how much earnest money should i Give?

The correct answer is probably the least amount the seller is willing to take. Dean does recommend $100 and I believe this is a good amount. On any deal, the real estate agent may request $1,000 however this is only a request. You create the contract offer and earnest money offer. Thus, in each area of the USA it may be a little different, but you will find what the norm may be and what will be accepted. You can always increase the earnest money if the deal is good and you do not want to loose the deal because of the earnest money deposit. Good luck, I hope this helps. Believe and Achieve! _ Joe

Is the earnest money deposit returned to the buyer if the buyer cancels the contract before the inspection period ends? Thanks in advance!

correct me if i'm wrong, but a lot of times a wholesaler finds pre-foreclosures then finds investors, thus avoiding a real-estate agent all together. let me know what you think. thanks

Hi Daniel
Glad to have you here on the message board. I always give anywhere from $0 to as much as $10 of earnest money. The home owner doesn't seem to care. Their main objective is to get the house sold. I just tell them because of the amount of homes I look at and contract that my company has a policy of $10 per house. At least for me they never question it at all.

Even if you did give a $100 or $1000 earnest money you could put a stipulation in the contract that it becomes available on closing day.
MAke a photo copy of the check and attach it to the contract.
That would give you plenty of time to run to the bank and cover it once you collect your $$$ from the end buyer on closing day.

Sissy

Yes you are right. You don't have to have a realtor. So far I have been working alone. Can't seem to find a realtor that understands wholesaling or how investors work.
The very best thing to do is to get a list of buyers ready then find the deals. The deals are plentiful...buyers are what are little harder to find...at least good serious buyers that are standing ready to jump on a good wholesale deal.
Go to you monthly investors meetings and take plenty of your business cards and talk to everyone and give your card to them. Find out who is currently buying...what area they like to buy in...do they like houses that need major rehabbing, cosmetics work only or if they like "turnkey" houses (that is a house that is totally ready to rent...no work required).

thank you very much for the reply. I feel blessed everytime I get a little more information from the pros on here to help me toward my goal.

We are always learning something each day from our DG families.

Thanks

Paul

Let me warn you new people about realtors. When you talk to them about 85% of them will try to tell you that wholesaling is illegal....funny thing is that they can never prove it to be.

Wholesaling is done everyday by thousands of investors...my real estate attorney also wholesales sometimes.

It is the fact that realtors absolutely do not understand the concept that a person can put a house under contract and then sell their interest in the deal which is the contract they hold. They sell (assign) their interest to an end buyer. It is totallylegal and do not listen to them when they start ranting that it is illegal.
They are totally clueless and don't want the competition.

Thank you for the informative posting, this helps alot! I have been trying to find these answers diligently for the last few days. It is much appreciated.

Thanks again and good luck!
-Mike

To avoid a REA, Then you must have an RE Attorney and then again these are your team players.I will say a RE attorney will over-ride a REA when it comes down to the contracts which is most important to a REI. I guess i am trying to say...If you are new to buying and selling property then work with professional people at first and then you can go it alone.An RE attorney is a must in my thoughts.
Please anybody feel free to grab the ball and run with it!
Good Question Buffs28

What exactly does the RE Attorney do? Does he do all the paperwork for you? Like obtaining the needed contracts to make the wholesale deal?

If the seller pays the realtor's commission and you get your share, I don't see why the realtor should be threatened. Am I missing something?

yes it is . Just make sure you have a valid clause such as" subject to buyer's satisfactory inspection".