I have a question for all of you who are experienced in the wholesaling business.
I have a situation, I found a great property that was corporate owned. It was a multiple offer deal that we won, but well after our date of acceptance. I have $1000 in earnest money in the property right now. My original plan was to finish the rehab, but someone wanted to buy it, so we set up a double close. My buyer failed to even get financing, so I was stuck. I told my buyers agent I would try to get financing and find another buyer as a back up.
The listing agent, who is total A**, found out I was trying to find another buyer and decided to charge me a bunch of late fees for not closing on time. They gave us a free extension, then retracted it.
The financing was not going to work out due to the lender requiring $7k out of pocket from me at closing. I didn’t have $7k lying around…
I just found out that the bank is not going to let us extend the closing, so my deal is dead.
Do I have any hope in getting my Earnest Money back?
Any thoughts are appreciated. The listing agent has supposedly blacklisted me, and my buyers agent has turned into a whiney used car salesman as well.
Thanks
I already spoke with you about this, but I thought that I would mention to all of you that if you’re going to write a contract, you should do everything possible to write yourself ways out of a contract to protect yourself.
You can write the contract subject to an inspection, financing, walk-through, 1031 exchange, leases being sent to you, etc.
Overdoing this and writing too many “subject-to’s” will make the seller uncomfortable, but writing one or two ways out of the deal is essential to cover yourself.
Protect yourself.
Agreed! It is the one time you slip that you get burned. It is only a grand, but I hate giving up anykind of money…
Thanks for the help.
next time use an exculpatory clause like this:
contingent upon:
Receipt and approval of all books, records of account, current tax bill, copies of all notes and Mortgages (Deeds of Trust), copies of all tenenacy agreements, current preliminary title report or abstract, management contracts, appliance warranties within _________ working days of acceptance of offer.
Excellent statement. I think you just summed up about three paragraphs worth of information in one sentance.
Try to give 100 at first as earnest money. Then tell them you have to go to bank and get thje rest 900 make sure they put this as addittional money., not earnest money. Talk to an attorney. This might work