My question is if the Seller accepts my offer,seller& realtor wants emd check for $2000, and pof letter, pof letter would be simple to get, but acopy of a $2000 check can be forward to realtor by email (pdf) realtor can not cash within 48 hours!! The reality is I do not have $2000 , therefore I have time to transfer sale to my buyer, I ask my buyer for $3000 deposit instead of $2000, I pocket $1000 the realtor gets his $2000 . And new buyer walks away with house.
Welcome to the REI. I am not sure what your question is.
Anyone out there know if this can be done,I submit offer on a house offer gets accepted by seller, I do not have money for a down payment earnest money deposit, but, I can forward a personal check for the earnest money deposit to realtor/seller, they can not cash check before closing, it leaves me time to find a new buyer and charge new buyer an additional $1000 on top of initial earnest money deposit, I make $1000 the seller receives his $2000 the new buyer has a house…
Usually EM checks are deposited with a title company.
They deposit it in an escrow account until closing.
You should always have funds available to cover any checks you write.
Either line up your buyer to provide the EM before the contract is accepted or find another source for your funds. Someone you know should be able to provide a 2k loan for a 10% return for 60 days or less.
My strategy is for example I submit offer to seller, seller accepts offer, seller wants em $2000 upfront, that $2000 check can be a personal check, oppose to a certified check. I Have 30 days to close deal, seller can not cash before 30 day limit…I assign deal to another buyer, I ask buyer for example$3000 Emd, I make $1000, there is an exit clause if I can not find a buyer, I can back away from deal before 30 day limit, and get my check back…
So in essence, by writing a personal check that you do not want them to cash, you are giving them an IOU slip.
No I do notbintent to write off bad checks
No I do notbintent to write off bad checks
How is the seller supposed to know this. Would you take a check from someone you didn’t know and Trust that it was good? Once you build up some type of reputation you may be able to get away with that.
You know what? STOP ANSWERING MY QUESTION… I think your having diffuculty in answering it.you dont get it!
Hi,
Back in the Dinosaur ages when I started into real estate investing we could include a promissory note with the contract in Lieu of a earnest money deposit which was converted and exchanged for cash at say the point of removal of inspection contingencies.
Now I have real estate agents I work with who have copies of checks they include with my contracts, if excepted I generally get my agent a new check within 24 to 48 hours to replace the copy. Sometimes the agent will drop the contract off at escrow and I will drop my check directly to escrow.
Remember your states bad check laws when you write a check, just make darn certain your buyer wants the house and you will receive their contract or assignment and earnest money (Too You) quickly so you don’t bounce your earnest money check.
If in doubt date your check with tomorrow or the next days date so the check can’t be cashed for a day or two!
GR
How many times have you used this method?Is the seller responsible in paying for inspection
What he said.
My bank has cashed checks early that I post-dated. I was told that once a valid check is presented for payment, the bank has to cash it.
I have had a couple sellers ask for large EMDs. In these cases, I put it in my contract that I pay a small part of the EMD up front with the balance due at the end of the contingency period. That way I have time to assign my contract to my buyer and have him put up the rest of the EMD. No bounced checks.
I am curious: if the buyer gives you $3000 and you pocket $1000 before the deal closes, if that your fee? If the seller backs out or the deal does not close through no fault of the buyer, do you give the money back to the buyer?