Busines with wholesaler-demands ernest money 5k in his LLC name

[Jeyo Punnakottil]

Will you do business with a wholesaler who wants 5k Ernest money check in her LLC name to lock up the deal.Never done business before with this wholesaler but the deal she brought is a sold flip with 30-35k profit

Some red flags from her side

1.Hard to get hold off using the business number she mentions in her email blast but finally gave her cell # once i got hold of her and  said i want to lock in the deal by doing deposit.

2.Claims there is an open house showing next tuesday but if i want she can cancel the showing if i accept the full wholesale price of 165k and do the 5k earnest money deposit check in her LLC name

3. She says she will not get keys to ppty till tuesday so i cannot see the ppty till tuesday. I have to run numbers based on photos that she send.

4.I asked her to send me the contract for my attorney to review, she sends me the assignment contract between her LLC and ME (1PAGE DOC)but doesnot send me the original contract between her LLC and the SELLER.

[Tom Gimer]

Never, ever give an EMD directly to a seller or to a wholesaler/third party who has a property under contract.

Insist that the EMD be held by someone who is bound to hold it in accordance with reasonable terms and is subject to discipline for failing to do so... licensed real estate broker, attorney, title company.