Those of you who work with Realtors...have you ever tried this...

On our last offer we used a promissary note, but it only gave us until 48 hours after acceptance to come up with the EM. So, yes, they'll take a PN, but in our case we didn't try putting the actual cash out until closing. I'll try that next!

Tracey

I would like to hear what happens when you tell them you don't want to put the actual cash out until closing.

Also I was wondering what happens when you put in your contingencies that they cannot cash the earnest money check until after your inspection time is up? That would give time to hopefully get your end buyers earnest money to cover the check.

Put yourself on the other side. If you are selling your property, and you have marketing costs and holding costs on the property, are you willing to remove it from the market with just a promise to pay, or would you want the buyer to back up his offer with cash? I would want the buyer to perform within the wording of the contract, or loose their earnest money. If the money is not deposited with the closing agent, how would you collect?

I read in a coulpe of books,and also heard it from a speaker no a webinar that you might want put the money in an escrow acount. So lets just say you are making 3-5 offers a at a time just let them know that the money is in escrow. When they call to see if the money is there that will seal it for them.once the offer is accepted and you find your end buyer you get the deposit from them so you do not have to use the money.

Although I haven't done the escrow route yet, I heard from several other investors that if putting in multiple offers, that is the way to go. I personally will be using an escrow company or an attorney to hold the money so you don't have to put $ down on each PO

You must not claim greatness, you must achieve it.

When you look at earnest money in a contract, it is one of the elements that is needed to have a legal binding contract. A promisary note or an IOU is an excellent way to be creative in coming up with earnest money.

Consideration/earnest money:

-This can be any promise, act or transfer of something of value

-Any new advantage to the person accepting the offer or disadvantage of the person making the offer

-Check ( This really is a promise to pay also)

-Cash

-IOU or Promissary note

- A check that can't be deposited until certain conditions in the contract are completed

- A contingent lien on another piece of property (cross-collateralization)

I am glad to see that you all are being creative!

Wow! It's a blessing to hear from other Investor's who have so much knowledge. It's much appreciated!

Thnx

What if you wrote out a check but put the date your inspection period expires on the check itself? Technically they wouldn't be able to cash it until the date on the check right?

Hi everybody. Hope I'm in the right forum. I'm just finishing BARM. I was reading the use of Lease Purchase Options and it said that lots of times, Dean would deal with the seller's agent and explain that they could also act as the buyer's agent to present such an offer. Hoping that this question hasen't been posted a hundred times already, how exactly does the RE agent get paid their commission if you're offering a lease purchase option with no money down? I would appreciate any feedback I could get to clarify this for me.

Thanks in advance everyone.

Paul

Hello all I just wanted to state that when my RE agent and I submit offers, in the additional terms section of the purchase and sale agreement we sate that "earnest money/initial deposit of, for example $1,000, due with in 7 days of acceptance or the contract is null and void.

Then we fax them a copy of a check and the have the time to collect the earnest money from an end buyer.

If that initial deposit is not paid in that specific time frame of say 7 days the contract is null and void.

When jeremy and I placed our last offer, we told the realtor to present the offer and if there was interest, we would submit an em check of only $100.00. We feel with the right exit clauses the em is just a bump in the road and quite frankly a bit of a pain. If we want the house the money will be there. Of course our realtor is an investor also and goes thru the same crap so he leans toward our side a little more. perhaps it is just because we have a good relationship that we are allowed to get away with this......Jan

I'd like to know how this works too, Paul. I'm planning on writing up an offer in the next couple of days. Can we just act as our own buyer's agent too and cut down on the total commission due?

I'd like to know how this works too, Paul. I'm planning on writing up an offer in the next couple of days. Can we just act as our own buyer's agent too and cut down on the total commission due?

I'd like to know how this works too, Paul. I'm planning on writing up an offer in the next couple of days. Can we just act as our own buyer's agent too and cut down on the total commission due?

I have done a few lease options in the Phoenix area. The agents (buyers and sellers) get paid a commission based on the rent for one year, or a preset amount whichever was set up in the listing contract. Then if the renter decided to excercise his/her option to purchase, the agents are paid another commission for the sale. Again, this amount was established in the listing contract. In both cases, the seller was paying the commission for both agents.

Al

I live in Sacramento Ca, and the title company is telling me that I cannot do a simultaneous closing on a deal that I have an option to buy on. They say that I have to come up with the money and purchase the property fist and then turn around and sell it which will make it a double closing. If any one knows af another way to get the house closed without me coming up with the purchase money please let me know.

Hi Roofman,
I have had same road block here in Tacoma, WA. I would love to have advise, PLEASE. Thank you all.

Now keep in mind my only experience so far is by twice reading Deans "Profit from RE Now".

I believe what he recommends is using a RE Attorney instead of a Title Co. and use the And/Or Assign paperwork to take control of the property without actually owning it and then pass it on to the new buyer with your profit included.

Anyone who knows different may correct me here...

Justin
Merced, California

I have many times made multiple offers with one earnest money check being held in escrow. Just like what was mentioned earlier, if anyone calls, they can verify the funds are there. At that point, it's first come first served. When making 30 offers, rarely more than 4 or 5 sellers come back to even negotiate. Once someone accepts an offer and you go to contract, you can halt negotiations on all other projects, and tell them you are no longer interested because you have a different property under contract.

If you happen, however unlikely, to have two or more people accept your offers without further negotiation, one contract will fail to be consummated without the 'binder', or consideration. In that event just continue with the best property at the time.

Obviously, this strategy changes if you are looking to do multiple properties at a time. But that's for another post later.... Happy Hunting!

hello all
we must keep in mind that earnest money is negotible just like the price and terms Its whatever the seller is comfortable with

Hope this is helpful and hopefully I havent repeated some one else

Later Fred E

I am going to say this very carefully. I hope people that want to be a Real Estate Rock Star in their area remember this. A Real Estae Agent 1st of all does not have the code of ethics that a Realtor have. If you are labeled as a cheap investor that does give the buyer a earnest money deposit to cover the seller in case you back out for any reason, good luck on your deal. Keep in mind a deposit could be anything you decide on, even $100 or less. Remember Realtors are a close knit community and if you have a reputation of wasting people time and a joke, good luck with getting your offers even PRESENTED not to mention accepted.

Just the ugly truth. If it was ME and I was going to offer a promissory note that the seller will never see until I decide to actually close the deal, I would offer a significant amount like over 1k to get them interested.

Last thing you want to do to yourself is give yourself a bad name as the cheap no earnest deposit want to be investor in your area.

I wish you all the best.

What paperwork is used in the multiple offers program? It must something simple and can be emailed to FSBO's or MLS listings?

If Assigning...what forms in what order?? Have not done one yet but I'm close!! Are the forms the same in either offer case - MLS and FSBO's??

If making 25 offers a week....use promissary notes for earnest monies? How long a period of time until due?

Thanks!!

found a site using craigslist that will finance your double closings for a small fee it is www.fastinvestormoney.com check them out - hope this helps

Salden,

Thanx for your input. Keep in touch!

John

Hi

Im new to real estate investment and I've just finished Dean's book Profit From Real Estate Right Now! I've found many homes for sale, but most of the sellers are using a real estate agent to sell their home. Is it possible to use Deans IEE system with the Real Estate Agent? How can i go about negotiating the deal without offending the agent or "stepping on anyones toes"?

Thanks

Bruce,

The only thing you can do is make you offer to the agent, who by law must present the offer.

Your best bet is to find a FSBO where you can control the deal and go from there. You can't step on toes if you have nothing to bargain with.