Why Serious Buyers Don’t Lead With Proof of Funds (And How Deals Actually Get Done)

Why Serious Buyers Don’t Lead With Proof of Funds (And How Deals Actually Get Done)

Why Serious Buyers Don’t Lead With Proof of Funds (And How Deals Actually Get Done)

By Jai Thompson

Appreciate the recognition, Paul.
Consistent action, clean structure, and stewardship always win long-term.
Grateful to be part of a room that values execution.


Who I Am (So You Have Context)

My name is Jai Thompson.
I manage a private equity operation deploying 13–18 million per quarter across multiple asset classes, including:

  • Multifamily

  • Mixed-use

  • Hospitality and hotels

  • Single-tenant and small commercial

  • Residential income portfolios

Our group closes under 23 days EDD when structure aligns, and we tithe 10 percent back to the communities we serve because capital without stewardship is incomplete.

I’m writing this for brokers and agents who want real closings, not gatekeeping theater.


The Core Truth: Private Equity Capital Is Not Idle Money

In real private equity, capital is allocated, not parked.

That means:

  • Funds are earmarked after underwriting, not before

  • Capital tied up without diligence becomes dead capital

  • Dead capital produces:

    • No yield

    • No velocity

    • No stewardship

That is not investing.
That is amateur theater.


Why Early Proof of Funds Requests Are a Red Flag

When proof of funds is requested before basic diligence such as:

  • Rent roll

  • T12

  • Expense breakdown

  • Seller motivation

  • Structural flexibility

The message being sent is:

“I want certainty from the buyer, but I’m not willing to provide clarity.”

That creates asymmetric risk, and serious buyers do not operate that way.


The Triangle That Actually Closes Deals

This framework—taught well by Coach Marco—explains why proof of funds becomes unnecessary when positioned correctly.

The Triangle:

Identity → Process → Capital

Not:
Capital → Maybe → Hope

We lead with:

  • Identity: who we are and how we operate

  • Process: structure, escrow, and timeline

  • Capital: allocated only after diligence confirms fit

When the triangle is set correctly, proof of funds becomes irrelevant.


Why POF Before Vetting Makes No Sense in Private Equity

In the private equity world:

  • Capital commitments often last 12 months or more

  • Once earmarked, funds cannot be freely redeployed

  • Allocating capital to an unvetted asset is a fiduciary violation

So declining early proof of funds is not aggressive.
It is responsible capital stewardship.

If a deal requires proof of funds before information, it is not a deal.
It is a gatekeeping exercise.


How I Explain This Calmly (What I Actually Say)

“We operate as a private equity group.
Capital is deployed after underwriting, not before.

Tying up funds on an asset that hasn’t been vetted would freeze that capital for up to a year, which isn’t how institutional capital works.

If a seller requires proof of funds before sharing basic diligence, that tells us the deal isn’t ready for a serious buyer.”

No emotion.
No debate.
Just reality.


Broker Email Script (Feel Free to Use)

Subject: Re: Proof of funds request

Appreciate you reaching out.

We don’t issue proof of funds prior to underwriting.
We operate as a private equity group, and capital is allocated only after diligence confirms structure and fit.

If the seller is open to sharing the rent roll, T12, and expense details, we can move quickly and outline next steps.

If proof of funds is required before that stage, this one likely isn’t a fit for us.

Either way, appreciate the clarity.


Short Text Version

Appreciate it.
We don’t provide POF before underwriting—capital is allocated after diligence.
If the seller is flexible on structure and info, we can move fast.
If not, no worries at all.


Why This Approach Actually Helps Brokers Win

Here’s the paradox most people miss:

  • Those demanding early proof of funds often don’t control the seller

  • Sellers who want certainty care about:

    • Process

    • Speed

    • Closing

Not screenshots of bank balances.

This stance filters noise, attracts real sellers, and leads to cleaner closings.


Final Thought

I’m not avoiding proof of funds.

I’m saying:

Capital follows clarity — not the other way around.

That’s not defensive.
That’s institutional.

And it’s why the right deals find us—and close.


Contact
Jai Thompson
MrJai@kingjairealestategroup.zohodesk.com

Structure over sacrifice.
Stewardship over struggle.
Every deal builds legacy.