To Joe Kaiser :About your new article - Posted by Joe Madera

Posted by Mark (SDCA) on November 08, 2000 at 10:40:57:

Well… it depends on what you mean by “up front”. My realtor does not deposit my check unless I win the VA bid. So I do need to have the funds available but they are not tired up unless I win the bid. (And yes, I can make bids on multiple VA properties and decide after the fact which, if any I actually want to purchase.)

Mark

To Joe Kaiser :About your new article - Posted by Joe Madera

Posted by Joe Madera on November 07, 2000 at 21:38:46:

The following is an excerpt from Joe Kaiser’s latest article on this website.Never spend your own nickels and dimes"

This is a good motto to have to keep you from getting “nickeled and dimed to death.” Believe me, it’s super easy to start writing two, three or five hundred dollar checks to get the process started. Don’t do it. We’ll figure out a better way and let someone else write those checks. Believe me, I nearly went broke writing all those checks I thought I had to write way back when. Earnest money? Forget about it. It’s also easy to start writing fifteen hundred or two thousand dollar checks for down payments and the like. Let’s commit right here and now that we won’t be doing this. You can make things happen without putting your cash on the table.
QUESTION:
I’m a newbie.How do you make things happen without writing a check for earnest money?Realtors and owners want to see something.A realtor told me that for the bank to consider my offer for their foreclosed house I needed minimum 500 bucks deposit.Please let me know ,I have read your articles and I like your style.

Re: To Joe Kaiser :About your new article - Posted by Bill Gatten

Posted by Bill Gatten on November 10, 2000 at 19:18:39:

Joe (M),

I think Joe (K) presumed you would not be working with brokers all that often. I seldom do (and I think most of us don’t). And I’m almost never asked for a deposit…although I always put up $100 anyway, in order that I can enforce the agreement. If the seller gets a better offer after accepting mine…I can prove I paid a “fair consideration” and prevent a renege. I don’t honestly know if this is a real legal issue or not, but I always presumed it was. I’ve been told that if the deposit check isn’t cashed (either by the Escro Co., the seller or the Broker, it has no value relative to enforcing the offeror’s performance. Maybe someone else knows.

Bill

Re: To Joe Kaiser :About your new article - Posted by JoeKaiser

Posted by JoeKaiser on November 08, 2000 at 23:16:37:

Hi Joe,

I replied earlier but must not have hit the last button to post the thing.

It really comes down to a couple things . . .

(1) more often than not, we deal directly with home owners. Sufficiently motivated owners don’t require that sort of stuff.

Still. there are costs involved. That’s why . . .

(2) once you understand the mechanics, it’s easy to design a gameplan that requires your buyer to foot the bill for all the incidentals, leaving you free to deal unencumbered by cash requirements. Once that’s set up, you’re flying.

Joe

Re: To Joe Kaiser :About your new article - Posted by Rob FL

Posted by Rob FL on November 08, 2000 at 07:53:13:

Generally when dealing with bank-owned property, HUDs, VAs, and almost anything listed with a Realtor they either require or expect $500 or more in earnest money deposit. Sometimes you can get away with less, but that is the exception rather than the rule. I normally borrow the money from a line of credit like a credit card.

If you don’t have access to something like that I would offer 2 suggestions. (1) Work toward getting some money saved in the bank or toward getting some sort of credit line. (2) Get motivated sellers calling you. When a desperate seller calls you, they normally don’t expect any earnest money and you shouldn’t offer them any.

Re: To Joe Kaiser :About your new article - Posted by Juan V

Posted by Juan V on November 07, 2000 at 21:46:10:

Sometimes I wonder if Joe is a spy? I think he talks to people to find out what they’re doing! So he can then jump into there market and try to take it over.

I could be wrong, but who knows?

Juan V

Re: To Joe Kaiser :About your new article - Posted by JoeKaiser

Posted by JoeKaiser on November 07, 2000 at 22:58:16:

No Juan, I don’t think so.

Joe

PS. So, what’s new with you?

Re: To Joe Kaiser :About your new article - Posted by Joe Madera

Posted by Joe Madera on November 08, 2000 at 04:27:45:

You guys have me confused with someone else.Could you please answer my question?I’m a newbie who has never closed a deal
thanx

Re: To Joe Kaiser :About your new article - Posted by Juan V

Posted by Juan V on November 07, 2000 at 23:03:36:

Please…Don’t try your tactics on this guy!

I control my marketplace!

Booooooah you’re smoooth!
Juan V

Re: To Joe Kaiser :About your new article - Posted by Todd in Ohio

Posted by Todd in Ohio on November 08, 2000 at 10:06:44:

If you are dealing with Realtors on regular MLS listed houses, you can make your $200, $250, or $500 earnest money “due upon acceptance”. That way if you’re making 5 low offers at a time, you only tie up (at most) $500 IF AND ONLY IF one gets accepted (instead of tying up $2,500 at the time you make your offers).

If you’re looking at HUD/VA properties, you will need to find a broker that will let you offer on multiple properties (as above), but only require one (1) earnest money deposit until something gets accepted. However, you will likely need to come up with the $500 deposit UP FRONT when dealing with HUD/VA properties.

Hope this helps…