discharge of agreement form for? If I need one where can I find it? I think I just finally through this form away yesterday as I must have downloaded it early when I started and just couldn't figure out what I needed it for/// Scratching head over here.
"In order for me to think outside the box, that would require me to acknowledge that the box actually exists. In my world, there is no box."
~Matt Larson~
Putting $10 dollars earnest money on the contract and if it is questioned or we get a seller that wants to work with us and questions the amount then we can raise that amount. We just don't want to tie up alot of money if we put out multiple offers and need cash flow.
Here are thoughts to ponder concerning earnest money.
1.If you got an offer from 2 buyers and they both offered $100,000 as the purchase price. However one buyer put down $1.00 as earnest and the other buyer put down $1000. Which offer would you accept and why?
2. I have had CASH buyers that put up 100% of the purchase price as earnest money? Why did they do this?
3. When dealing with REOs or short sales you can make $0 earnest or $10 earnest offers all day long. They will NOT be accepted. The lender will determine the earnest amount on these offers. The only time these low earnest offers have worked for me was when I was working directly with a motivated seller using my contracts and there were no other offers on the property.
4. A STRONG offer has a reasonable earnest money amount. Most people are not dumb. If you say you are a cash buyer and you can only put up $1.00 what would you think?
Michael Mangham
Mentoring/Team Building Nationwide
MD Home Acquisitions LLC
__________________
Knowledge is power, but execution trumps knowledge. Tony Robbins
It is just a good faith to show intent to purchase. I tell the seller this is an all cash purchase, if you dont want cash then I guess I dont need to buy your house.
"In order for me to think outside the box, that would require me to acknowledge that the box actually exists. In my world, there is no box."
~Matt Larson~
thanks for all the input. I was asking about the discharge and disclosure forms because i was thinking about using a fee structure instead of assignment. in PA they make us pay transfer tax twice on assignments and the tax is based on the value not the purchase price so you could end up buying a house for 25k that they value at 50k and double tax means your paying costs on a value of 100k and i dont wana do that. especially on deals were the value is close to what the investor wants to pay. i just need a little guidance on how to handle this. can i rip up my original contract. sign a fee agreement with the end buyer and have the two parties write up a new contract? then it wont be an assignment it would be bird dog fee situation? I just keep milling the same questions I wish I knew someone I could email questions and scenarios to.
"In order for me to think outside the box, that would require me to acknowledge that the box actually exists. In my world, there is no box."
~Matt Larson~
It looks like you split the 1% tax with the party you're involved with. So you split it initially with the seller and then again on the purchase price + assignment fee with your buyer. (that's how I read it)
The link shows an example scenario of a similar situation that you would be involved in
If this is the case, just make it part of figuring your offer price and adjust it accordingly.
__________________
Mark K.
Life Disclaimer: Past Failures are NOT indicative of Future Results.
"In order for me to think outside the box, that would require me to acknowledge that the box actually exists. In my world, there is no box."
~Matt Larson~
New Agent Wants 10% Deposit Check BEFORE Making Offers
I requested my new agent make 15 offers for me. He says, in addition to POF, he also needs for me to send him a blank check for 10% of the offers (10K-15K). Well, I obviously don't have that amount in my account. I told him I am a cash investor who buys, fixes & flips. I had him send me 30 properties of which I narrowed down to 15 that I would like to put offers on. Do I really need to give him a copy of a check for the 10% in order for him to open escrow? Please advise as to my next step. Any adice is very much appreciated!
Rhonda Andrew
__________________
I am willing to work the way most people WON'T, so that in a few short years, my family and I can live the way most people CAN'T!
Earnest money deposit is a MUST to make a contract legal, no matter how small of an amount. You need consideration & a meeting of the minds; $$$$ and an offer and acceptance.
As for REOs & Short Sales, you never put down any money until the offer is accepted. You must supply proof of funds when submitting the contract. When accepted, then the bank will require an EMD, usually $ 500 to $ 5000.
As for private sales with REA, I have never been asked for POF, but on some
occasions I have given EMDs to show the seller we are very serious cash buyers.
