What kind of earnest money deposit should I put up to the Seller, if my exit strategy is to Assign the contract to someone else (Rehabber)?
$10.
I have a question to add.
If you find a house that is worth 100,000 but you can buy it for 50,000.
Your plan is to sell it to a rehabber/buyer for 60,000.
[b]Do you have to actually buy the house for 50,000?
Or can you just give the seller a certain amount of money(small amount) and make it where you have like a week to find a buyer(for 60k). If you dont find a buyer within the agreed time you simply loose your small amount of money?
If so, how much money do you usually have to put down for the seller to do this? How long do they usually give you? I cant possibly imagine only giving somebody like $100 and they give you a week to find a buyer.[/b]
If thats the case, you can turn $100 into 10,000 if you sell the house for 60k.
Hoosier
You just described an option. You pay the owner of the property $XX for the exclusive right to buy it for a specific price within a specified period of time. It can be for a day, a week, a month or a year. it can be for $1, $10, $100, $1000, $10,000 or higher.
Options are literally for whatever you can convince the owner to take.
Hey Hamp, if your earnest money is $10 do you think anybody is going to take you seriously?
I usually put down $100 in earnest $ to show them I’m serious. No more than that though.
If you do this, do you put it on a contract agreeing that you have rights to sell the house? Or do you guys just verbally agree that that you have exclusive rights to sell the house?
Someone please correct me if I’m wrong, but I’m pretty sure if you you have the right to buy you have the right to sell. Ask a real estate attorney about options in your particular state. I called several and had a quick FREE conversation on the phone and found it’s no problem where I’m at.
Hope that helps,
Dan