I bought a real estate wholesale course, and he saying there that you dont need, any money to buy and resale, how could that be you need to put down a deposit, i eaven spoke to a realter and he told me the same thing, that you can not sign a contract with out deposit, please is someone know how to do that?

I guess $10-100 is considered money but it’s not much. :biggrin

Here’s your first clue - deal with FSBOs, not listed properties. With FSBOs you’re dealing directly with the homeowner. If they’re motivated they’re not interested in a deposit, they just want that itch scratched. When you’re dealing with listed properties the listing agent will insist on a large deposit, usually $1k or more.

thanks, but a friend of my is a realter, and he was telling me that i am crazy it dosent exist.

allso where can i find the FSBO properties? Allso i live in nj and i all the properties in my area are 300k or more, are the invester what are ready to buy it eaven in this economy, for so much money?

waht do i have to look for?

Don’t listen to your friend! I utterly assure you he/she is telling you that simply because Realtors as a lot simply don’t know what we know. This doesn’t make them bad people, just not who you’ll want to take advice from regarding real estate investing.

Think about it like this, all they did to become an agent is pass a test with questions like how many sq ft are in an acre & other useless trivia like that. There are actually Realtors who believe it’s illegal to sell a house without hiring an agent. True story! They’re just salespeople making a living, NOT experts in all things real estate. Trust me when I say, once you learn this business you’ll know 10 times more about how to make real money in real estate than the average agent.

The market you live in isn’t the concern, what you’ll need to be focusing on is the “motivated sellers” who are the only ones you’ll want to deal with. Check the Marketing board for FSBO marketing strategies to find these motivated sellers.

Here’s another clue - preforeclosures. :brow

can i give $10 deposit? thid a little funny?

ofcourse as long as the seller is cool with it… all a deposit does is makes the contract binding… try for sellers as well… and the thing about agents is that they’re not investors its like asking the waterboy at a football game how to train to be a quaterback… :biggrin

investors are the players of this real estate game… agents are the ones on the sidelines sure they have a free pass to the game but they’re not the ones constructing and doing the play’s…

I agree! I trained myself to stop thinking about what I have in a deal. If the numbers make sense, then an investor will buy! Key thing is to get familiar with you area and whats going on. I recommend attending gatherings where other like minded people are there to testify to their success!

I have wholesaled many many FSBO houses and have never put up one penny in deposits. I am totally honest with them and tell them I am just the wholesaler and that the end buyer will be the one doing the money transactions. I contract the house and sell to one of my investors or retail buyers for $$$$.

When working wih a realtor and you need to place offers on several houses (with and or assigns after your name)…you write a check for $1000 or $500 as earnest money…your realtor will make a copy of the check and send it along with your offer to each property you want to make an offer on. Your realtor hangs on to the check until all of your inspections and end buyer looks at the properties.

Then you have your exit clauses just incase you can’t find an end buyer. A clause like pending partners approval and inspection clause like subject to satisfactory inspection by buyers choice.
If you find a house that your end buyer wants then he will put up the earnest money…you get your check back from your realtor…the end buyer pays you your assignment fee after signing the assignment contract. This contract releases you from any obligations of the original contract between you and the seller.

This is the way I do it. If anyone else has a different way I would love to hear it.

Normally I will put between $50 to $100 on a FSBO property. Since the money goes into escrow, I normally don’t think about. If the seller wants the deposit in hand, they will get $10 bucks from me and that is it.

This needs to be a test question on the state real estate exams. To many idiots out there with licenses that supposedly deal with contracts every day don’t know anything about basic contract law.

You don’t need a deposit or earnest money to have a binding purchase contract. The seller promises to sell, and the buyer promises to buy, and the two promises are what makes the contract binding.

If your local Realtor idiot doesn’t grasp the concept she should send her license back to the state until she is qualified to have it. Ask her if money is required to make a contract binding then how come they don’t give the seller any money when they take a listing.

Only exception is an option. Some option money is needed because the courts have ruled an option given without consideration is merely an offer to sell and can be revoked at any time.

I agree with Bay Area Brian…

A promise to pay is fine… My agreement calls for that promise to be carried out prior to close of escrow.

Some Agents are still confused as to which color of paper can be on the desk when taking their test… Is it white yellow or pink?

I’m confused. You first say you "never put up on penny in deposits…

…then you say you write a check for $1,000 or $500 as earnest money.

This sounds contradictory.

Do you make a deposit or not? Just trying to understand…

3treats said when property is listed with a realtor. It is not a legal requirement but the mindset of the average agent. I still don’t give them a check but put it in the contract that I will deposit the money into escrow within 3 business days after acceptance of the contract. No body gets any money of mine until it’s time to give it.

I always depositing my money to keep it in safe and to never spent it in things that I never need

I normally use fifty dollars as a earnest money deposit that is held in escrow at my title company

The binder deposit is the stamp that seals the deal. Something will need to hold up in court, so if no money is exchanged then you have no case.

If you are a new investor, you better watch how much you are putting down. Is it worth the risk? If you are wholesaling real estate you should not be putting down more than $10.

Just make sure you get a $500-$1000 non refundable deposit from your buyer to tie the property up. :cool