Can anyone help me, how do you put offers in without putting up earnest money. Every time I try they are asking for at least 1000.00. One 500.00. How is this done when you have no money?
Hey, Just wanted to give you some insight to the problem you're having. I'm sure many of the more seasoned investors will jump in. The first thing you have to realize is that any and all the problems you are having in getting started, many others on this site have been through and are here to assist. Just don't give up! Keep searching for the right answers. It's definitely all here.
There are plenty of no money down strategies! How many of deans books do you have? They key strategies you'll find in them for these types of situations are "Assignments", "Bird-dogging", "Sandwich Leases" just to name a few. If you are not familiar with what those are then start researching how to form deals using these techniques.
As far as the earnest money you do have the option of expressing to the seller you don't want to put $1000 or $500 down and suggest another price. All they can do is say no. Obviously the earnest money is used so the seller takes you serious as a buyer. When you are using no money down techniques you really want to focus on desperate sellers. Houses that have been on the market for a long time or are in danger of being foreclosed on. Desperate sellers are more willing to bargin and work with you.
Try to get some support. Try to find a partner to join you in your ventures or a seasoned investor you can just bounce ideas off of to form deals. It will take a lot of the pressure off and give you more options. If you learn to find tremendous deals people will be lining up to partner with you.
Ok I am talking to this private owner he owners 80 acres . I talked to him about 40 min. Found out he wants out under this because of a broken relationship and he went on to tell me he can't look at the property. He does not live there he has moved 2 hours away. I need help ok I do not have the credit or money so how do I make this deal. There is a lot of potential here he wants 1000.00 earnest money. He is selling it for only what he owes on it.
What happened with the post you put here on the land deal? Did you work it out or ?
congratulations on taking steps towards your rei goals!
Regarding the EM, when you're dealing with a private seller, you don't have to put up $1,000; you explain to your seller that he doesn't get the EM, that it goes into an escrow account that no one can touch until closing. You an tell him that you are willing to give him $100 cash as EM that he can hold onto while you do your inspection, etc. (Make sure you get a signed Purchase Agreement stating that he received the $100 EM)
If seller insists on $1000 EM, find a partner to loan you the money for 30 days and pay him/her with interest when you close the deal....
Wishing you success,
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