Not an expert, but it seems to me that the earnest money and the contract should happen at the same time. if you don't have $500 to $1000 for earnest money, who do you know who does that you could share the profits with?
Lekisha, I haven't done a wholesaling contract, so I'm not the best source for you. @Marvin McTaw , I recall you are a wholesaler, can you help with this question?
@Lekisha Cole earnest money is typically deposited after an agreement is signed. Most agreements have a window of a few days after agreement signing (or binding agreement date) for earnest money deposits to be made but it is something that can and often is negotiated. I think the bigger issue here is the Seller's trust. Work to build rapport, figure out their needs and then highlight how your accomplishments can help to solve their needs.
I would encourage you to deposit the money to get the agreement signed if you're working with a Seller who's requiring you to put up what you would deem a small amount of money. If it is a sizable amount of money, we would explain the way things are done and do other things to build rapport and trust with the Seller. It can be helpful to have an authority figure like your closing attorney to explain the way deals are typically done with the Seller.
We've put up earnest money deposits large and small, slowly and immediately to not only closing attorneys but also directly in the Sellers' hands. Giving money directly to sellers is not typical for us and we only do it when it makes sense for the specific situation.
I hope it helps!
P.S. Apologies for my delayed response here. Thanks for the shout @Amanda G.
If they are in foreclosure, don't sign unless you can perform. Failing to do so will harm the seller. When you sign a contract, HONOR your commitment.
BTW--it is illegal to market properties you do not own unless licensed. See 475.42 and 475.43
@John Thedford has a valid point. Make sure you know what you are getting into. Especially when dealing with foreclosures.
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