Newbie MLS Wholesale Question

8 Replies

Hi there, we have an offer in on an MLS wholesale deal. We have put 1% Earnest Money to our Title Company in escrow. The contract is for sale currently and we're 6 days out from our option period.

Question is, do I get my earnest money back when the deal closes? So for example would I get  $5,000 assignment fee plus my $1000 earnest back? 

I am just guessing here because I don't wholesale properties. Wouldn't the HUD forms show where the money will be going to when closing on a property? So I would call the title company and find out where on the HUD forms you would find the amount that will be refunded to you.

Originally posted by @SheenaMichael Dillon :

Hi there, we have an offer in on an MLS wholesale deal. We have put 1% Earnest Money to our Title Company in escrow. The contract is for sale currently and we're 6 days out from our option period.

Question is, do I get my earnest money back when the deal closes? So for example would I get  $5,000 assignment fee plus my $1000 earnest back? 

 Why not have the new buyer give you $1000 or more earnest money and assume the money in escrow.

Originally posted by @Richard Dunlop :
Originally posted by @SheenaMichael Dillon:

Hi there, we have an offer in on an MLS wholesale deal. We have put 1% Earnest Money to our Title Company in escrow. The contract is for sale currently and we're 6 days out from our option period.

Question is, do I get my earnest money back when the deal closes? So for example would I get  $5,000 assignment fee plus my $1000 earnest back? 

 Why not have the new buyer give you $1000 or more earnest money and assume the money in escrow.

 Sounds like a plan! Thank you! 

This isn't a hud just a residential purchase. 

Originally posted by @Richard Dunlop :
Originally posted by @SheenaMichael Dillon:

Hi there, we have an offer in on an MLS wholesale deal. We have put 1% Earnest Money to our Title Company in escrow. The contract is for sale currently and we're 6 days out from our option period.

Question is, do I get my earnest money back when the deal closes? So for example would I get  $5,000 assignment fee plus my $1000 earnest back? 

 Why not have the new buyer give you $1000 or more earnest money and assume the money in escrow.

 Yes, usually the buyer would be the one with a "non refundable" fee that goes towards the purchase. Could cover the earnest money

The title company typically credits the earnest money to the buyer at closing unless otherwise stated in the contract.

Originally posted by @Mercedes Avionn :

The title company typically credits the earnest money to the buyer at closing unless otherwise stated in the contract.

 Thank you Mercedes! 

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