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Updated over 10 years ago on . Most recent reply
so many questions
I've started in wholesaling because I truly have no money or credit. I live paycheck to paycheck and even coming up with a $20 earnest money deposit could potentially be difficult!
For this reason I have many questions. However, here are my most pressing...
1. Can you write up an agreement of sale with no earnest money? Or can you write up an agreement of sale specifying that your end buyer will furnish the deposit? If so, how does a title company look at this? Should you be up front with your end buyer about this? What happens if the property isn't assigned within the time frame specified in the contract? Is it just null and void and you and seller walk away?
2. Is there a generic agreement of sale and assignment form I can get my hands on? Preferably something that I can use in any state(I've recently read Larry Goins book about remote investing) Obviously hiring a lawyer at $200/hr isn't in my budget! :)
3. Someone told me that I should send a none binding letter of intent to the seller that spells out the terms(ie I have no money, but want to assign your property to an end buyer, etc., etc.) before getting it under contract. Does having an executed LOI mean you have the property under contract-meaning can I find my end buyer at this point?
Thank you everyone in advance!
Most Popular Reply
If you're living pay check to pay check and $20 isn't in your budget, you need to get your financial house in order before you start thinking of getting into real estate. Whatever your challenges are now are only going to be multiplied by making more money. More money isn't the solution most people think it is. It doesn't make you happy. It rarely solves problems. 'More money' is the big lie. You need to learn to work with what you have. I'd recommend reading The Compound Effect by Darren Hardy. Think and Grow Rich by Napoleon Hill was also instrumental in my early (and continuing) financial education. The Millionaire Next Door by By Stanely & Danko is also a good read for those just getting started out.