Wholesaling Closing Questions

[Chris Graf]

Hello

I am about to put in a offer to a home that is currently going on 2 months mortgage past due, I got off a direct mail campaign. I want to put it under contract and then sell the contract to a cash buyer rehabber for a profit. Before I Sent a offer I wanted to clarify the process. After I send the offer and if It gets accepted, how do I determine the down payment? One other question how do I get the profit off the sell of contract?

[Brian L.]

You don't need a down payment because you are not financing the deal. Remember, when you give a down payment it goes to a bank not a seller. For the contract you will simply put an earnest money deposit in escrow with the title company or closing attorney. You typically go as low as possible for the EMD; I wouldn't do more than $100.