Rhonda, find a new REA, he or she is nuts.
1. Is it okay to put $0 earnest money? - No, never.
A RE sales agreement requires an offer (in writing), an agreement (the other person's signature) and consideration (earnest money). It must be $1 cash or something worth at least that much MINIMUM. There is no maximum limit. Noobs will always want to put $0 up front - and you'll have decent luck for FSBO's. But if ANY salespeople are involved anywhere near the transaction, you can be sure of disasterous results. They will want a bag of cash their seller can spend without selling anything, which is equally ridiculous. Clearly the truth (and the practice) will be some amount between $1 and 99% of purchase price.
You don't NEED a huge earnest deposit, because the real deals do not need it, and a truly motivated seller won't ask for it. Just like if your offer price is accepted right away, you offered too much... If you just cough up whatever amount the agent demands, you've already given up way too much. If you're buying, don't even bring earnest money up. Let them know you're a serious investor, you're paying cash, you can close fast, and if a deal is hung up over earnest money, you'll buy a different deal. Only salespeople on commission selling retail places, at retail prices, are going to hardball you about earnest money. You don't want a retail deal, you want a REAL one, right? Right!
2. Should I use the investor disclosure agreement for FSBO's even if they're not IEE deals? - Yes, always.
The type of REI deal does not dictate you disclose this. Your occupation as a REI makes it smart and responsible to disclose this upfront. You're letting the seller know (as well as any attorney they hire later, and any judge that reads it) that you're not masquerading as a retail or home-buyer. You plan on buying low, fixing up (or at least cleaning) and selling (or holding) for a profit. This disclosure covers your butt, and when you're in a civil suit over the sale of property, you need all the coverage you can get.
P.S. Rhonda: You can't possibly expect your agent to open escrow for you for free, but demanding a check for 10% (AND POF??) before he lifts a finger, is ridiculous. Feel free to replace them with someone who knows what they're talking about.
__________________
Paul: "I must not fear. Fear is the mind-killer. Fear is the little-death that brings total obliteration. I will face my fear. I will permit it to pass over me and through me. And when my fear is gone I will turn and face fear's path, and only I will remain."
Duke Leto: "I'll miss the sea, but a person needs new experiences. They jar something deep inside, allowing him to grow. Without change something sleeps inside us, and seldom awakens. The sleeper must awaken." - "Dune."
Offline
http://www.deangraziosi.com/real-estate-forums/contracts-and-offers/8885...
Mike
https://tvallc.isrefer.com/go/RehabLite/renvestr/ Free tools
discharge of agreement form for? If I need one where can I find it? I think I just finally through this form away yesterday as I must have downloaded it early when I started and just couldn't figure out what I needed it for/// Scratching head over here.
www.tw4homes.com website
https://tvallc.isrefer.com/go/RehabLite/reigirl/ FREE SOFTWARE FOR WHOLESALERS, REHABBERS AND AGENTS! Present professional looking deals to buyers and lenders as well as run your numbers and get the ROI.
put down any earnest money unless the seller asks for it.
Even then I only put down $1 or $10 max.
Click Here To Buy Deans New Book!!! http://www.lanemccaw.bookimentioned.com/b/
Visit my website:http://qchomebuyers.weebly.com/
Visit My Facebook Page: http://www.facebook.com/#!/qchomebuyer
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"In order for me to think outside the box, that would require me to acknowledge that the box actually exists. In my world, there is no box."
~Matt Larson~
1.it is ok to give $0 earnest money?
No. I've seen / read that a minimum of $1 must be exchanged for it to be legal.
2.Should I use investor disclosure and discharge of agreement on every FSBO deal even if its not an IEE
The more thorough the question, the more thorough the answer.
Please fill out your profile with as much info as you're comfortable with.
Thanks.
