When making an offer on a property, as a wholesller, how do i determine what earnest money deposit i would put on a contract. Does it depend on the MAO, the market value? Do i put 10, 100, 1000 dollars on the contract? Please Help.
Speaking only from my exp the last 4 contracts (NY) I’ve put down $1,500-2,500 each. Idk how much other ppl put down…hope this helps.
I have contracted 5 properties wholesale through the owners and I have only made earnest deposits of 10.00 dollars on each,
and give I that check to my title company when I deliver purchase agreement and assignment contract for closing…
I have found that most owners are really not interested in the earnest deposits…they just want to sell…
Ditto what Hoggy said… if you are dealing with a private seller, you can usually get away with putting a very small deposit down. I’ve only done a handful of deals with homeowners, but I never put down more than 10 bucks on any of them.
If you are dealing with listed properties, you should expect to put up $500 or more, especially when dealing with REOs (bank owned properties). All of the deposits I’ve put up for REO deals have been 1k or more.
Good luck,
Steph :cool
Looks like I’ve been overpaying by a lot then lol!
I’m working on 2 deals with realtors. Is 100.00 a suffient amount of a deposit without embarrasing myself. This is my first time making an offer on a deal. Kinda nervous. Just wanna make sure i make no mistakes.
You an try it and see what they say. If it’s a bank owned property, it is probably not going to fly, though.
They usually want to see a minimum of $500.
Steph