Posted by Michael Morrongiello on February 02, 2000 at 23:22:27:
Lets take a look at some of your concerns:
Earnest money deposits are purely negotiable. I’ve put up NO cash and simply a note promise of repayment. Other times I might put up $100 -$1,000. Try to limit you exposure on the deposits if you can.
Once you have the property tied up under an “assignable” contract you have a couple of options.
A) If it is a good deal, you can quickly “Wholesale” the home to another investor and make a few quick bucks for assigning your rigthts in your contract to that investor.
B) You can BLITZ the market for that home to be sold to an owner user “retail” buyer. Maybe offer owner financing to attract a lot of interest or sell it below market so the buyer feels they are getting a deal as well
C) If the contract term for a closing date does expire then you can try to renegotiate with the seller OR you earnest money deposit (remember that) might be in jeopardy of being lost for liquidated damages and your inability to perform under the contract.
It would be wise to establish some relationships with other investor / Wholesalers so that you have an “exit stratergy” developed before you tied up a property.
- An all cash offer means the seller is expecting to receive ALL CASH at the time of closing based upon YOUR agree upon sales price with him / her.