Wholesalers live on credibility: sellers want to know the deposit will wire and the deal will close. Proof of funds for wholesalers serves two jobs — making your offer believable to the seller, and vetting whether your end buyer can actually perform before you assign.
Below is how POF fits a wholesale deal from offer through assignment. For end-buyer loan programs see end-buyer financing. For the full financing pipeline see wholesale deal financing. If a vetted buyer’s financing dies, see wholesale buyer can’t close.
Request a POF letter
- Request proof of funds — submit the property and get a letter for your offer
- How hard money POF works — what the letter means and what it does not guarantee
Seller-side POF vs. buyer vetting
| Audience | What POF proves | Where to go |
|---|---|---|
| Seller / listing agent | You can perform on your contract with the seller | POF request per property |
| End buyer (before assignment) | Buyer has a credible path to closing capital | Lender-verified POF — not generic templates |
Both matter; they are not interchangeable. Request seller-facing letters per property — not one generic letter reused on unrelated deals.
End-buyer POF — vetting before assignment
The expensive mistake: accepting a buyer’s POF without lender verification. Generic templates, stale letters, and screenshot bank balances fail when underwriting runs. Before assignment:
- Confirm buyer spoke with an asset-based lender on this property type
- Request POF from the same lender who will underwrite — or submit buyer for pre-conversation
- Match buyer plan to product — flip vs. rental vs. STR — see end-buyer financing
- Have a backup plan when the end buyer does not yet have approved financing
Red flags in buyer POF documents
- Generic letter without property address or amount
- Bank screenshot without lender letterhead
- POF dated months before current contract
- Buyer refuses lender contact or pre-underwriting call
- Buyer plan (flip vs. rental) does not match submitted POF product
When red flags are absent and financing still fails, that is a Second Look problem — not necessarily a bad buyer.
POF vs. loan approval — set expectations
A POF letter states capital is available for a described acquisition. It is not a loan commitment. Asset-based underwriting still runs on ARV, LTC, DSCR, exit, and liquidity before any wire.
Wholesalers who treat POF as approval get surprised when the end buyer’s lender declines late. Set buyer expectations: POF opens the door; underwriting closes the deal.
When end-buyer financing falls through anyway
If the buyer is real and vetted but real estate financing fell through, do not reassign first — see wholesale buyer can’t close for the rescue workflow. Submit Second Look with decline reason and original term sheet.
Where POF fits in the wholesale pipeline
| Stage | Need | Resource |
|---|---|---|
| Offer | Seller POF | POF request |
| Contract | Earnest money | EMD funding |
| Exit | End buyer purchase loan | End-buyer financing |
| Double close | Same-day seller-side capital | Transactional funding |
| Failure | Rescue before reassignment | Wholesale buyer can’t close |
Full overview: wholesale deal financing
Illinois and DMV wholesale context
Wholesale rules vary by state — disclosure, assignment, and double-close conventions differ. POF credibility matters more in competitive markets where sellers have backup offers. See Illinois wholesaling guide and DMV wholesaling guide for regional context.
Pre-assignment POF checklist
| Step | Pass criteria |
|---|---|
| Property on letter | Address or legal description matches contract |
| Amount | Covers acquisition + assignment economics |
| Issuing lender | Verifiable — not screenshot-only |
| Product match | Flip POF for flip buyer; DSCR path for hold buyer |
| Freshness | Dated within 30 days of assignment |
| Lender contact | Buyer allows pre-underwriting call |
Failed vetting is cheaper than a wholesale buyer can’t close rescue at day 18.
Seller-facing vs. buyer-facing letters
| Letter type | Audience | Reuse rule |
|---|---|---|
| Seller POF | Listing agent / seller | One property per letter |
| Buyer vetting POF | Wholesaler internal | Verify with lender contact |
| Transactional letter | A-leg title | Double close only — not B-leg purchase |
Reusing a seller POF as buyer proof is the fastest way to assign to a buyer who cannot perform.
Illustration: a letter amount that does not cover the deal
This sketch is not a letter Jaken Finance Group has issued. The proof-of-funds letter states $200,000. The purchase contract is $175,000. Rehab is $40,000. All-in cost is $215,000. The letter is $15,000 short of all-in cost even though it is $25,000 above the purchase price. A seller who reads only the purchase price may think the letter is heavy. A lender who underwrites cost will not.
Supported after-repair value in the sketch is $260,000. Seventy-five percent of that value is $195,000. One hundred percent of cost would be $215,000, so the lower cap is $195,000. Cash to complete the $215,000 cost is $20,000. A $200,000 letter does not identify that $20,000, and it does not prove the $195,000 loan. It states a dollar figure. Underwriting still has to support the value, the budget, and the exit.
