OfflineOk looks like Another dead end I've ran into again , The Agent I'm with e-mailed me today telling me that I'll need to come up with $630K As A Deposit to lock up My First deal , Now I'm not sure if this sounds right cause In Deans Book He never says you need money to Lock up A Assignment Deal Or at least from what I thought all you needed to do was Lock up the property by Signing papers w/ The Seller & Buyer & the Buyer goes to the closing & buys your Contract out & you receive A fee , He claims its For The Escow Company , But I've talked to A few Escow Companys & visited A Few Websites & none that I know of ask for A Large sum of Money like $630K , I've seen At least Fees that are $100 to $200 Or $300 But Never $630K just to start Or Open A Escow Account with A Company , & I'm not sure if its Because The Home is A Million Home , But I found the $630K just to Lock up A property & open A Escrow Account to be A little Fishy .
So I'm on here to ask My DG Family Is it Normal for A RE Agent to Ask you for $630K just to Lock up A Property & For Them to open up A Escrow Account in your Name , Is this Normal or does this sound like A Scam ?
cause I'm like I don't Have The Money NO Lender Will give me Anything My Credit is BAD! I don't Even think A Hard Money Lender Or A Private Money Lender would accept Or give me anything hell I don't even have a dime in my bank account so i'm like how the hell could i get $630K from ..........LOL
please let me knoe what you think , & I'm like I should ask him Why? can't the seller put up $630K to help me out since I'm helping them sell their home ...lol
It is a 1m dollar house and what was the price you agreed on? The agent is calling your card to see if your serious or just testing the waters.
The 630k fee seems way out of the park, no doubt.
Do you have an end buyer lined up for the assignment?
Do you have or can you obtain a POF letter?
Better re think your steps and either go on with the deal or bail if you have nothing set up to move on this...Jan
It doesn't matter what the purchase price of the house is; the title company doesn't ask for any money, even their fees(that they get at closing, & only if the property closes, if it doesn't they get paid $0). The EMD that accompanies the contract & goes to the title company & into escrow is negotiated with the offering price. You might want to give a higher EMD to show the buyer you're serious & maybe that could help on a multiple offer situation, but even on a million dollar house with a cash offer I would not give more than 5% to 10% down.
Like Jan stated, if you have POF, a small deposit is all that's needed.
Whats A POF ? & A EMD ?
@ Jan , Thats what I was thinking , I was thinking he maybe trying to see if I'm serious about the property , but to ask for $630K is a little to much .
"proof of funds"
Not sure what EMD is....someone else help here?
"Make it an AWESOME day! (Who else is going to do it for you?)" - Mike Spillman
"As long as there is breath there is hope!" - Mike Spillman
Earnest Money Deposit
Ta-dahhhhh!
"Make it an AWESOME day! (Who else is going to do it for you?)" - Mike Spillman
"As long as there is breath there is hope!" - Mike Spillman
I think this agent feels his or her time is being wasted. Think about how you made this offer, was it made in a professional manner, did you know what you were talking about? How did you tell the agent your were intending to fund this deal. What is your acquisition and exit strategy? I don't want to offend or discourage any one but if you don't know what POF and EMD is you need to go back and really learn the basics of this business.
Read all you can, attend REI clubs, join the success academy, study everything you can. Read all of Deans books 2 and 3 times! Then go out and make offers!
Good Luck,
Michael Mangham
MD Home Acquisitions LLC
Knowledge is power, but execution trumps knowledge. Tony Robbins
http://www.mdhomeacquisitions.com Seller site
http://www.mdhomeacquisitionsbargainhouses.com Buyer site
http://www.mdhomeacquisitionshousehunter.com Bird Dog Site
http://www.mdlodeals.com Tenant/Buyer site
Kansas,
That is the most ridiculous thing I've heard. Earnest money is to show that you are willing to put money up to show your seriousness. The MOST I'd ever put up is 5K; don't care how much money the property is.
At one point in time, $630K around here was just an average price. $1K was not an uncommon EMD for that price. ANother market, but the concept of an EMD is the same; to show you are willing to lose something if you don't make the effort. Tell your agent to go fly a kite.
Most people do not keep 630K in the bank. It has to be unlocked from other areas. I you sure its not a POF she's wanting?
I am also new I haven't done any deals yet. But in Dean's books it doesn't say anything about putting that kind of money down. Not everyone has that kind of money sitting around not even Donald Trump. I would check it out again make sure what they wanted??? Or maybe they didn't believe you were for real. Please keep in touch to let us know what happens.
Good Luck,
Bertha
Thank you
You should perhaps try starting out with FSBO (for sale by owner type properties) then work your way up to executive homes.
Zion ,
I'm thinking The Same thing I think This Dude is trying to take Advange of me & is trying to see If I'm Real , I find the $630K to be A Snuff to see if I'm real about Buying & Reselling the Property , I also thought to myself Hmmmmmmmmm Its strange how many Real Estate Agents Claim They do Assignment Deals , Maybe some do but Many that I have came across Have either Said NO Or Don't know what A Assignment Is .....LOL I've been thinking about Contacting Centry 21 & asking if they have A Agent by his Name & If So Complain & see if I can get Another Agent thats more Realistic Cause Its Outragous the Amount of money hes asking me to Put down , & hes claiming its for Escrow , But I'm like hmmmmmm I've asked A Few & Most only want $100 Or $400 for Their Services & To work for you , & $5K seems more Realistic then $630K .
But I've yet to see A Escrow Company ask for $630K just to work for you & Serve you as their Client Or to even open A Account with them , When He E-mailed me this I was like WTF? is he talking about Othough I never Replied to it Thats what I was Thinking in my mind .
& As for Wasting ones time , He has Wasted my time by telling me He was Mailing me Paperwork That I've yet to see & I'm not even sure if hes Real .........LOL
But he contacted me After I send for A Offer on A Home At Centry 21 So I don't know But What I do know I'm the one Thats Been Honest & has Explained to him what I'm doing & things , Hes lead me to Believe He was sending Documents Bla Bla Bla So He knew Exactly what I was doing Its not like I didn't Tell him .
So For those who are asking me if I told him What I was doing I Explained everything to him before hand so he would know & My Offer Was way highier The Seller actually Wants Less then What I Offered so My Offer & Everything else has bee Highier & Honest .
That is the most ridiculous thing I've heard. Earnest money is to show that you are willing to put money up to show your seriousness. The MOST I'd ever put up is 5K; don't care how much money the property is.
At one point in time, $630K around here was just an average price. $1K was not an uncommon EMD for that price. ANother market, but the concept of an EMD is the same; to show you are willing to lose something if you don't make the effort. Tell your agent to go fly a kite.
Most people do not keep 630K in the bank. It has to be unlocked from other areas. I you sure its not a POF she's wanting?
I've Asked Him if its A POF their Wanting & Hes yet to Give A Reply So , I'm like If A Buyer Comes along I'll let them know whats going on , I'm not sure If I should Back out & Move to Another Agent & RE Company Cause thats what I may do .