Posted by Mark on February 10, 2001 at 20:55:01:
Works pretty good don’t it, I just use one buyers broker so there not any checkS around town just one check at a time.
I use one broker even if its not her listing ,let her hunt the keys and deal with the other brokers.If I have a deal that the check is used then she will ask for another if she needs to submit one with a offer.
That Darn 1000$ Earnest Money ! ! - Posted by Hatmat
Posted by Hatmat on February 09, 2001 at 23:57:23:
Just a quick question for all,
How do I get around putting down 1000 bucks everytime I want to put an offer in on an REO. For some reason lately, I’m running into a lot of reo properties, but I’ve got to put down that darn 1000$ everytime I want to make an offer. Now you’re probably thinking, just do it! But if I get more than one offer accepted…well, that wouldn’t be a good thing. I want these houses I’m seeing. Quite a few for 50 cents on the dollar right now. HELP!! What can I do?
Hatmat
Re: That Darn 1000$ Earnest Money ! ! - Posted by Kate (VA)
Posted by Kate (VA) on February 10, 2001 at 08:45:03:
Somewhere on this site there is a chat room transcript from a Q&A with Steve Cook. He mentioned that he has $1000 in escrow with his lawyer and he used that same $1000 for earnest money on all his offers. His lawyer just reconciles it at closing. You may want to ask Steve a little more about the details.
Kate
Re: That Darn 1000$ Earnest Money ! ! - - Posted by Frank Chin
Posted by Frank Chin on February 10, 2001 at 07:54:29:
Just a quick question from the Seller side.
We recently placed a property for sale - and received two offers - each with $500.00 earnest money check attached. We decided to accept the second offer.
Of course the offer is subject to the Purchaser’s attorney approval plus a few other things. But the $500.00 made the offer look real to me.
Then in the week following - I received calls from frantic brokers who wanted to find out what the offer is - and want to pay MORE. I said NO, the property is in contract, because I gave my word.
The contract process took several weeks due to back and forth changes in the contract. Leaves me to wonder if I got an offer from Mr. Hatmat - put everything on hold for him - then finds out he’s been putting offers on lots of other things - and decides he’ll go for something else.
In the meantime - I would have wasted four to six weeks of my time, and left HOLDING the BAG.
Also, I’m told that these checks are usually held, but not cashed all that often anyway. But at least, for a seller like myself, I know the buyer is not toying with me.
Any good ideas on how to tell if an offer is SERIOUS if all I got is the realtors word that “He’s a nice guy”
Just wondering.
Have them make incremental payments in Escrow - Posted by Monique
Posted by Monique on February 11, 2001 at 24:04:12:
Frank,
Consider adding a clause to your buyer’s contracts that requires them to place additional earnest money into escrow at different intervals.
Perhaps, $500 with the contract offering.
Then, an additional $1000 after the inspection is deemed satisfactory.
Maybe more if the purchase is all cash.
Monique
Re: That Darn 1000$ Earnest Money ! ! - - Posted by Rob FL
Posted by Rob FL on February 10, 2001 at 16:57:13:
In order to get rid of flaky wannabes (no offense intended to anyone, but I see a lot of these), I require 2 things when I sell.
The earnest money is deposited immediately upon acceptance. Florida law requires brokers to deposit it into escrow within 72 hours anyway. The number one reason brokers and salespeople get in trouble with the real estate commission is playing games with escrow money. Personally, I don’t put up with that garbage.
I require proof of funds or mortgage pre-qualification on my offers. I don’t deal with bozos who don’t have money or can’t qualify.
If they want to try and flip my property, no problem but their offer better meet my criteria or they can take a hike.
Just the way I do things from the seller’s side. On the buyer’s side I do things quite differently.
Re: That Darn 1000$ Earnest Money ! ! - - Posted by Mark (WV)
Posted by Mark (WV) on February 10, 2001 at 11:33:28:
Frank I make offers like the above and leave a check with my buyers broker for $500 when the offer is accepted the check gets cashed most of the time with in 48 hours of the time of acceptence.
Every offer I make I’m dead serious about whether I want the property or not.I’ve got a few that I wish I hadn’t but thats the way it goes sometimes.$500 bucks is easer to come by these days but I can remember when it wasn"t and I’m not about to give away anything due to default !
By the way here it isn’t legal to tell another buyer about another offer or it’s conditions.
Maybe I’m by my self in my ethics but I don’t think so.I still think when you tell some one that you will do something you do it even if it hurts.
Re: Earnest Money, ROB FL - Posted by Kaye
Posted by Kaye on February 10, 2001 at 19:03:35:
Hi Rob ,
Earnest money and making an offer to the
seller.
How are you? Fine I hope. I am hopefully or soon will be a newbie in Starting out in REI. But just to start out slow, I want to begin in flipping property and what you just said to Frank in your posting here on Earnest Money has sort help me have a better understanding on what I will be dealing with. You see I am a little nervous because I never dealt in RE before until now. So what I want to ask you from a seller’s point of view again just so I can break the ice with the seller, How do I let them know to take me seriously when offering to buy their property and flip? And also what is it that I have to qualify for in order to be able to flip their property?
Rob, I here all the time in flipping property, investors say that it is best to keep the earnest money low as possible, like at $10 or less when dealing with a private owner and with a realtor you would have to pay $500 to $1000. So what qualifications would still apply to an investor if they want to flip the property? What do you (the seller) and the investor agree to in order for the investor to get the contract flipped? And what does the seller get out of this? Let’s say the asking price for the house is $95,000, Where does the investor(myself) come in where I would get the cash and the investor or buyer would pay me and the seller as well? Or how does this work. I am sorry for so many questions but I rather here it from an experienced person one on one than constantly buying books and tapes. Thank you for your response.
Sincerely,
Kaye
we do too - Posted by CarolFL
Posted by CarolFL on February 10, 2001 at 14:54:18:
Actually, our broker usually writes up the contracts with a $200 - $500 deposit depending on the property and her mood! It is for deposit in escrow w/in 48 hours of acceptance of the contract. We don’t want check lying all over town, awaiting some seller’s determination of whether to accept a contract or not.
Carol