Earnest money deposit

[B Lacy]

I know they say it take little to no money to start wholesaling but my issue I keep running into is everytime I find a good deal they want a 3000 emd deposit and I dont have it starting out. Is the Emd always 3000 and up? I need to get my feet wet in the game

[Jerryll Noorden]

Originally posted by @B Lacy:

I know they say it take little to no money to start wholesaling but my issue I keep running into is everytime I find a good deal they want a 3000 emd deposit and I dont have it starting out. Is the Emd always 3000 and up? I need to get my feet wet in the game

 Can you catch a fish with a brick?

Well probability says, if you infinitely try to throw that brick as hard as you can in the water eventually you should get one.

My point?

Is it possible to do wholesaling with no money... Sure it is possible, in theory... 

In real life though....

without money, no website, no marketing, no gas, no contracts, no... NOTHING.

Everytime you skimp out on one of these items mentioned above you make it harder to become succesful making a deal. If you now have MULTIPLE of these items missing, it becomes EXPONENTIALLY harder to make a deal.

People need to realize something..

The process of what wholesaling is... is no big deal: "Ohh pssffftt easy.. get a house under contract below market valiue, and then send that contract to a back-end cash buyer, send everything to an attorney, close and get your check". See? You do not need any money.

But HOW are you going to find a house under contract below market value? Unless your name is Jerryll Noorden, motivated sellers won't simply drop in your lap! You are going to need to figure out a way to make this happen. Yes it CAN be done for free... (theoretically free). I build myself a website, became the Supreme Overlord Supreme of SEO and credibility, thus ranking my website #1 on Google and voila, free highly motivated seller leads every day... BUT, I still had to pay for my website hosting... and doing it yourself, from scratch will take trial and error, which means more time, which means more money on clothing, food, mortgage, rent  what ever. The longer you are alive without making a deal YOU ARE SPENDING MONEY to just stay alive and all this IS a cost of doing business.

Now that you know this.. let me address your question.

The more credible you are the less you have to worry about EMD. The more motivated the seller is, the less you have to worry about EMD. Sometimes we put a deposit down, somethings we "don't".

We bought a house for 10 dollars once:

How much of an EMD would the seller expect from us if we are buying it for 10 dollars? 1 cent?

What most people do not understand is "motivated sellers". They think they got someone willing to sell their house for cash, that that automatically translates to a motivated seller. Absolutely not.

We hold all the cards. What I say goes. Not the seller. This doesn't mean you can take advantage of the seller. This simply means that we do not compromise the protocall we have established for our business and we are not going to bend over backwards for anyone.

And before you all give me lip about the 10 dollar house. ..

They asked us to buy their house. We said "no thanks". They asked us again.. we again said "no thanks. find someone else". They then explained their situation and their mom living in that house was not a healthy environment, they then begged us to take the house off their hands, so we said fine. They gave us the house, and their attorney had us put some sort of monetary value on the house so we just gave 10 dollars.

THAT is motivation!

No the EMD is not always 3K and up.

The EMD is what ever the 2 of you agree to. Keep in mind... EMD is a factor of trust. It is an insurance you will go ahead and buy their house, and not just bail mid transaction.

If you can build the right report, not only can you get a fair offer for their house, you can also have a lot of forgiveness when it comes to EMD!