All Forum Posts by: Daniel Salmeron

Hey everyone! Im new to wholesaleing and have been cold calling leads for the past couple of days and came across a seller willing to let the property go for under market value but is requiring a 15% down or EMD at signing. I would appreciate any advice as to how to go around that or how to come up with that EMD. I am willing to connect and bring in a partner that would take over and just let me tag along the ride for experience with no assignment fee. Thanks in advance!

If the seller is asking you for such a large EMD, it is because the trust isn't there. He might be (probably is) thinking you will not fulfill your promise to buy. You need to have/build stronger rapport with the seller and speak from confidence of this being a normal thing you do (buying off market properties).

You want to say something like "Hey MR./MRS. BUYER, putting $15% down is unusually high... I buy 5-10 homes a month and the typical amount I put down is $500. I can put $1,000 to make you feel more comfortable but at 15% it would not make sense for me to tie up that much money, especially if I am closing quick with all cash."

You can follow up with "Imagine if I put 15% down on all my properties, I would have so much money tied up and it would hold me and my partners back from buying other houses. Your house is not the only one we are looking to buy this month. So let's do the $1,000 and get everything moving."

Hey Ramandeep, Thanks for that advice! Your completely right, it did come down to trust. Looks like the seller had multiple cash agreements fall threw and was in no rush to sell too. Ill definitely make to to follow up though!

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Originally posted by @Dustin P.:

1% is typically the standard here in Phoenix as well but really if you're a cash buyer like you say you are then 15% shouldn't be a big deal, as long as you have an inspection period you can get it back. I would also recommend finding a cash buyer to partner with to put up the money

Hey Dustin, thanks for that advice, that makes complete sense. Definitely need to dig that well first before needing the water, and that is the main reason why that 15% down was an issue. I am still trying to build my cash buyers list. Ill work on that list so that wont be an issue for future deals. Thanks for help!

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Originally posted by @Tom S.:

@Daniel Salmeron As Ryan mentioned, 1% down for EMD is pretty standard. Here in VT, many houses I've bought have been in the $100k-200k range, so only $1-2k down. In the past we've sometimes moved it up to $2500 just to catch their attention that we're serious buyers.

Good luck!

Hey Tom! Thanks for your input. I agree with moving it up 500, thats understandable but that 15% completely threw me off! haha Ill be sure follow up with the seller since with a small increase over the standard 1% like you mentioned. Thanks again!

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Defiantly will move forward with that advice, thanks! @Ryan Whitcher

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Sioux falls, SD

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Hey Victoria! First off, congrats on obtaining your first contract! I am also starting out with virtual wholesaling and have had the same question. The top answer i got to find buyers was to check your market for recently sold or listed rehabs, and contact the agent to ask if their seller which is usually an active flipper would be interested in another deal. Best of luck!

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Hey everyone! Im based in SoCal and am looking to start REI. Mostly looking for out of state investments since SoCal is way over my budget for investment properties. Been looking into wholesaling as my first step in. I have lots of time and knowledge since I've indulged myself in books, podcasts, youtube, etc since the beginning of this year just need the money side of the triangle to complete! Looking for any advice or anyone who needs to add a determined knowledgeable member to your team. Thanks in advance!

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All Forum Posts by: Daniel Salmeron

Daniel Salmeron has started 3 posts and replied 18 times.

Post: EMD for wholesale deal

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Post: Property in Catawissa, PA

Post: REI Rookie, any advice welcome!