any custom software. You didn't have to pay for this. You didn't even have to call anyone. You just use this online website, which is pretty cool.
All right. Now let's get into the second way on how to get a Proof of Funds Letter online, okay? Let's go to besttransactionfunding.com now, all right? Now, once you're on besttransactionfunding.com, it's very similar to Double Close. They are, once again, a transactional lender. They're in the business of lending capital to real estate investors, wholesalers, fix-and-flippers to close deals. And that is why they provide Proof of Funds so that if you need to use them in the future, guess what? You can use them. But in order to get a Proof of Funds from this website instantly and for free, all we have to do is go to Proof of Funds at the top, click that. Now, right here in the bottom left, click Proof of Funds POF. And similar to the other website, now we just got to fill out this particular form online. So first name, just fill out your name, company name, telephone number. Put your business phone number in here. Put your business email address in here. Now, if we're wholesaling houses, which you're starting out and doing that, that's considered residential. It says property info type. So keep it on residential when we're wholesaling houses. If you're wholesaling commercial real estate buildings, you can put it on commercial, but put residential if you're wholesaling a house. Put the property address you're wholesaling in here once again. Put the city name of that property. Choose the state of that property and the zip code. Now, for your offer, go ahead and put your offer price. So once again, for offer, 500,000. I'll put 500,000 with a comma in there. And right here, there's an option, says letter type. You can have company and name. This is the most credible. It's going to have your company name and your personal name. You can put company only if you just want your company name in there and name only. So you can change that around. Now, sometimes we see when you select name only, let's say you don't have a business, here's just a quick tip, and you don't put a business name and company name right there, it's not there, just go ahead and put one space. Just one space like that and that way it will actually send your form in if you don't have a business. But I'll just use this business name for now. And then go ahead read these disclosures, I've already read them before, and accept them if you accept them. And then click submit. All right, boom, says thank you, your information was received. And once again, it's going to send you a Proof of Funds Letter instantly. So let's go take a look at that Proof of Funds Letter so you can see exactly how it looks.
And we have it right here. So it comes from Plan D Investments, has all the information. And so it says to whom it may concern, this is to inform you that Plan D Investments, LLC, private lender has reviewed the information provided and is pleased to notify you that on behalf of Diamond Home Partners, LLC, Alex Martinez, agent, unencumbered liquid funds are available to close on the above-referenced property for the purchase price of 500,000 as of the date of this letter subject to final underwriting. Should you have any questions, please feel free to contact us at this particular phone number.
So guys, there we have it. I just showed you two ways on how to get a Proof of Funds Letter for wholesaling for free instantly without having to pay anything, without any software, and just to do it immediately so you can send it with each and every offer. You don't need to get two Proof of Funds for one deal. Just use one of these companies, whichever one you prefer, and submit that along with your offer terms and your offer to the real estate agent. And this will allow you to have a high-quality offer that gets accepted, that shows you're credible, and that you're able to close this deal. And as a wholesaler, this will allow you to get deals under contract, which you can then wholesale to cash buyers like fix-and-flippers that can pay you wholesale fees of 10, 15, 20, $30,000 per deal. And don't forget guys, you can go ahead and download the two ways to get your Proof of Funds instantly at realestateskills.com/proof. We'll cover exactly how to get your Proof of Funds so you, your team always knows exactly how to get it and you don't have to try and find this video again or remember these websites. You can just print this out, always have it, and get these Proof of Funds instantly for each and every offer so you can wholesale houses every single week, every single month, and work your way towards building a successful wholesaling business.
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