How To Pre-Qualify New Investors ...

Hi,
Just be as classy as you can be and say "Show Me Your Proof of Funds". You don't want to waste your time finding properties for these investors and at the end they will say "Oh...I just bought few houses recently and i need sometime".
Good luck
Baria

Thank you Baria, for the prompt reply!

Do you think there is a "reasonable" amount of time to wait for it, or should it happen instantly from them if they are serious?

Can anyone also tell me what different ways this 'proof of funds' might come in ... besides showing me a copy of their bank account statement?

Appreciate it!

Some investors might get attitude if you were to ask for POF's, especially a bank statement to someone they don't know or is a newbie with no money/credit that is looking to do assignments or bird-dogs...What any TRUE INVESTOR will NOT mind is to give you their own information, whether personal or corporate, so YOU can RESEARCH them on their County Property Appraiser's & County Clerk's Websites AND SEE what they REALLY have Bought and/or Sold!This will Prove who are true investors & who are just Bull S---ers ! Remember
anyone that "Talks the Talk" and really does "Walk the Walk" is not just a "RA RA" Cheerleader, but is truly willing to share their achievements as well as their guidance.

I don't know if "everybody" was looking, but I am certainly paying attention.

Will be looking at the websites you provided, first thing in the morning!

Thanks, Erik.

P.S. Gotta ask ... what is that a picture of ... ???

Looks kinda like something they gave me a Polaroid of after my surgery (sorry!)

It did occur to me that it might be offensive to ask for the POF's right after

"hello" ... but (from a business stand point) I hoped it would merely show intent

to hit the ground running. I did not present myself as a NEWBIE ... but as someone

who does this (and nothing but this) full time.

While it gives me a WAF (my own acronym for WARM AND FUZZY !!!) to research them

and know their past history -- to see what they have previously bought and sold --

it also occurs to me that it's not quite the same thing as existing POF's and a

reassurance that they are "ready to go" again pronto.

For all I know, they could be maxed-out right now. Just like with credit.

Yes, no ? What do you think ?

...The key when dealing with real estate investors is like the old adage of "never judging a book by its cover." As a CPA and a real estate investor I have found this to be so true in the business world as well as the world of real estate investing.

I know several investors that when you meet you may believe they do not have money, and can even come across as not knowing as much. However, this is farthest from the truth. They are usually very sharp and can come up with as much as they need to close a deal.

The approach you may want to consider is build your buyers list with multiple layers of prospective buyers within the same areas. When you have a deal, you will then be able to determine who has the cash and can close the deal and have multiple buyers to offer it to. The better the deal, the more they will want in the future. Good luck with real estate investing. Believe and Achieve! - Joe

What you just said had to "sink in" a moment -- and then I realized it's no different than what I am already learning here (step out, a bit, on faith).

I have been focused on "not wasting my time" in case an investor is not
legitimate ... and not wanting to do work for them, all for nothing.

But you have made a light go on over my head! Thank you ...
(If I had known the light was going on, I would have put on a little make-up.)

And I realize that any work I do is REALLY FOR ME and the effort is never wasted to collect the buyers (even if a particular investor, or two, or three falls through.)

I understand what you mean, too, about appearances being deceiving. I often look like a million dollars, drive a Benz, and don't currently have a pot to pee in (at the moment)! But looking at me, you'd think I invented bird dogs. So, when I explain that I do this ... and nothing but this ... people assume I must be good at it. My plan now is to prove them right!

Thanks for the links you provided. Will visit them all.

Anything else you have to share (especially obvious things -- that are not so obvious) consider me a sponge!

Keep telling us what you know. We appreciate it!

I like the analogy of Texas Hold 'Em.

Gonna reserve judgment about that photo in the morning, when I'm more awake.

Scared to look at it too closely before going to sleep.

Thanks, again, for all of the feedback!

I turn into a pumpkin in 16 minutes.

Good luck everybody who chatted with me tonight ...

The first wholesaler I met I found quite by accident as I was "doing my homework" and calling FSBO bandit signs and he had no problems asking me for POF. I'm still on his email list.

What is funny though, is that I've only bought one investment property and I find myself on lots of wholesaler lists.....and when they ask me what I'm looking for I'm really honest and say I can't buy now until I sell my current property, but they email me what they have anyway. I like being in the loop and seeing what people have. When I'm ready to buy I can jump on the best deal.

Just my 2 cents....

Hi Margaret ~

Your story helps me because it lessens the intimidation factor of asking for POF.
It really is just a part of the whole process -- and anyone who gets upset is probably a wolf in investor's clothing.

