Nate at the 2012 edge event/Earnest money

Hi Tammy,
When you make the offer, you only submit a copy of an earnest money check. Once the offer is accepted, then you have to mail the actual check, but you have a couple days to do this. In order to have the time to lock up the deal with your cash buyer when you are wholesaling you MUST put an "escape" clause or two in the contract. Most commonly used is the inspection clause. So, you make an offer with a copy of an earnest money check and a 10 (or 14) day property inspection clause. During the 10 days you are busily getting this contract assigned (or set up to double close) Now, if you cannot get this accomplished, you can back out of the contract and not lose your earnest money within the time period of the inspection. However, if you let the time elapse, you owe the real earnest money. That's the worst that can happen - you lose your earnest money (and yes, ding your reputation), but no other legal consequences. This is why you have to have a good buyers list first and make offers on properties that match their criteria.

If you do get an accepted offer and can not put up the earnest money, the contract is null and void. There never was a contract to get in legal trouble over!!

If you would go out and start making offers you would understand the mechanics involved. Start looking at properties. It does not have to be the perfect property! Or a property that you really want. Evaluate these properties, ARV, repair costs, selling and holding costs. Make offers. THIS is how you will actually learn this business. (sound redundant?) Train your agent, but first you must know what you are doing. Clearly the path you have chosen so far is not the right one! If you don't know the answer to your question about earnest after as long as you have been STUDYING REI you need to change what you are doing! Get out in the real world and try and get a property under contract while always building your buyers list. THAT IS WHAT YOU NEED TO DO if you want to make a real business out of this.

You can do this if you would just change directions!

Michael Mangham
Mentoring/Team Building Nationwide
MD Home Acquisitions LLC

Hey Tammy,
if you have a question for Nate call the advisory line and talk to him. If they turn you down ask if he still does teleseminars. They are free and you can ask questions through your telephone.
Have at it.
Thomas

Nate Armstrong. Also don't you have to be in the academy or something to call the helpline. I am not in that. Tammy

to say I thought you were awesome on the webinar! Thank you for all the clarification! I guess I have heard this, but it really helps and clarifies things for me. Michael, I hear ya. I am planning on making offers this week, but I was watching the edge event, and it brought things to mind that I wanted to make sure of. I hear you. I hear you! Your always giving me that quick swift kick to the pants!

I know you can do this. When you start actually "doing" everything will open up for you I know.

Michael Mangham
Mentoring/Team Building Nationwide
MD Home Acquisitions LLC

I am hoping all the pieces are finally falling into place, but you're right, I will just have to do it!

I had a blast at the livecast! Hey, I'm on livecast on IE at 6 pst today. Hope you will be there. Take action everyday now!

I hope by hearing the same thing from these different people you can understand that action is the common denominator of success. Read post reply #2 again as it the heart of the truth.