What would you do if you needed $3K EMD by tomorrow?

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What would you do if you needed $3K EMD by tomorrow?

Reese Davis
Raleigh, NC · Member since 2016 · 37 posts · 8 votes

Good Morning ladies and gentlemen. I'm trying to weigh my options on something. Maybe you can help me. I bid on an online auction property and won for $6,180. In the listing it said no earnest money deposit was required for the property. However, yesterday the portfolio manager sent me the contract asking for $3K EMD. When I mentioned that the listing stated no EMD was required, it said it was incorrect and EMD is required to proceed. What are my options if I don't have the $3K and my credit sucks?? What would you do?? Thanks in advance for all valuable responses.

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Don Gouge
Johnson City, TN · Member since 2017 · 209 posts · 367 votes
7y

You have no cash and can't borrow any. What do you want us to tell you? Rob a bank? Wish upon a star? You just want to get mad when you are given solid advice outside of this odd deal. Here is my advice if you want to be successful in real estate but you don't want to hear. Real estate can be a small world. Be a man that the other party knows can carry thru with your commitments. Don't get into deals where you promise cash you can't either pull out of your mattress or get out of the bank the next morning. Honestly, if you can't lay your hands on cash in 24 hours you don't need to be involved in real estate. Build your real estate career on a solid foundation, not one built on dreams and gimmicks. 

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  • Taylor Chiu
    Real Estate Agent · Salt Lake City, UT · Member since 2014 · 473 posts · 230 votes
    7y

    @Reese Davis - Do you have access to any credit at all? It's not ideal, but you could do a cash advance for the 3k if the deal is really worth it. 

    Or is there someone that could loan you the 3k for a fixed fee or a part of the deal? Or possibly a payday loan?

    1Reply
  • Kyle Lewis
    Real Estate Agent · Los Gatos, CA · Member since 2016 · 88 posts · 39 votes
    7y

    @Reese Davis - To add on to Taylor's advice, maybe spend an hour on the phone with a RE lawyer  familiar with auctions to assess options? Hope this helps. Good luck with the deal!

    0Reply
  • Federico Gutierrez
    Realtor · Cleveland, OH · Member since 2015 · 2k+ posts · 857 votes
    7y

    Why you bidding on an auction if you don't have the money?

    Obviously with auction you pay cash. So you bid 6180 and won. I'm assuming you got the cash for that else why you bidding. So use that money as EMD will be subtracted from those proceeds.

    8Reply
  • Aaron Hunt
    All Over, USA · Member since 2017 · 689 posts · 756 votes
    7y

    Bruh. If I got a property for $6,180...I’d turn around and give it right back. Suspect city.

    *grabs popcorn*

    1Reply
  • Reese Davis
    OP
    Raleigh, NC · Member since 2016 · 37 posts · 8 votes
    7y
    Originally posted by @Federico Gutierrez:

    Why you bidding on an auction if you don't have the money?

    Obviously with auction you pay cash. So you bid 6180 and won. I'm assuming you got the cash for that else why you bidding. So use that money as EMD will be subtracted from those proceeds.


    Why you responding to posts without reading the whole thing?? I clearly said the auction listing stated there was no EMD so I was expecting to bring the money to closing. I didn't anticipate having to wire it within 24-48 hours. But Thanks for your non-valuable comment.

    0Reply
  • Reese Davis
    OP
    Raleigh, NC · Member since 2016 · 37 posts · 8 votes
    7y
    Originally posted by @Aaron Hunt:

    Bruh. If I got a property for $6,180...I’d turn around and give it right back. Suspect city.

    *grabs popcorn*


    Bruh. It's an auction. They have lots of properties for $10K or less...as well as lots of properties over $10K...just depends on the condition and location of property.

    0Reply
  • Reese Davis
    OP
    Raleigh, NC · Member since 2016 · 37 posts · 8 votes
    7y
    Originally posted by @Kyle Lewis:

    @Reese Davis - To add on to Taylor's advice, maybe spend an hour on the phone with a RE lawyer  familiar with auctions to assess options? Hope this helps. Good luck with the deal!

    Nope...doesn't help but Thanks for taking the time to respond.

