hey guys, i’ve always been taught to do the $10 binder on a contract when wholesaling. What do you do when the seller wants a $500 binder? Do you guys still go through with it?
Thanks,
David
is a binder in your definition, earnest money? if so this amount is negotiable, but must be ultimately agreed upon by both parties, at the risk to the buyer of losing, and the risk of not getting the property sold to the seller. the seller is always going to want a large amount, and the buyer if hesitant, is usually wanting to risk very little.
it’s when i deal with bank owned foreclosures, they seem to want $500 earnest money.
First off let’s be clear on what we’re dealing with. These homes have already been foreclosed on and owned by the bank. They are now REO’s. Unfortunately, banks can make their own rules; what may work for a distressed seller probably won’t with the bank; it’s a whole different ballgame.
Regards,
Dave