Putting $10 dollars earnest money on the contract and if it is questioned or we get a seller that wants to work with us and questions the amount then we can raise that amount. We just don't want to tie up alot of money if we put out multiple offers and need cash flow.
www.tw4homes.com website
https://tvallc.isrefer.com/go/RehabLite/reigirl/ FREE SOFTWARE FOR WHOLESALERS, REHABBERS AND AGENTS! Present professional looking deals to buyers and lenders as well as run your numbers and get the ROI.
You dont have to put earnest money down. But if you start getting into listed properties with Realtors, or with banks, be ready to put some down.
Curtis Fillers
(Charlotte,NC)
Some states require at least $1 to make the contract legally binding as Chris mentioned.
Mark K.
Life Disclaimer: Past Failures are NOT indicative of Future Results.
Real Estate Glossary - Click Here for PDF
View My Everyday Blog - Click Here
lol your funny lane 10 dollars ha. ya true if they dont ask for any then why should you right?
yesterday is history, tomorrow is a mystery, but today is a gift. That is why it is called the "present."
"Be not afraid of growing slowly; be afraid only of standing still"
1.If you got an offer from 2 buyers and they both offered $100,000 as the purchase price. However one buyer put down $1.00 as earnest and the other buyer put down $1000. Which offer would you accept and why?
2. I have had CASH buyers that put up 100% of the purchase price as earnest money? Why did they do this?
3. When dealing with REOs or short sales you can make $0 earnest or $10 earnest offers all day long. They will NOT be accepted. The lender will determine the earnest amount on these offers. The only time these low earnest offers have worked for me was when I was working directly with a motivated seller using my contracts and there were no other offers on the property.
4. A STRONG offer has a reasonable earnest money amount. Most people are not dumb. If you say you are a cash buyer and you can only put up $1.00 what would you think?
Michael Mangham
Mentoring/Team Building Nationwide
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
It is just a good faith to show intent to purchase. I tell the seller this is an all cash purchase, if you dont want cash then I guess I dont need to buy your house.
Click Here To Buy Deans New Book!!! http://www.lanemccaw.bookimentioned.com/b/
Visit my website:http://qchomebuyers.weebly.com/
Visit My Facebook Page: http://www.facebook.com/#!/qchomebuyer
Visit My Linkedin Page: http://www.linkedin.com/pub/the-1-fast-ca-h-home-buyer-in-the-qc/28/b79/...
"In order for me to think outside the box, that would require me to acknowledge that the box actually exists. In my world, there is no box."
~Matt Larson~
thanks for all the input. I was asking about the discharge and disclosure forms because i was thinking about using a fee structure instead of assignment. in PA they make us pay transfer tax twice on assignments and the tax is based on the value not the purchase price so you could end up buying a house for 25k that they value at 50k and double tax means your paying costs on a value of 100k and i dont wana do that. especially on deals were the value is close to what the investor wants to pay. i just need a little guidance on how to handle this. can i rip up my original contract. sign a fee agreement with the end buyer and have the two parties write up a new contract? then it wont be an assignment it would be bird dog fee situation? I just keep milling the same questions I wish I knew someone I could email questions and scenarios to.
outside of closing.
Click Here To Buy Deans New Book!!! http://www.lanemccaw.bookimentioned.com/b/
Visit my website:http://qchomebuyers.weebly.com/
Visit My Facebook Page: http://www.facebook.com/#!/qchomebuyer
Visit My Linkedin Page: http://www.linkedin.com/pub/the-1-fast-ca-h-home-buyer-in-the-qc/28/b79/...
"In order for me to think outside the box, that would require me to acknowledge that the box actually exists. In my world, there is no box."
~Matt Larson~
After reading this:
http://pa-titlecompany.com/pennsylvania-transfer-tax-on-assignment-trans...
It looks like you split the 1% tax with the party you're involved with. So you split it initially with the seller and then again on the purchase price + assignment fee with your buyer. (that's how I read it)
The link shows an example scenario of a similar situation that you would be involved in
If this is the case, just make it part of figuring your offer price and adjust it accordingly.
Mark K.
Life Disclaimer: Past Failures are NOT indicative of Future Results.
