Posted by Ray(OH) on September 07, 1999 at 13:02:11:
I told that to an agent once "That’s not the way I do business, if I gave $1,000 earnest money on every deal, I’d be foolish. To which she replied “If you don’t give $1,000 on every property then you should have plenty of cash to do just this one”. After going back and forth a few times, I just walked away.
I HAVE NO MONEY!!! HELP??? - Posted by John, Wash. D.C.
Posted by John, Wash. D.C. on September 02, 1999 at 16:34:26:
I am a newbee to real estate investing. I have a property that I am in a position to purchase. My goal is to assign my position in the deal and be done. The agent is asking for a $1,000 earnest deposit. I can write a check for that amount, however I do not have the money to cover the deposit. The agent stated that she will cash my check and refund the money upon a third party assignment replacing my deposit with their deposit. I have already attempted to have the check held in escrow until the deposit is replaced but, they don’t want to take the risk. HELP!!!
How do I get around this???
All comments welcome. Thanks,
Re: I HAVE NO MONEY!!! HELP??? - Posted by tarun_md
Posted by tarun_md on September 03, 1999 at 17:10:39:
I made a cash advance from my credit card for 1k last month to pay for the earnest money. I sold that property to an investor 2hrs after I had my paperwork signed. I got my earnest money back immediately and and closing, got a check for 4.5k. Just get creative and figure something out. I am sure you can.
Re: I HAVE NO MONEY!!! HELP??? - Posted by Rob FL
Posted by Rob FL on September 02, 1999 at 21:33:11:
One thing to remember is that the agent is not asking anything. They simply represent the seller. I have had agents tell me the seller will never take this offer and low and behold, the agent (who BTW doesn’t own any investment property) was wrong.
Barbara has some good advice. Listen to her. My advice to you is to make your offer at whatever terms you feel necessary (unless of course you have spoken with the seller, or the realtor is telling you that the seller has given specific insturctions of XYZ).
If the seller or the realtor will not budge on the $1000 issue, then it is probably not a motivated seller.
No deal is worth loosing control. - Posted by Barbara_NY
Posted by Barbara_NY on September 02, 1999 at 18:32:24:
If the realtor says he/she will only do the deal as you stated in your post, tell her that is not how you do business. I can imagine an earnest money deposit being expected (as is common in NYC), but $1,000, and under the terms she’s expressed are just plain not necessary.
Tell her you understand her position and are willing to work with her. Tell her as an investor you cannot tie up so much of your money in earnest money deposits. Tell her that with the volume of biz you do that if you gave $1,000 simply as earnest money you’d limit the purchases you could make and be out of biz in no time. Tell her you are looking to expand your long term relationships and there is a chain of biz to follow if she is willing to work with you. Tell her how much you are willing to put forward for earnest money. Could be $100. Could be $500. You decide. If she isn’t willing to work with you move on. There are many deals out there that can be done under your terms.
Good Luck and YOU maintain the control.