I need another agreement available and safe to use for wholesalers in New Jersey. I've heard making the EMD due upon completion of inspection, but does this mean I have to give it upon inspection period completion no matter if the deal goes through or not or if the inspection period was successful or not?
I’m looking for something simple that I can use in New Jersey that protects wholesalers. Need help with an agreement here!
Make the offer in an LLC. The LLC pays the EMD. Sell the LLC (instead of selling the contract). Make the purchase of the LLC equal to the wholesale agreement and the EMD together.
When you sell the LLC, after inspection by the buyer, the Buyer simply executes the purchase agreement in the name of the LLC...as the new owner of the LLC.
Make the offer in an LLC. The LLC pays the EMD. Sell the LLC (instead of selling the contract). Make the purchase of the LLC equal to the wholesale agreement and the EMD together.
When you sell the LLC, after inspection by the buyer, the Buyer simply executes the purchase agreement in the name of the LLC...as the new owner of the LLC.
@Fremy Rosso - When it comes to legal contracts, I always recommend talking to a local lawyer who knows real estate. If you don't know any good ones, I would go to your local real estate group and ask around.
@Joe Villeneuve - Good to see you (digitally)! It's been a few years since I've been at the Ann Arbor group, but I'm glad to see you here.
A EMD is seller assurance that you will perform the deal. The more contingency's you put in your contract the less likely they will get signed. I would suggest you just put in a low EMD of $100. Tell them it will be deposited in escrow at time of acceptance.
@Fremy Rosso - When it comes to legal contracts, I always recommend talking to a local lawyer who knows real estate. If you don't know any good ones, I would go to your local real estate group and ask around.
@Joe Villeneuve - Good to see you (digitally)! It's been a few years since I've been at the Ann Arbor group, but I'm glad to see you here.
Hey Brandon. Good to see you too. We can discuss what we're doing now.
The LLC sale is cool and works well for savy investors but it is totally unnecessary and comes with its own set of hurdles.
Our EMD is $10 on our sales agreements because we represent ourselves correctly to the sellers. We do not represent ourselves as the buyer like most beginners (who give us a bad name).
If you are dealing with a private seller and not a bank/institution, the EMD deposit should be a very small obstacle.