All Forum Posts by: Jason Nderitu

They’re going to want between $1,000 and several thousand in fees before we even start talking interest. What can they take if you fail to pay that money? You’re offering zero collateral. If the deal gets dragged out or never closes, how do they force you to pay those fees/interest? What if the seller keeps the money because you miss a deadline?

It would probably be less than 1/2 as expensive to take a cash advance from your credit card or a title loan for a check cashing store. The reason the buyer is afraid you're wasting their time is because of wholesalers who don't even have EMD money. They truly are just wasting the seller's time.

 If you need a lender for an earnest money deposit it's clear that you will be doing nothing but wasting the seller's time.

If you care to understand the reach and influence of social media guru types, look no further than this post. A few years ago someone would have never thought lenders were the issue when they struggled to borrow unsecured funds to satisfy a wholesale EMD. It's a fascinating world of real estate transactional participants we now live in....

The lenders are't the issue here- you're asking people to take all of the risk on the transaction when you have none, no skin in the game. Why would anyone do that?

If you are confident you have a good deal and can help the seller, put up your own EMD.

Hi @Jason Nderitu,

Welcome to BiggerPockets!

I've been licensed and doing wholesaling for about 10 years now, and one of the best tips I can give you is to stay EXTREMELY focused on one market when you're starting out. It takes time to learn how a market moves, understand pricing trends, and build relationships with local investors, other dealmakers, vendors and title companies in the area. 

One of the biggest challenges for new wholesalers is "shiney object syndrome". It's why probably 80% (or more) of inspiring wholesalers either quit in 2-3 months or they're stuck doing 2-3 deals a year.

Jumping from one market to the next or one "winning strategy" to the next can slow your progress, drain your time, and burn capital before you ever gain any traction. Stick to one area, stick to the one strategy that is best suited for you, master them both and expand once you have a solid foundation. 

Feel free to reach out if you ever need quick tips or want to discuss any strategies. I also provide my contacts with a free wholesaling workflow, sample contracts, a generic script and a list of helpful apps, including our app PrimeTracers which can help streamline your lead generation process. 

Good luck on your journey! The road ahead won’t be easy, but once you master it, the rewards will keep coming.