When making an offer on a property to wholesale. at what point do you provide the earnest money deposit? When the sales contract and assignemnt agreement is signed. then you take both documents to title company with the earnest money?
In general, EMD are submitted with the offer to purchase. you can also write the offer to purchase so that PART of the money comes with the offer and the REST of the money comes within x number of days after acceptance of the offer.
So Mr JakeRogers: If the offer is not accepted after x amount of days, the deposit is refunded? An is there a certain amount of days the seller has to accept the offer?
All these points of contention depend on how the contract is structured and what is specified and what isn’t. It also depends on what type of this transaction it is, that is, if a broker is involved or if it’s just between some private parties. You can draft a seperate EMD agreement (if its a substantial sum of money) that specifies what happens to the money if the deal doesn’t close, etc. The offer to purchase will specify how many days the seller has to accept or decline the buyers offer.
That is a great question and a technique that should be used with adroit skills. First of all you do not want to put lots of deposit money down, $1 - $10.00 is way too little, you should put down $50-$100 with a contingency to put down more at a future date after a certain contingency is satisfied. My partners and I have made as many as 15 offers in one week using this technique. You will need a title friendly closing company and all the proper verbiage to make it work………wishing you good luck with wholesaling….Charles Parrish