I finally fax my very first contract over to the seller after he agrees to my offer and he replies by email…
“Who do you plan to assign this too? Please e-mail or fax me Proof of Funds. Also, we are needing 1% earnest money from the asking price. Please let me know.”
Now what? I mean, am I suppossed to get this info plus the earnest money from the seller? Can somebody help me,please! Thanks to all!
Sounds like you are dealing with a Realtor, Investor or not a very motivated seller. The fact that they are asking who you are assigning it to is unusual. Most homeowners don’t know about assigning contracts.
The earnest money should be negotiable but make sure you don’t give it to the seller, you should deposit it with whomever is handling the closing.
So what your saying is the deposit is going have to come out of my pocket? If so, I’m just going to have to pass this one up because I don’t have any money.This is the reason of me wholesaling in the first place. Thanks reiauction!
I wouldn’t just walk away yet - but realize this person talks like they know what they are doing. Always be careful when dealing with someone who knows more than you - you can’t bullshit them.
First, I’d treat this as a counteroffer.
Normally earnest money is not a real issue unless they think you are a flake. ie- a real estate investor wannabe with no cash, no credit and nothing but big dreams - who can waste their valuable time. Also the fact that they want proof of funds - they don’t think you are for real. They don’t want to have someone who doesn’t know what they are doing tie up their property when they think they can sell it for as much as you hope to sell it for.
If you have a buyer’s list - start working it hard for the next 12 hours - call email and fax everybody with the deal that is “working” and see if there is someone who wants “first look” If you get someone on your list interested - you can come back to your seller and tell them you have an investor (or 2-3) who is interested in partnering with you on the deal, that the deal matches what they want to do do, and you just need the property tied up for 5-10 days so your partner can do his due diligence and give the final okay. DO NOT DO THIS IF YOU DO NOT HAVE SOMEONE SPECIFIC. These people sound like they know more than you. If you try to fast talk them they will blow you away.
If you don’t have a buyer’s list - and you are someone who they think you are - a REI wannabe without money, credit or contacts - then you ought to tell them that - but get an option for maybe 96 hours and let them give you a chance. Be honest - and who knows - they may be happy with your honesty and let you on for a quick ride, won’t hurt.
If the above doesn’t work - move on to the next opportunity.
Good luck
Good advice Salverston!