    1Reply
  • Reese Davis
    OP
    Raleigh, NC · Member since 2016 · 37 posts · 8 votes
    7y
    Originally posted by @Taylor Chiu:

    @Reese Davis - Do you have access to any credit at all? It's not ideal, but you could do a cash advance for the 3k if the deal is really worth it. 

    Or is there someone that could loan you the 3k for a fixed fee or a part of the deal? Or possibly a payday loan?

    If I could borrow it, I would...but Thanks for your response.

    0Reply
  • Sam Craven
    Houston, TX · Member since 2011 · 673 posts · 360 votes
    7y

    find a partner man, best you can do.   Give them 50% for putting the money at risk.  Call local wholesalers and housebuyers and hopefully they have a good reputation so you wont get screwed.

    In the future make sure you can perform on what you bid on.

    2Reply
  • Reese Davis
    Raleigh, NC · Member since 2013 · 3 posts · 0 votes
    7y

    Thanks Sam!!

    0Reply
  • Ramon Flores
    Rental Property Investor · Los Angeles, CA · Member since 2016 · 172 posts · 122 votes
    7y

    @Reese Davis Can you please give us more info on this? It doesn't sound right?

    You won an auction, for $6,180 and don't have 3k. I would assume when buy you would have at least 30k ready to fix the property. 

    If I were you I would ask to bring it down to $1000 because it was not documented anywhere in the auction that it was 3k. If you can't borrow it and if you don't have credit, pawn or use something as collateral for someone else to give you the money. 

    0Reply
  • Grant Rothenburger
    Investor · Taylor Mill, KY · Member since 2016 · 2k+ posts · 964 votes
    7y

    Shouldn't you have the money if you're bidding at an auction? @Reese Davis How were you going to purchase the property to begin with?

    2Reply
  • Reese Davis
    OP
    Raleigh, NC · Member since 2016 · 37 posts · 8 votes
    7y
    Originally posted by @Ramon Flores:

    @Reese Davis Can you please give us more info on this? It doesn't sound right?

    You won an auction, for $6,180 and don't have 3k. I would assume when buy you would have at least 30k ready to fix the property. 

    If I were you I would ask to bring it down to $1000 because it was not documented anywhere in the auction that it was 3k. If you can't borrow it and if you don't have credit, pawn or use something as collateral for someone else to give you the money. 


    I never said I didn't have $3K. I just don't have access to it in 24 - 48 hours since I would have to transfer it from one of my forex accounts. As I already stated, there was supposed to be no EMD so the $6,180 wouldn't have been due until closing which is on June 19 and wouldn't have been a problem. Also, I'm not planning on fixing the property, just selling as-is to a buy and hold investor. Your advice on getting them to lower it since it wasn't documented is a great idea. I will ask and see what they say. Thanks for taking time to respond.

    0Reply
  • Reese Davis
    OP
    Raleigh, NC · Member since 2016 · 37 posts · 8 votes
    7y
    Originally posted by @Grant Rothenburger:

    Shouldn't you have the money if you're bidding at an auction? @Reese Davis How were you going to purchase the property to begin with?

    Read my comments above....I'm tired of repeating myself.

    0Reply
  • Reese Davis
    OP
    Raleigh, NC · Member since 2016 · 37 posts · 8 votes
    7y
    Originally posted by @Grant Rothenburger:

    Shouldn't you have the money if you're bidding at an auction? @Reese Davis How were you going to purchase the property to begin with?

     Read my comments above...I'm tired of repeating myself.

    0Reply
  • Lee Bell
    Real Estate Appraiser · Isabella lake, CA · Member since 2018 · 628 posts · 491 votes
    7y

    I would write a check or go get a cashiers check if required.

    You can'y buy without money.

    0Reply
  • Reese Davis
    OP
    Raleigh, NC · Member since 2016 · 37 posts · 8 votes
    7y
    Originally posted by @Lee Bell:

    I would write a check or go get a cashiers check if required.

    You can'y buy without money.

    I'm convinced many of you leave comments JUST to boost your post count. Thank You for letting me know I can't buy a house without money. I had no idea.

