Hmmm… - Posted by Mr Donald (NORVA)
Posted by Mr Donald (NORVA) on October 26, 1998 at 19:14:39:
Try reading ALL the material on this site to get a comprehensive grasp of ALL your available options. There’s a myriad of techniques waiting for you to explore - if you take the time to learn them properly, and understand them too.
Cash isn’t necessarily needed, nor is credit - but both of these help tremendously. Lease/option without cash is a bit tricky (to say the least), but flipping with a minimal amount of earnest money might be possible if you find the right deal.
Ideally, as you become more advanced and experienced in the RE game, you’ll find there are certain subtleties that will give you the edge over the common man. Mind you, we’re not talking about any trickery, deception or fraud here - just about giving yourself the best possible terms for your end of the deal.
In MY buyer’s contract I use something similar to the following:
“…The Purchaser shall tender earnest money (?Deposit?) in the amount of ? $ _____________________________ by check and/or ? $__________ by note due and payable on __________________________ , 19 _____ , to be held by the Settlement Agent of this transaction…”
So your Settlement Agent - whomever you prefer - holds the deposit, not the Realtor’s Agent or the Seller or anyone else.
Furthermore, here’s another clause, for instance, that can yield great advantage when properly inserted:
“…The Purchaser agrees to contact the Settlement Agent within 15 Days of Contract Acceptance to schedule settlement…”
Innocuous to most, but powerful for me because yet another clause could state the following:
“…(?Days?) means business days, exclusive of Saturday, Sunday and legal holidays, unless otherwise specified…”
So, if you’re on a limited budget, or funds are tight or you simply want to assign that Contract to another party - and you have NO cash on hand when you sign the Contract, there’s about 3 weeks of time to get your act together.
Amazing what a little bit of creativity can do to make your deals work in your favour.