Consideration required? - Posted by Chris_AZ

Real Estate Investing
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Posted by Michael Morrongiello on April 22, 2007 at 24:06:15:

Chris:
Typically no earnest money or consideration needed to contracturally tie up a Note seller under a agreement to purchase or broker their Note.

However in the past if the deal is especially attractive to me (In other words - I recognize it a VERY strong file)I might attempt to OPTION the note and take it off the street and yes do put up some “consideration” which might be anywhere from $100.00 to $1,000.00. This ditinguishes my agreement from all the other army of “dilberts” Note brokers out there trying to spin this Note sellers head around often with empty or false promises they have no business making.

I don’t recommend a new broker put their money at risk and do this and to only do this once you have the necessary skills and confidence to size up a good deal which must be moved on quickly.

Best to your success,
Michael Morrongiello
Author of the Unity of Real Estate & “Paper” study course

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Consideration required? - Posted by Chris_AZ

Posted by Chris_AZ on April 21, 2007 at 13:31:36:

Hi,

When you put a note under contract, is an earnest money check required to make the contract valid, or to open escrow?

I really enjoy this cash flow forum and apreciate the effort Michael, David and John put into it! Thank you!

chris in Tucson

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Re: Thank You Chris… - Posted by David Butler

Posted by David Butler on May 11, 2007 at 12:01:18:

I am looking through the threads here to reply to a more recent post, and I just now spotted your post here. I want to be sure to thank you for your kind comments. They are much appreciated. :slight_smile:

Best wishes for your continued success, and…

Have Fun For A Living

David P. Butler