Hi everyone im starting out wholesaling and i wanted to ask a quick question… One of my plans is to use real estate agents to get the deals but im not sure if i can assign a contract if dealing with them. The contracts that the Realtor use is it assignable? And if its not how can i get around that?

Yes, TREC contacts can be assigned. Buyer Example: John Doe and/or assigns. As always, please check with your attorney before entering into a legally binding contract. :slight_smile:

thanks for the info…Do you have to put up alot of earnest money dealing with realtors ? (i hope not cause i dont have alot money rite now)

Earnest money is agreed upon between the buyer and seller. Earnest money can be returned within the agreed time period.

Howdy Focusonmoney:

I always try $100 as earnest money except on commercial deals. Most Realtors will automatically fill in $500 unless you tell them different. I have written hot checks to the title company and later had to pick them up with cashiers checks. Sometimes we just do what we have to do to get a deal done. I do not recommend this as a normal routine but it usually will not kill the deal.

Some gurus suggest using 10 dollars as earnest money, saying that the $10.00 is all that is needed as consideration to make the contract legal and binding. I have never used this approach and can not respond on how it works. It could possibly work better without Realtors being involved.

Hope this helps.

thanks alot for the info…I have one last question (sorry about all these questions by the way). The last questions is do realtors usally ask proof of funds or not (because im not working with alot of cash)?

Howdy again Focusonmoney:

Proof of funds (POF) does not mean you need cash in the bank. A letter from a hard money lender that you are preapproved will do fine or any other conventional lender as well. A lot of sellers now require the POF and especially banks and other REO sellers. I have been preappoved by several hard money lenders and use these letters when the need arrises.

Hope this helps again

Some real estate agencies require $500 or higher. Make sure you put on the back of the check " subject to closing on 123 main st"

This way they won’t cash the check. Once you get another party, have them return earnest money to you.

And watch out for the agents that require you to put down 1%, tell them to take a hike. You should never do more than 500$ and POF.
Good luck