Question about down payment?

[Matthew J. T.]

As a wholesaler I know you shouldn't have to put anything down like, that, but when you see some for sale by owners that are wanting for example 800 dollar down payment, how do wholesalers go about getting a contract signed if the person is wanting a down payment for the property? how do you avoid this?.

[Ryan Webber]

Matt, I think you are confusing "down payment" with "earnest money deposit". Some FSBO's may be selling "Owner Will Carry" in which they themselves are financing the property for the buyer. They will advertise "$1,000 down". A down payment is an initial payment made in order to obtain financing, but an earnest money deposit is a deposit made in order to secure a contract. They are two different things.

You won't be putting a "down payment" on a property that you are wholesaling, but you might put "earnest money" on a property. You should do a forum search for "earnest money". We have had dozens of in-depth conversations about why and how to give or not to give earnest money when wholesaling.