    2Reply
  • Don Gouge
    Johnson City, TN · Member since 2017 · 209 posts · 367 votes
    7y

    You have no cash and can't borrow any. What do you want us to tell you? Rob a bank? Wish upon a star? You just want to get mad when you are given solid advice outside of this odd deal. Here is my advice if you want to be successful in real estate but you don't want to hear. Real estate can be a small world. Be a man that the other party knows can carry thru with your commitments. Don't get into deals where you promise cash you can't either pull out of your mattress or get out of the bank the next morning. Honestly, if you can't lay your hands on cash in 24 hours you don't need to be involved in real estate. Build your real estate career on a solid foundation, not one built on dreams and gimmicks. 

    8Reply
  • Reese Davis
    Raleigh, NC · Member since 2013 · 3 posts · 0 votes
    7y
    Originally posted by @Don Gouge:

    You have no cash and can't borrow any. What do you want us to tell you? Rob a bank? Wish upon a star? You just want to get mad when you are given solid advice outside of this odd deal. Here is my advice if you want to be successful in real estate but you don't want to hear. Real estate can be a small world. Be a man that the other party knows can carry thru with your commitments. Don't get into deals where you promise cash you can't either pull out of your mattress or get out of the bank the next morning. Honestly, if you can't lay your hands on cash in 24 hours you don't need to be involved in real estate. Build your real estate career on a solid foundation, not one built on dreams and gimmicks. 

    Do you feel better now since you got that off your chest?? You clearly didn't read or comprehend any of my posts. I would never promise cash that I didn't have. The listing said there was no EMD required for the property so it was a mistake on their end. But Thanks for your non-valuable response. I don't appreciate your time.

    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    7y

    Reese you just added what those of us that fly little airplanes call an addition to our experience bucket like not flying through violent weather LOL

    we do a lot of buying at on line auctions.. there is always a deposit.. many times a deposit of 2500 just to make the bid..

    So not sure how information got out there that no EM was needed.

    now some areas in these low value assets folks use 10 bucks and such..

    Anyway.. on larger deals we buy that are over 100k to 200k we usually have to put up 5 to 10k.. as EM now for me I like that keeps the wholesalers at bay.. and evens the playing field your not competing against folks that cant perform .

    now you know be ready next time..  there are plenty of these properties .. PLENTY>.   And stay away from thunderclouds.

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    0Reply
  • Reese Davis
    OP
    Raleigh, NC · Member since 2016 · 37 posts · 8 votes
    7y

    Hey Jay...yes, there usually is a deposit and that's why I was so surprised when I seen this and jumped on it after doing more research. Here's a screenshot for the non-believers. I have no reason to lie and I can read very well. This is a screenshot I took 2 days ago. I just checked the website again and I see they have updated it to $2,500 but my contract still says $3,000 so go figure.

    0Reply
  • Daren H.
    Real Estate Investor · Desoto, TX · Member since 2013 · 560 posts · 528 votes
    7y

    Be thankful that the Investing Gods were looking out for you. You don't have the money, sounds like you don't have the experience, and you are trying to buy a $6K property as if it wouldn't require more money. Again, just be thankful there was an error and you were saved from yourself.

    1Reply
  • Reese Davis
    OP
    Raleigh, NC · Member since 2016 · 37 posts · 8 votes
    7y
    Originally posted by @Daren H.:

    Be thankful that the Investing Gods were looking out for you. You don't have the money, sounds like you don't have the experience, and you are trying to buy a $6K property as if it wouldn't require more money. Again, just be thankful there was an error and you were saved from yourself.

    Here we go...another non-reader. I do have the money. I just can't access it within 48 hours. Why is that so hard to comprehend?? And I didn't TRY to buy a $6K property. I bought it and closing on June 19th. And it's NOT going to require more money because I'm selling it IMMEDIATELY to a buy and hold investor. People think they know everything and know nothing SMH.

    0Reply
  • Daren H.
    Real Estate Investor · Desoto, TX · Member since 2013 · 560 posts · 528 votes
    7y

    @Reese Davis sounds like you have it all figured out, so pay me no mind. Good luck!

    5Reply
  • Joe SplitrockPro Member
    Moderator
    Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
    7y

    @Reese Davis if you need quick cash, there are limited options:

    1. Credit card cash advance 

    2. Payday loan - may require car title 

    3. Borrow from friends or family

    4. Pawn shop, but need something of value (jewelry, guns, electronic devices)

    5. Sell your belongings on Facebook Market place or Craigslist

    1Reply
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