What do you offer as Ernest money on foreclosures ??

[Account Closed]

We have been buying foreclosures off the MLS. are offers are cash purchases no inspections and our agent has been suggesting EM of 10% of the offer price. My issue is that some of these transitions are taking up to 6 months to close. So all that cash locked up I'm EM is killing me.

I am planning on making an offer on a home path property ASAP and wanted to see what other cash buyers are putting as EM on their offers. 

Thank you in advance.

[Corey Beckwith]

Hi,

I typically only put down $1,000 for earnest money for deals I get off of the mls. I'm from New Jersey and it may be different as a standard where you're from. However, maybe you should speak with your agent and let them know that you can't put that much money down because it's preventing you from getting as many deals as you'd like. In my experience I also found that some realtors treat us investors the same as end buyers who typically do put down more earnest money, maybe because that's what they're use to doing with the end buyers. When I come across that I usually just change realtors who understands how I operate. Or if you really like the one you're working with, just let them know how you plan to operate on your future deals and see what they say.

All the best
Corey