Updated about 8 years ago on . Most recent reply
Wholesaling question for seasoned investors
I'm new to wholesaling and figured BP is one of the best places to get your questions answered by experienced investor who live and die by real estate. My question for everyone is how do you figure out how much earnest money you put down??!! I'm reading everything from $1 or $10. So what is everyone preferred method...
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If you are actually debating between $1 and $10, does it matter? Unless you plan on forfeiting a lot of EMDs because you couldn't "close", even $10 isn't all that much money to lose.
If you are debating between the $1 wholesaler EMD verse the $5-10,000 EMDs that a lot of house buyers put down, then my guess is most wholesalers put down as little as possible, while most sellers want as much as possible. Just remember on the flip side, when you want your wholesale buyer to put down an EMD on your assignment, he too will want to put down a small amount of money, while you will want more. It's all part of the negotiations.