25-1 strategy, making offers now, but earnest money?

On the types of properties you are working with you should be able to pay your earnest money AFTER you get the property accepted. Find out the law in our state. If you have 72 hours write "Ernest money to be paid within 72 hours of acceptance." Upon acceptance start getting buyers to the property. You can then get a buyer to pay the earnest money. That same buyer will take your assignment.

Good Luck!

I call to schedule a time I can come in and fill up contracts for offers, and the agent said to have a proof of funds in hand, just n case there is a counter offer.
Now I researched and got some forums that mentioned "coastal funding" for proof of funds. But I read into it and they have it as, they fund only back-to-back funding. Do I still need "as assignee" on the contracts?

I put in eleven offers today because that's all the properties he could give me fitting my criteria. He is now calling me what about the earnest money and the proof of funds. I explain that if the offer is accepted I will provide for you an earnest money.

Correct, earnest money is not needed until offer is accepted, and generally 48-72 hours after acceptance.

Keep us in the loop and good luck!

- Tom

But what happens, worst case scenario if you cannot find a buyer. Does that bind you to pay the Earnest money, or can you put a contigency clause in there to protect you.

Thanks!
Holly

Today, the agent said if i can please give in a POF letter, because he has never seen or heard anyone made offers on eleven properties at the same time. I told him, well this can be an experiance to get in to. When I came by to drop off the POF letter, he starter to sound skeptical and nervous, saying that he does not think my offers will go through and that it will just go out the window. I came to him two days ago and I played down my offers, and this agent wrote everything down with no hesitation. We talked some more yesterday and I told him that he needs to be in the same page as me so we can have a relationship, but he said he is nervous about this and sounds like made strategy. I'm sorry, but that's when I got ****SED OFF. I told him thank you for your time and and he cut me off and said I don't think with someone as young as you making ten-twenty-thrighty or whatever offers at the same time won't work in any market with an agent. He said "I am sorry but I have never seen this method before" and I left the office.
What ****ed me off is that he didn't even take the time to try it and sent out the offers. But he was beating around the bush and gave me the run around, instead of saying it out right.
I told this agent two weeks ago that we will be making low offers on the properties in my criteria, and we will be offending alot of agents, but all he said was yes, yes, yes.
Thank you so much for reading my activities but I feel it will keep me accountable.

PUT THE CONTINGENCY CLAUSE AS FOLLOWS: DEPOSIT DUE WITHIN 48 AFTER ACCEPTANCE,AND YOUR APPROVAL OF A 14 DAY INSPECTION PERIOD. THERES YOUR OUTLET!!!

HOPE THAT HELPS ??

Just move on to the next one I guess. It seems that only a very small amount of agents will actually "get" what you are trying to do. When you find the right one you will know.

Tell the agent that you are a CASH buyer. Do not tell them anything about assigning the deal. It is none of their business.

When they make up the sales contract tell them to put your name (or your company name) and/or assigns because you don't know if you will be putting the property into your name, your partner's name or an LLC. PERIOD. DONE.

I tell them that when I have a signed contract that I will provide POF and within three days of the contract being signed I will provide EMD. I tell them that my goal is to purchase 4-5 properties/month and to do that I have to make a LOT of offers and I will not put my financial information out to all those people. I will be more than happy to provide everything once we have contracts signed. They have NEVER mentioned it again.

When you tell them this, say it like "I go through this always and this is the way I roll!" I swear to you, it works!

Good luck and get another realtor.

Karen

Great job on taking action!, I know it takes time and effort to find the right person but you'll find him/her.

Hey Louie,
Thanks for that information, I have been getting hit with the same problem. Now I know what to put in the contract. I do put it in the contract as a contingiency right???
John Hervan
Lemon Grove, CA.

With your next agent (i'm assuming you've moved on from this last one); if they ask you how you're going to handle all your offers if they get accepted, tell him that you have several partners who will be happy to take the properties if you dont want to keep them, which means that agent will get commission on all properties that your offers get accepted because you will have the buyers ready!

Wishing you success,

In CA you do not have to put the inspection period as a contingency. It is the law already and is on the CAR.

Karen

Thanx for all the info. Having same issues in CT and didn't know how to handle. I was giving them the pof when they asked for it. No More. Huge. I will wait for now on.

The agent did'nt want to know if all the offers get accepted or not. The agent told me that he does not think this will work. He to focus on what property is you want to offer on. I said all of them, and I put my offers in, but he then started to look at me and say I look young and that I need to think of another way to make offers cause he does not think it will work. I said thank you and moved on.
Thank you for all your help everyone.

"THAT'S HOW I ROLL"

Yeah, you can tell I post a lot VERY late at night. I get a little slap happy!

Karen

Good for you for moving on. You have to have a realtor who has faith in the process. If they don't, then when they are questioned by the seller's agents (and they will be) they won't be believable.

BTW, if you are retired military, you cannot be a teenager! That is actually very insulting for that agent to make reference to your age in that way. Hang in there! You will find "The One"!

Karen

It feels great to have you email pop up and alerting you that someone from dg post something. Thanks for spending time here.

It is very helpful for you to start this topic. This was one of the biggest questions I have in mind too. All the comments are very helpful. Please keep us posted how it goes.

Goodluck to you and to all of us here!

Shirley

I just placed an offer here in NJ and the real estate agent I'm dealing with said we have to give them the earnest money when we submit the offer. She said that is the law in NJ. Does anyone know if that is correct??
Amy

Carol Stinson is the expert on any NJ laws regarding that. Send her a PM if she doesn't see this soon.

Karen

Somewhere on the DG thread I have read that you can submit a COPY of the earnest money check in addition to the above send addendum of the 72 hour clause/inspection option out and POFL...

Or you can set up an escrow account (at a bank or with an attorney) w/the thousand dollars in it specifically for offering purposes. Typically, earnest money is 2-5% of the PP (purchase price), not less than $1K. The standard being the $1K.
If the offer is dirt cheap, $500 should do to get your offer acceptable to the seller.
Plus, like mentioned above back yourself up by presenting yourself as a cash buyer who has investor/business partners or associates.

Move on to find an agent that will be on your side.
After all, they work FOR you.
Screen 10-25 to get one that fits your plan of action.
Look for investor-friendly agents at a local REI club.
The concept is very new and seems unusual to some agents.
(Review Matt's agent dialogue).
They are so used to making ONE offer for ONE buyer as opposed to MULTIPLE offers on MANY properties.
Some may think you're wasting their time because you haven't actually purchased any properties yet...and therefore, they haven't made any money.
There are so many agents out of work presently, you're bound to find a hungry one.
Don't give up! Press on.

I've tried reaching out to her several times via DG, Facebook and leaving a message on her office line to no avail.....