When I get to the point where you are, I will like being in the loop too.

I was surprised that after one property, you are on many lists. But, I'm glad you shared that because it just expands my thinking of the way things go.

I might PM you one day, and chat about your other full time job with promotional products (if that's okay).

Maybe you didn't make it up ("pretender who might be a contender") but I'm just hearing it for the first time -- and I get it.

Thanks for the encouragement not to be discouraged, and I will just cross that bridge when I get to it, and move on (as necessary)...

"Things are seldom what they seem, skim milk masquerades as cream."

(Partial lyric from an old song)

I .

Dear Erik ~

I think we're going to need to get you into a 12-step program ...

(so that we can go back to discussing real estate)

Have you been watching too much World Series of Poker on late night television?

I'm "all in" if we're talking about real estate.

What on earth are you talking about?

I'm new. I have never made any decision that "reading your posts are a waste of time". Relax. I simply haven't gotten to them yet. LOL

I'm happy you and Curtis understand each other, at a minimum.

For the record, when I write an offer on something and the Realtor asks for POF ... they receive it that day. So, sure. I am ready (and willing) to supply that information because I put all ducks in a row when I am serious.

It's not dodge ball to me.

No one is challenging your right to have an opinion.
(On the contrary, this forum is to "ask" everyone's opinion!)

And nor am I holding my cards close to my vest when it's time to show them.

Back to real estate ...

Would anyone like to share an awkward reaction they got

(and how they handled it)

when asking for proof of funds?

Hey justplain-e, I want to ask you if connectedinvestors.com is a good source for finding buyers, because i am new to REI and building my buyers list and need some help. And what do you think about their websites they offer and in general it worths spending so much money on it?

Thank you in advance!

DGF Sergy

I would like to apologize to -Erik for the public message i sent in response to one of his previous messages I'm new to using all the links on here and E if I would have known I would surley have sent that private.

So once again I AM TRULY SORRY! and the message will be deleted!

In business sometimes when your dealing with a potential customer. It can be frustrating to find out if they are telling the truth or just getting a feel on what you might be able to provide. Its kinda like betting all in before the flop of Texas holdem. Just because you have pocket Aces It doesn't mean He doesn't have pocket Kings and the flop just brought up a third.

My point:
If your going to check your buyers out online or through your county recorders office. and you dont find anything on him. he Just may have a different way of doing things like assigning to a third. Or perhaps he own another company.
If he is on the Up and Up Start the paper work trail and make sure his POF or Bank Statements are provided. Your not going to offend him. If He is a real business man.

Either you have a buyers list or you don't!!! Don't mislead anyone, you'll get called to the mat at some point in time.

Never ever allow anyone to know your new. You either know how to do this business or you don't. It's not rocket science.

The difference between other educators and Dean is that while they both write about the same subjects and some of the same techniques, Dean demystifies the mysterious. He takes difficult subjects and brings them down to the A-B-C. This makes it very easy to know this business. Don't be surprised if you know more than some investors.

Here is a fact that cannot be denied. Cash buyer investors who are active are widely known in the offices of closing agents. You can always ask who they use to close their deals and call the office manager, saying that you are about to do a deal with that investor and wanted to know if they ever heard of them and if they actually are a cash buyer.

The title agent won't be able to go into specifics about the buyers funding but can give you a good idea of who your dealing with.

Thanks CBelt ...

I keep checking this thread for new posts because I know that all of the "perspective" that is shared can be picked from, and rolled into a working scenario.

I, too, thought that someone should just provide POF without any fanfare if they're a legitimate business person. At the same time, I know that some issues are more delicate than others. For me, the best overall advice came from Indiana Joe ... who essentially advised: Just keep building your own list (buyers / sellers) so that it won't matter so much if someone flakes out --- and to just move on. This is my goal. I recognize that the work I put into it is for "me" and not "them".

But, it's still disappointing (of course) when the other party doesn't turn out to be real. I'm encountering some of that, and trying to chalk it up as part of the process!

Hi I saw you sharing on a post and you commented saying that finding buyers is easy. What's the best ways to find them. Thats the part I'd like to get better at. Thanks in advance for sharing your wisdom.

Deshone

Sorry guys that last message of mine was directed towards just plan-e, but anyone that wants to share is welcome.

Give the basics, no address, and you say very clearly, with a tone of matter of fact "i'm sure you know I can't go any farther until I see a legit POF and bank statement with corporate info as well..."

Any hesitation weeds out the frauds.