How much earnest money to put down on a p&s agreement?

[Daniel Pitta]

(Wholesaling question)

When crafting a purchase & sale agreement with the seller, how much of an EM deposit is customary to put down in order to tie the property up so you can flip it to the end buyer? Also, if you're unable to find a buyer during a 30-day period, how do you approach the situation with the seller that has already agreed to sell you their property? Thanks in advance.

[Philip Williams]

I don't know about everyone else but I generally only put 1k down for earnest money on anything I am trying to wholesale. If i'm unable to find a buyer within the 30 days period I go to the title company and purchase the property like I told the seller I was going to. If you say you are going to close within 30 days then close within 30 days! Tell the seller you are going to sell to a 3rd party they might be open to you helping market for a lower fee and faster closing than with a realtor. If your asking how to weasel your way out of the deal I don't have any experience with that sorry.......