Earnest money checks floating all over town. - Posted by Mark

Real Estate Investing
#1

Posted by WilliamGA on March 25, 2001 at 21:02:31:

Jim,

What we did was agree for me to place additional funds there if multiple offers were accepted.

The main reason for wanting to do it this way was to keep from having to write a dozen checks everytime I made offers. The checks go stale after a while and I would have to write new ones. The agent had to keep up with where they were. It all just seemed to be a big pain.

It seemed to be an easier sell than offering no check up front. Very conservative crowd down here.

Look forward to seeing you next week,

WilliamGA

#2

Earnest money checks floating all over town. - Posted by Mark

Posted by Mark on March 25, 2001 at 12:21:42:

How does one make many weekly low ball offers without earnest money checks floating all over town? I make them to a Title Co. I have also heard about useing a promissory note instead of a check. Does a check have to accompany every initial offer?

#3

Re: Earnest money checks floating all over town. - Posted by JoeS

Posted by JoeS on March 25, 2001 at 21:02:37:

JPiper and others have the best solution…it has worked well for me also, that is to make the earnest money part of the acceptance. I take it 1 step further, and state that my Title Co. will hold it, and I do indeed give to the Title Co the earnest money. If they are ever audited they will have nothing to hide or to be questioned. If we all keep things above board in this business, it works out better for all.

#4

Re: Earnest money checks floating all over town. - Posted by Dave Mckee

Posted by Dave Mckee on March 25, 2001 at 20:44:35:

Mark,

I generaly use a note redeemable upon acceptance of the offer and removal of contingencys, and reference the offer by address. I always put an expiration date on my offers, so the note expires with the offer (or if the offer is rejected.) I don’t care how many there are out there.

Dave

#5

Re: Earnest money checks floating all over town. - Posted by Dee-Texas

Posted by Dee-Texas on March 25, 2001 at 19:48:05:

Hi Mark,
I agree with Carol. I use one or two Realtors and tell them the same thing. I will have earnest money in their hand or in Title Co. when my offer is accepted. This works for me BECAUSE the Realtors know me.
That goes back to developing your TEAM.
Best Success,
Dee-Texas

#6

Re: Earnest money checks floating all over town. - Posted by WilliamGA

Posted by WilliamGA on March 25, 2001 at 18:11:39:

Mark,

I know what you mean. I got so tired of having to give my agent a dozen checks every time I wanted to present 12 offers. It took me a while but I finally convinced my agent to let me do it as Steve Cook does it. Actually, I told him if he wanted anymore offers from me, this was the way we WOULD be doing it and he agreed.

I wrote one check to my atty. He holds the check for me (doesn’t deposit it, just holds it) and I make as many offers as I want. I include the stip in the offer that “Ernest money in the amount of $XXX is being held in escrow with Westmoreland, Patterson and Moseley and will be released upon acceptance of this offer” They can call for verification if they like and they will find that yes, it is there.

I just started using this a couple of weeks ago and it just so happens that I got my first MLS offer accepted out of that bunch so I guess it is ok to do. LOL

Good Luck!

WilliamGA

#7

Re: Earnest money checks floating all over town. - Posted by CarolFL

Posted by CarolFL on March 25, 2001 at 16:33:01:

Our offers always specify that whatever earnest money we are putting up (and it is minimal) will be deposited within 48 hrs of acceptance of the contract by the seller.

No one has had a problem with this - even the Realtors… in fact, most of these offers are made BY our broker and we use her escrow account.

Hope this helps.
Carol

#8

William, how’s it going down there? - Posted by Frank Kern

Posted by Frank Kern on March 26, 2001 at 15:58:41:

William,

I recognize the name of your attorney’s office. Small world. How are things down there in Macon? I’m a native myself.

Frank

#9

Re: Earnest money checks floating all over town. - Posted by JPiper

Posted by JPiper on March 25, 2001 at 18:28:22:

William:

Just thought I’d point out that while this may have worked, it’s not without it’s problems…namely, that you may be misrepresenting the nature of your transaction to the broker. This is a point I’ve made to Steve as well in a fairly lengthy answer, which may be in the archives if they’re working.

The basic question I would ask you is what happens if you make 5 offers, and only have money held by the attorney to cover 1 accepted offer. Now all 5 are accepted. The problem is that the money may not be there…so that what the seller is accepting is not the true nature of your offer.

If I were you I would simply handle it like Carol suggested. This should be an easy sale to a Realtor.

JPiper