On a qualified fix-and-flip, Jaken Finance Group can fund up to 100 percent of cost and still caps the loan at 75 percent of after-repair value. The rate is interest-only from 8.99 percent to 13.5 percent. The term is 6 to 12 months. A complete file can close in 7 to 10 business days. If the buyer will hold without a heavy rehab, a bridge goes up to 90 percent of the purchase price, for 12 to 24 months, on that same rate range and the same 7 to 10 day window. Ninety percent of the $175,000 purchase is $157,500, which leaves the buyer to bring the rest of the price. A DSCR loan, once the property is rented, is quoted from 5.75 percent to 10.5 percent and closes in about 14 business days.
What the letter should say, and what it cannot say
A useful wholesale letter names the property, or a clear description if the address is not final, the amount, the date, and the company issuing it. It says capital is available for a described acquisition. It does not say the loan is approved, the rate is locked, or the closing is guaranteed. Those sentences belong on a commitment after underwriting, and many files never receive a separate commitment before the closing disclosure. Treat the letter as a start.
Ask these questions before you assign:
- Does the amount cover purchase only, or purchase plus rehab and the assignment fee?
- Is the date inside 30 days of the assignment you are about to sign?
- Will the issuer speak to you, or only to the buyer?
- Is the buyer an LLC that will take title, and is that entity the name on the letter?
- Is the exit a flip, a bridge, or a rental? A rental letter does not underwrite a gut rehab.
A bank screenshot can sit behind a letter. It cannot replace one. Screenshots omit the account holder, the date, and whether the funds are already promised to another contract. If the buyer refuses a call with the issuer, stop. The cost of a bad assignment shows up later on wholesale buyer can’t close.
Seller letters and buyer letters do different jobs
Your seller-facing letter supports the offer you made. It should match that contract’s address and a price at least as high as your purchase. Reusing it on a second house is how agents lose trust. Order a new letter when the address changes.
The buyer’s letter supports your decision to assign. It should match the buyer’s price, which is your price plus the fee, and the product they will actually close. A buyer who will double-close also needs the A-leg funding discussed on transactional funding. That A-leg letter is not proof the buyer can purchase and hold.
Freddie Mac’s 30-year fixed rate was 7.28 percent for the week of October 1, 2026, and 7.03 percent for the week of September 24, 2026, on FRED MORTGAGE30US. A consumer pre-approval near that rate is evidence a person might buy a home to live in. It is not asset-based proof of funds for an investment contract on a short wholesale deadline. Jaken Finance Group’s letters address non-owner-occupied investment property.
Before you send the letter to the listing agent
- Address or legal description matches the offer.
- Amount is at least the contract price you are signing.
- Date is current, and you can explain any amount that excludes rehab.
- Your name or your company’s name matches the buyer on the contract.
- You have told the agent the letter is not a loan approval.
- You know the A-side deadline and whether earnest money is a separate wire. See EMD funding if the deposit, not the purchase price, is the cash you need.
One letter does not travel to the next house
A $200,000 letter written for the $175,000 contract above is about that property. The next offer, at $210,000 on a different street, is already $10,000 above the letter before any rehab is added. Forwarding the PDF makes the second offer look funded when the amount does not cover the price. Order a new letter when the address or the price changes. If you submit three offers in one week, you need three letters, each dated and each matched to one contract.
Also match the letter to the fee. If a buyer is paying your $175,000 contract plus a $12,000 assignment, the buyer’s price is $187,000. A letter that only recites $175,000 describes your contract, not the buyer’s. Ask the issuer to state the amount the buyer must actually bring to the purchase. Then compare that figure with rehab, using the cap math in the illustration above, before you sign the assignment.
Who is allowed to rely on it
The seller may rely on your letter only for the offer it names. The end buyer may not hand that same PDF to their own seller on a different deal and call it proof they can perform. If you are assigning, ask the buyer’s lender to issue a separate letter to you, with the buyer’s price on it. Give the listing agent your letter, and keep the buyer’s letter in your file. Mixing the two is how a $200,000 seller letter gets treated as if it proved a buyer’s $215,000 all-in cost.
When the agent calls the number on the letter, answer with the property address and the amount, and say plainly that underwriting is still ahead. A letter that nobody at the issuer will confirm is a template. Templates fail on the day title asks for funds. Build the confirm call into your process before you accept an assignment fee you cannot replace.
Call (833) 264-7776 if the seller wants a letter today and you already have the contract draft. The request form is the proof of funds request. The full stage map is wholesale deal financing.
Need a letter for your next offer? Request proof of funds · Buyer financing failed? Wholesale buyer can’t close