OfflineI have worked with homeowners directly and will be getting 5 $1 money orders for my next contracts. It worked well my first time so I will repeat until my budget allows more.....
I am now looking with a realtor as instructed to from Deans Book 30 days to Real Estate Cash but have no money for EMD. But I have found a friend who wants to get in the game and will put down the EMD when working with a realtor until I can do it myself. But how do I work it to ensure they will get reimbursed on a sale and no sale? Would they get 50% profit that we agree on plus the EMD back? And just would get the EMD back if no sale? I am going to be calling agents today to find my superstar as Dean puts it and am petrified but know the more I do it the easier it will get. I have ten numbers to call and will be just looking for the right fit and am following as instructed from Dean's latest book 30 Days to Real estate cash. Thanks for any suggestions.
Have a friend putting up EMD.....
Posted on: Wed, 02/13/2013 - 17:57
Have a friend putting up EMD.....
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- by Louis3733
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That is exactly right. Your partner will get his 50% + his EMD. When you have the assignment contract signed, the buyer will give you a cashier's ck for the EMD right then to reimburse him. I also tell my buyers that my assignment fee is also due at the time they sign the assignment contract. They may not go for that because everyone does not do that, but if they have more skin in the game, the odds increase that they will close on the deal.
If they are NOT going to give you the full assignment fee at the assignment, and you have paid (for example) $1,000 EMD, tell the buyer that you require a $2,000 or $2,500 non refundable EMD. That way, even if he backs out you have not lost your EMD and you and your partner have made a little bit of money.
Good luck on finding your agent! You are doing a really good job!
Karen
"You're never too old to be what you were meant to be!"
www.deangraziosi.com/real-estate-forums/investing-journals/59128/day-for...
"Shining Like a Star & Dancing on Sunshine"
"Shoot for the moon! Even if you fall short, you'll still land among the stars!"
Just realized I missed part of the question. If you cannot find a buyer, make sure that you back out of the contract, in writing, before the end of your inspection period or you will lose your EMD. If you are working w distressed FSBOs though, you often don't have to even give them more than $1 or $10. Often, that is really only put in the contract as a formality and never even changes hands.
Karen
"You're never too old to be what you were meant to be!"
www.deangraziosi.com/real-estate-forums/investing-journals/59128/day-for...
"Shining Like a Star & Dancing on Sunshine"
"Shoot for the moon! Even if you fall short, you'll still land among the stars!"
I recently didn't have the Earnest money of 20K which was required by the HomePath.com (Fannie Mae) REO house I was interested in.
it is very helpful. How long can I usually get for the inspection period? And I know this is silly to ask, but I usually will be doing the inspection before making the offer. Is this the buyers partner approval inspection period? Also, I hope to really establish an understanding with whichever realtor I go with to have my own escape clauses added into any offer contracts and to make sure they are looking out for me as well if they want regular ongoing closed deals.
From: kareng
To: Louis3733
Subject: Re: Karen, I have a question.....
Date: Wed, 02/13/2013 - 14:12
The EMD is credited, just like a down payment toward the purchase price. Since you have already paid it, that is why the buyer is giving it back to you. He is stepping into your position, so he has to reimburse you for monies you have paid already.
Questions are good. That shows you are learning. When you aren't understanding things, you don't know what questions to ask. This shows you are "getting" it. I copied the answers I have PMed you here onto your thread so that others can maybe benefit from the answers also. Hope you don't mind.
Usually, 14 days or so. If you put in 14 "business" days (don't put quote marks in the contract) that will give you a few extra days in a sly way. Make sure you have a clause that says something like this "Subject to Buyer's walkthrough and approval of walkthrough within 14 business days of acceptance. Any disapproval will be provided in writing. Seller shall give Buyer and Buyer's representatives full access to the property upon acceptance of this Agreement." Tell them that you will be bringing various contractors or partners in to give you opinions on different things.
If you are using a realtor, their state contracts usually have a clause in there (at least CA does) that says basically the same thing. Try to get a blank contract from a realtor ahead of time so that you can go over it at home and be really familiar with it.
Karen
"You're never too old to be what you were meant to be!"
www.deangraziosi.com/real-estate-forums/investing-journals/59128/day-for...
"Shining Like a Star & Dancing on Sunshine"
"Shoot for the moon! Even if you fall short, you'll still land among the stars!"
I'd like it to be put together with it including any of my escape, especially the one you just gave me, into it so that before we move forward, it feels good enough on the escape clauses so we can move forward at a fast pace. What do you think?
I am a little confused on what you are asking here, but I think you are saying that you want to have it worked out with your realtor ahead of time if you want to add any particular clauses. They will know that this will be a standard thing you will be doing and to just already have that inserted on any contract that you submit. Is that what you are asking? If so, sure.
Be forewarned though, that you do not want to add anymore excess clauses than are necessary to a standard contract. Often, they are taken as "weasel" clauses (meaning a way to "weasel out of a deal") and will "red flag" your offer, possibly causing the seller to accept one with less chance of someone looking for a way to back out.
That is why you want to carefully go over the standard contract ahead of time yourself. You may not need to add any clauses. Just be sure that your own contracts that you will be using w FSBOs have it.
Does that make sense?
"You're never too old to be what you were meant to be!"
www.deangraziosi.com/real-estate-forums/investing-journals/59128/day-for...
"Shining Like a Star & Dancing on Sunshine"
"Shoot for the moon! Even if you fall short, you'll still land among the stars!"
it makes sense. I'll only use the escape clauses I was trained to. I have a good PA I use with private owners that's only 2 pages. Just want to make sure it's well enough to eventually move ahead at a fast pace. Thanks.
...WOW!!! Just met with my EMD partner and ........
it's amazing what happens when you put your next foot forward regardless what your head or emotions tell you. As some of you know, I've been back to basics with Dean's book 30 Days to Real Estate Cash. I went back to the book when I was unable to move my first deal I had under contract. I was sure it was exactly what my buyers were looking for, but location, location, location. Even though the 3 unit would have generated $791 cash flow even after costs, the location makes a difference and in my area there's alot of cheap inventory. That led me back to the book and when I got to where I needed to find a realtor, I didn't want the fact that I did'nt have EMD to stop me from moving forward with a realtor. After asking for help here how I could protect a potential partner for EMD, I was finally able to meet with that potential partner tonight. I found 3 realtors to work with and will be doing 5 offers each per week until I can fine tune things and just choose one who best works with and for me.
I met with my EMD partner to go over my enter and exit strategy with her tonight over coffee. I've been going to our local Plasma center for extra income and as a result have built repore with some of the workers. 2 want a lease option house with 5-10k down and one is figuring out her criteria. The EMD partner I met with is also a employee there and has wanted to get in RE investing plus wants her own residence. Come to find out she is a trust fund baby and has a deep well if needed be and is now my partner not only for EMD, but also my new partner for buy, fix, and flip! Imagine that! Never judge a book by its cover and now I have learned that you never know where your buyers will come from. Hopefully she will the first of many once I get the flow in forward movement. I want to say thanks to everyone who helped fill in the gaps when I started this thread and another about having an EMD partner......
ONE STEP CLOSER.........Thanks again. Louis