earnest money. escrow?

earnest money. escrow?

Real Estate Investor · San Antonio, TX · Member since 2008 · 42 posts · 1 vote

since you wanna give the least money you can for earnest money lets say $10 what do they do with that you just hand them ten dollars? It doesnt seem like you would open an escrow for $10. how does that work? thanks

0Reply
60 views

18 Replies

Jump to latestLatest
  • Real Estate Investor · San Antonio, TX · Member since 2008 · 42 posts · 1 vote
    17y

    anyone?

  • Real Estate Investor · Cleveland, OH · Member since 2008 · 48 posts · 17 votes
    17y

    Cody,

    If you're lucky enough to get a contract for $10 Bucks, yes, you hand them the dough. Escrow comes later.

  • Indianapolis, IN · Member since 2008 · 759 posts · 185 votes
    17y

    John is correct, if they accept $10, then you just cut them a check and proceed accordingly.

    Now I come from the school of putting down a large chunk for earnest money to show that I am serious and not playing games.

    There are enough contingencies that can be written to protect your money, and if I want the deal, I want the deal.

    I know many people will disagree with me on this, but that is just my personal preference. If you are a brand new investor, then less is probably more............So just work the deal that makes you most comfortable.

    Our last house we bought for $18K, and put $10K down in earnest money. For some reason, we got to the closing table real fast! LOL

    I have never been one to step over dollars to pick up a nickle, and I feel that there are better things to pound away at when negotiating!

    Good Luck!

    - Harrison

  • Investor · Detroit, MI · Member since 2008 · 296 posts · 11 votes
    17y

    What about a person who is starting out with absolutly nothing, no money no good credit? Would a proof of funds be sufficient?

  • Altus, OK · Member since 2008 · 2k+ posts · 690 votes
    17y
    Originally posted by Tiara Murray:
    What about a person who is starting out with absolutly nothing, no money no good credit? Would a proof of funds be sufficient?


    How would a proof of funds be sufficient if you have no money to prove.
  • Will BarnardPro Member
    Moderator
    Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
    17y
    Originally posted by Mr_Investor:
    Originally posted by Tiara Murray:
    What about a person who is starting out with absolutly nothing, no money no good credit? Would a proof of funds be sufficient?


    How would a proof of funds be sufficient if you have no money to prove.
    Exactly!

    Harrison,
    I am of the same school as you as well. Especially with bank REO properties, I make very large EMD's to show them I am a "real player" and not some joker trying to get ultra creative and forge a POF. :lol:

  • Investor · Detroit, MI · Member since 2008 · 296 posts · 11 votes
    17y

    Well Im just starting out and I dont have any money at all because I am using it all for college.

  • Real Estate Investor · St. Petersburg, FL · Member since 2008 · 190 posts · 91 votes
    17y

    Tiara,

    I got started when I was flat broke, too.

    My first deals were with homeowners, and I never put more than 10 bucks down for an earnest money deposit.

    It is definitely much easier to get started when you have cash on hand, but when you don't, you gotta do what you gotta do.

    No shame in that.

    Steph

  • Investor · Detroit, MI · Member since 2008 · 296 posts · 11 votes
    17y

    Thanks Stephani...

  • Indianapolis, IN · Member since 2008 · 759 posts · 185 votes
    17y

    Tiara,

    Stephani is 100% correct. If you do not have cash, then you will just need to get more offers out, talk to more people, and hustle, hustle, hustle!

    No shame in that at all, and it will only help you in the long run!

    The important thing is that you are taking action, and since I have read many of your post, I know that you are on the path to success!!!

  • Investor · Detroit, MI · Member since 2008 · 296 posts · 11 votes
    17y

    Thanks for the encouragment Harrison. I am trying very hard to get started, I just dont want to jump in head first and fall on my face. My grandmother always say "better safe than sorry" So I am disecting every single approach to coming into REI

  • Real Estate Investor · St. Petersburg, FL · Member since 2008 · 190 posts · 91 votes
    17y

    Have you thought about bird dogging for another investor?

    That won't require any cash on your part, and is a great, risk-free way to learn the ropes.

    Steph

  • Investor · Detroit, MI · Member since 2008 · 296 posts · 11 votes
    17y

    I am a little skeptical of bird-dogging being that I've heard a lot of bad stories from bird dogs not getting paid

  • Real Estate Investor · Fayetteville, NC · Member since 2009 · 2 posts · 0 votes
    17y

    Taira,

    You are starting off at a great age. This is the best time for you to learn the ropes. Bird dogging may not pay money but the knowledge you will gain may change your life not to mention you are gaining experience. If you look at it you are gaining knowledge and experience but only if you sacrifice time.

  • Curt DavisBusiness Member
    Flipper/Rehabber · Memphis, TN · Member since 2008 · 5k+ posts · 2k+ votes
    17y

    Tiara,

    You should get a mentor or get in touch with someone who would give you some coaching. I understand you have no money and you are in college but lets face it, to become a real estate investor who wants to sell property is not something you just do. You need to make sure you take the necessary steps. There are many people here on BP who are seasoned investors and YES there is a ton of free info. Find someone who will take you under their wing and guide you in the right direction. My opinion of what you should do is different than others. That is my advice.

    Curt Davis - KAIZEN Realty538 Reviews
  • Will BarnardPro Member
    Moderator
    Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
    17y

    I would agree with Curt on his advice. I have seen meany of your posts asking questions on a large variety of different topics and even some wihc advertised you were a wholesaler. I have a strong feeling you are "jumping the gun" and need to start with some education/training first, and pick one focus and go after it, rather than spreading yourself too thin over a multitude of options.

  • Investor · Detroit, MI · Member since 2008 · 296 posts · 11 votes
    17y

    My focus is wholesaling for now. In the other posts, I was simply inquiring about certain situations that I may incur as I move on flipping or landlording.

  • Will BarnardPro Member
    Moderator
    Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
    17y

    I understand that Tiara. I was only suggesting a more fcused and straight line apporach to get from point A to point B with A as the beginning and point B as a successful deal closing.

    Doing zig zags along the way only delays the timeframe in which you can complete a deal.

Join the conversationCreate a free account to reply, vote on answers and follow this thread.