OfflineI am still new to this REI and I'm learning a TON! I am networking DAILY, and constantly building my buyers/sellers lists while looking for deals - posting adds, ect.
I have a fellow wholesale REI that has been sending me properties that he is getting locked up, and he's asking for non-refundable deposits for the Investor who is interested.
Can someone who is experienced in Wholesales tell me if you also do this? And the benefit of doing that, or is this necessary?
I can see where this helps to ensure that the investor has a Serious Interest in the property. I am assuming that this deposit is given only after the offer has been accepted.....
Thanks in advance,
Renae
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The Browley Team
Working Towards Success!!
I always do this when I sell a property to a fellow investor. When you put down a non refundable earnest money check you are committed to the deal! I do not let an investor with no money and no buyers put my properties under contract while they search for a buyer. I don't mind someone bring their own buyer, they just have to have the money in advance!
Michael Mangham
MD Home Acquisitions LLC
Knowledge is power, but execution trumps knowledge. Tony Robbins
http://www.mdhomeacquisitions.com Seller site
http://www.mdhomeacquisitionsbargainhouses.com Buyer site
http://www.mdhomeacquisitionshousehunter.com Bird Dog Site
http://www.mdlodeals.com Tenant/Buyer site
if you don't have a pre-approved loan yourself or the cash, or if you don't have a buyer who either has the cash or pre-approved by a lender (get proof); I would not put a non-refundable deposit down...
Maybe you can ask the investor if he would pay you a fee to find him a buyer who would put the deposit...
Wishing you success,
Valerie
Valerie
“And will you succeed? Yes indeed, yes indeed! Ninety-eight and three-quarters percent guaranteed!” ― Dr. Seuss
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Thanks Micheal and Valerie! That makes a lot of sense. I suppose without this "commitment" from Investors, we could all be blowing smoke up each others backs.
And yes, Valerie - this Investor is willing to pay a finders fee for bring a buyer to the table if I'm not the one buying. So that is cool. And I suppose in that instance, it would most likely be a one time thing as I'm sure they would add my buyer to their buyers list for their next wholesale deal. So I'd want to make sure I get a nice reward for bringing them an "active" buyer!
Renae
The Browley Team
Working Towards Success!!