Posted by Michael Morrongiello on April 22, 2007 at 24:06:15:
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,
Author of the Unity of Real Estate & “Paper” study course