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Dec 28

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Real Estate Investing- When to Get Your Cash Buyer’s Proof of Funds

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woman-screaming-show-me-the-money-jerry-maguire-textAs you build your Buyer’s List you are going to be adding buyers that are genuine and buyers that are simply tire kicking. It’s just the way it is. I have a buyers list of  over 7,000 buyers across the Country and when I tell you that only about 70% of them are actually buyers I am not exaggerating. Truth is that maybe 50% out of the 70% actually buy from me. This is why it is so important to continually build your Buyer’s List as you need to increase the number of actually buyers on your list.

Now many if not most of your buyers on your list will consist of wholesalers looking to flip your property over to one of their buyers. But that’s ok,  I keep wholesalers on my list because wholesalers have buyers so in essence I am adding genuine buyers to my list through them.

Never ask a new buyer to show proof that he can buy (POF Proof of funds) before he shows interest in a particular property as you can discourage him from working with you. Most people do not appreciate baring their assets to others unless they are really serious about buying a particular property. So having them show proof prematurely can be a turn off for them. I suggest that you simply keeping adding buyers to your list and only proof their funds when they are ready to purchase one of your properties.

One way to see if a buyer is genuine is to search your County tax records website for their name or their investment company name. Many County tax records are now available online so call your County Tax office and ask for their website or do a google search for tax records in your County. When you put their name into the website it will bring up all of their properties that they own in a particular County. Genuine buyers will usually own several pieces of real estate. This is a great way to see if a certain buyer on your list is an actual buyer.

I only use the tax records to give me a general feel for a buyer. If a buyer looks at one of my properties and wants to go to contract to purchase I will ask for a POF or Proof of funds from their bank that proves he has the funds to purchase the property. Once he supplies this POF I will call the bank listed on the POF to verify the funds.

Again I always wait until a buyer is interested in purchasing one of my properties before I ask for a POF. If he cannot proof up I will not move forward with the contract. I do not want to hold up one of my properties with a buyer who cannot perform. If I allow a buyer to put my property under contract without proving that he can buy it puts me at risk of not selling the property to another buyer before my contract with the seller runs out.

 

If you need help building your Buyer’s List check out my post How I built a massive Cash Buyer’s list with AWeber.

 

To Your Success,
Carol Stinson

About the author

cstinson

Carol Stinson is a Real Estate Mentor, Author and Entrepreneur who continues to thrive in today's real estate market. Her concept of success is to never stop learning new techniques and then put what you learn into action expecting results. She is dedicated to helping others succeed by sharing what works in today's real estate market. Her strategies are effective, her techniques work and she is always updating them to conform to the ever changing real estate market.

Carol's biggest passion is people! Her love for others and dedication to help them succeed is genuine and ongoing. She created Real Wholesaling in an effort to help others find their way to financial freedom through real estate.

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