The Most Basic Question.

4 Replies

This is going to be the most basic question on BP I'm asking it for my need of my own answers not reading though forums if tho that's what I should be doing but I can't find the right answer that help explain it to me.

Question: With the whole buying process what are the full steps from signing the contract to assisning the contract from a wholesalers prospective? I wanna know who holds the earnest money ? Who needs what and what needs to be done by what time and so in.

You should consult with an experienced real estate attorney in your area.  

Any and all funds should be held by a disinterested third party such as an escrow agent/title company.  None of the parties to the transactions should hold funds. Avoid having a real estate broker holding any funds including earnest money. The contract language should set forth who holds funds in escrow. 

@Ray Agosto , I'm throwing another vote for what Jim said. It is supremely important that a disinterested third party holds the earnest money.

I would go so far as to say this should be a deal breaker if the seller refuses to budge. Something's wrong there.

@Ray Agosto

While your question seems very basic, it's not really. Mindy and Jim are correct, but there is much more to it.

Wholesaling the way the gurus teach it has a lot of ethical and legal issues, but set that aside, you can read the forums.

As to steps, it depends on the property, buyer and seller requirements, title examination, lien releases and other conditions as to what must be accomplished after a contract is accepted and to get to settlement. There are no 1, 2, 3 steps that must be followed, it depends on the deal and what issues might pop up, and some type of issues generally pop up.

That's why you need to learn the basics of real estate before attempting to deal in real estate. Learn the basics and your questions will be answered. 

Take a good week to learn the basics, it is much quicker and you'll learn properly instead of trying to piece things together for yourself from forum comments, blogs or podcasts, even when they call such materials the "basics" it's not the basics of real estate and everything you need to know isn't going to be contained in those sources.......promise you!

Good luck, start at the beginning just like you did when you started school, there is a reason you begin in the first grade, so don't skip anything. :)     

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