Are you wholesaling and hesistant to make offers because of the $500-1K earnest deposits? Have you considered offering the option $10 contract? You can make lots of offers with the option contract. Obviously, it is more valuable with FSBO offers because you are working directly with the owner instead of the realtor. It is definatley less riskier and you can make alot more offers with little risk.
Ok, so how do you explain this to the owner selling the house? Basically, you want to tell him/her that you don't want the house but you have a network of buyers that would buy the house. Also you want to mention that whatever the difference is of the price is, you would get. If they ask how long you want to have it locked up for, you tell them for 4-6 weeks, but could be less. You can also mention that if they find a buyer you will rip up the contract.
It is a win/win situation for you. NO more $500-1K earnest deposits.
"If you cannot do great things, do small things in a great way.”
Napoleon Hill quote
But if you rip up the contract, aren't you defeating the purpose in locking it up for 30 days or whatever amount you have agreed on?
You can arrange it the way you want to with the seller, but I prefer to avoid the contract if the seller finds another buyer. In other words, I am not going to stop the seller from selling the house because I am still waiting for my buyer. From my standpoint, I only put $10.00 down and it's win win situation.
"If you cannot do great things, do small things in a great way.”
Napoleon Hill quote
When you say "Option $10 Contract" or use an option contract with 10 down, do you mean the lease with option to buy contract?
Thanks
This is the route that I've been using for a few weeks now, but it's not with an Option contract, just with an Intent to Purchase contract. Most other EMD I only offer to put down .002% of the total sale price. Sometimes less, depending on how much the sale price is.
Bryant Slade
Well if you allow them to show the house to other potential buyers,couldnt another investor step in and take your deal right out from under you?
If you have the property locked up -- they would not be showing the home to others... ???
How is the reception of you offering ten dollars? I would think many sellers would scoff (sp.) and balk at that... Just my thoughts...
I do see how it would allow you make many more offers -- potential would be wide open..
Good luck to everyone !!
Randy
Build_assests has a pretty sound idea there. You have to keep a wide open mindset here. He's not talking focusing all his attention on one property with that $10 EMD, but many properties. It's all in the numbers here. If and just if, a homeowner scoffs at the EMD of just $10, then it would seem to me that he(homeowner) was looking to just make a profit on the EMD alone. Am I making any sense here? Because either way you look at it, the EMD is just your way of saying that you're serious about buying the property(key word, buying). So with any EMD deposit I don't truely believe that the homeowner is actually looking forward to getting whatever little (chump change to him) amount of money you decide to put down as earnest money. Either way, that EMD isn't going to stop him from selling his house, it's just a little something to sweeten the pot of him expecting to get his house sold(SOLD!).
That's just my opinion.![Smiling Smiling](http://mail.deangraziosi.com/modules/smileys/packs/example/smile.png)
Bryant Slade
You are totally correct. I am referring to having many properties locked up and being able to do many deals at once without risking high earnest deposits.
Many newbies are waiting to get that $500-1K earnest and that may be stopping him/her from making deals. Keep in mind, that this option contract can be used on commercial properties too. The seller has NOTHING TO LOSE. Why would they refuse your option contract? You are doing them a favor by trying to sell their home.
"If you cannot do great things, do small things in a great way.”
Napoleon Hill quote
I'm still confused. an Option contract is what exactly?
The only thing in the forms section I see is the lease option. Is that what you are talking about??