Real Estate Glossary - Click Here for PDF
View My Everyday Blog - Click Here
I get away
With $0 earnest money because I only work with unlisted highly motivated sellers.
I've never been asked for money up front.p
Click Here To Buy Deans New Book!!! http://www.lanemccaw.bookimentioned.com/b/
Visit my website:http://qchomebuyers.weebly.com/
Visit My Facebook Page: http://www.facebook.com/#!/qchomebuyer
Visit My Linkedin Page: http://www.linkedin.com/pub/the-1-fast-ca-h-home-buyer-in-the-qc/28/b79/...
"In order for me to think outside the box, that would require me to acknowledge that the box actually exists. In my world, there is no box."
~Matt Larson~
I requested my new agent make 15 offers for me. He says, in addition to POF, he also needs for me to send him a blank check for 10% of the offers (10K-15K). Well, I obviously don't have that amount in my account. I told him I am a cash investor who buys, fixes & flips. I had him send me 30 properties of which I narrowed down to 15 that I would like to put offers on. Do I really need to give him a copy of a check for the 10% in order for him to open escrow? Please advise as to my next step. Any adice is very much appreciated!
Rhonda Andrew
I am willing to work the way most people WON'T, so that in a few short years, my family and I can live the way most people CAN'T!
Earnest money deposit is a MUST to make a contract legal, no matter how small of an amount. You need consideration & a meeting of the minds; $$$$ and an offer and acceptance.
As for REOs & Short Sales, you never put down any money until the offer is accepted. You must supply proof of funds when submitting the contract. When accepted, then the bank will require an EMD, usually $ 500 to $ 5000.
As for private sales with REA, I have never been asked for POF, but on some
occasions I have given EMDs to show the seller we are very serious cash buyers.
Rhonda, find a new REA, he or she is nuts.
1. Is it okay to put $0 earnest money? - No, never.
A RE sales agreement requires an offer (in writing), an agreement (the other person's signature) and consideration (earnest money). It must be $1 cash or something worth at least that much MINIMUM. There is no maximum limit. Noobs will always want to put $0 up front - and you'll have decent luck for FSBO's. But if ANY salespeople are involved anywhere near the transaction, you can be sure of disasterous results. They will want a bag of cash their seller can spend without selling anything, which is equally ridiculous. Clearly the truth (and the practice) will be some amount between $1 and 99% of purchase price.
You don't NEED a huge earnest deposit, because the real deals do not need it, and a truly motivated seller won't ask for it. Just like if your offer price is accepted right away, you offered too much... If you just cough up whatever amount the agent demands, you've already given up way too much. If you're buying, don't even bring earnest money up. Let them know you're a serious investor, you're paying cash, you can close fast, and if a deal is hung up over earnest money, you'll buy a different deal. Only salespeople on commission selling retail places, at retail prices, are going to hardball you about earnest money. You don't want a retail deal, you want a REAL one, right? Right!
2. Should I use the investor disclosure agreement for FSBO's even if they're not IEE deals? - Yes, always.
The type of REI deal does not dictate you disclose this. Your occupation as a REI makes it smart and responsible to disclose this upfront. You're letting the seller know (as well as any attorney they hire later, and any judge that reads it) that you're not masquerading as a retail or home-buyer. You plan on buying low, fixing up (or at least cleaning) and selling (or holding) for a profit. This disclosure covers your butt, and when you're in a civil suit over the sale of property, you need all the coverage you can get.
P.S. Rhonda: You can't possibly expect your agent to open escrow for you for free, but demanding a check for 10% (AND POF??) before he lifts a finger, is ridiculous. Feel free to replace them with someone who knows what they're talking about.
Paul: "I must not fear. Fear is the mind-killer. Fear is the little-death that brings total obliteration. I will face my fear. I will permit it to pass over me and through me. And when my fear is gone I will turn and face fear's path, and only I will remain."
Duke Leto: "I'll miss the sea, but a person needs new experiences. They jar something deep inside, allowing him to grow. Without change something sleeps inside us, and seldom awakens. The sleeper must awaken." - "Dune."