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Updated almost 10 years ago on . Most recent reply

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12
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Vincent Coney
  • Harrisburg, PA
1
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12
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Wholesaler newbie question

Vincent Coney
  • Harrisburg, PA
Posted

I have potential wholesale deal on the table. Its a multi unit that was appraised at 106k and me and my partner got her down to 82k. We have a potential buyer lined up that is willing to take off our hands between 88-89k. This would be my first wholesale deal. We sent her a basic contact that listed the earnest money etc. She sent the contract back as a total revision. She obviously got her attorney involved. Our biggest gripe is she didn't like that we put $10 in the earnest money category. She said that is not a true deposit and she said it should be $1000. I'm not willing to put up a $1000 especially on my first deal. How should we deal with this objection ? Any help would be appreciative. 

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619
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Terry Royce
  • Real Estate Investor
  • Baltimore, MD
75
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619
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Terry Royce
  • Real Estate Investor
  • Baltimore, MD
Replied

If the seller asks for verification of reciept in escrow then the title company will let them know that it has or has not been received/deposited.

Do you have any kind of inspection window?


What's the actual ARV, and how much in repairs does it need?

Some sellers are ok with little to no deposit. Others want more.

I have put up $1,000, $5,000, and $20,000 deposits within the last 3 months on properties. All were non-refundable/no inspections.

Another idea could possibly be to put up $250-$500 at contract signing and the remaining $750-$500 upon the expiriation of any inspection periods.

If you aren't comfortable just move on, and revisit later....maybe the seller will get more motivated.

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