Making Offers

Bird Dogs, Wholesaling
1

I have a few questions about making offers as a wholesaler.

When making an offer is it advisable to only give the asking price or mention earnest deposit for the contract as well?

Also what is an average amount for the earnest deposit?

Thanks!

2

Most real estate contract will make mention of earnest money deposits. There is no specific average but most of the banks that I have bought from require $1000.00 as deposit or they won’t even look at your offer. When dealing with private sellers you can often get away with $0 for a deposit.

If you are pressed for cash you can always make your earnest money contingent upon the release of your escape clause ( I would suggest doing an inspection clause)

Best of luck!

3

Thank you EricMedem!

I knew banks would want a $1000 deposit. What about other investors? rehabbers? Realtors?

Also I thought for a contract to be legal there had to be some sort of deposit no matter how small?

Thanks again!

4

For a Real Estate Contract to be legal, there must be some consideration.

This could be $1, $500, $25,000, a boat, a rolex, prom note, etc.

Being a South Carolina Realtor myself, I agree with ERIC…don’t let other real estate agents tell you that there is a minimum or “standard” amount for earnest monies. Yes…the more you put into the contract…the more appealing the deal looks from the sellers point of view, but there’s no standard.

When dealing with banks(REO’s), I would suggest, as ERIC did, to offer slightly more earnest monies.

Also, the real estate agent MUST present EVERY offer even if there is only $500, for example, earnest money involved.

Hope this helps.

Darin
hhiinvesting