Don't have Earnest Money?

I love that suggestion. Another option for you on Earnest Money for those who may not be able to get a signature loan, is a title loan. Many companies are now giving loans using a car title as collateral. By leveraging your asset you can acquire the necessary funds to get the deal done, and then you can immediately pay it back. Another option would be a paycheck advance loan. Those won’t normally be large amounts, but hopefully you aren’t putting a lot of earnest money down to begin with. All these are options to get the funds needed to get the deal closed. And remember if you’re wholesaling, you should be getting non-refundable earnest money from the end buyer when you do the assignment of contract

Another method of finding cash to put down as an earnest money deposit is to use a home equity line of credit from another property. If you have equity in another property, you could use that equity as a down payment. Once the transaction is finished, you use the profits to pay off the HELOC, but the line of credit is still open to use on future deals.

Congratulations on winning the deal dccapital. That was really a good move and what you've experienced is a great example of how hard money loans should really be used in funding real estate deals

you can take cash off it and replace it

Mike,

That is exactly what I did on my first deal. Took out a cash advance on my credit card, then repaid the card as soon as I got the earnest from my buyer.

No w I almost always have the deal sold within 24 hours of signing the contract with the seller so I use my buyers earnest to cover my earnest. ZERO money out of pocket.

So there are ways to get around "I have no earnest money" situations. You just have to think outside the box! Build that buyers list!

Michael Mangham
Mentoring/Team Building Nationwide
MD Home Acquisitions LLC

If only I had a credit card or bank out...I have a levy on mine...and not enough credit for a credit card....im young, so...yea....lol...

VonnyV23- You should check out Philip Tyrone's credit building program (Dean approves of it and even recommends it!) at www.720creditscore.com
He teaches how to rebuild your credit fast. I'm doing it and am very happy with it! Philip has a list of credit cards that anybody can get approved for, no matter what their "credit destruction" story is. He says that building credit from little to no credit history is the fastest and easiest way to do it.

or do you have to be in the program to get the list?

Go to www.720creditscore.com, and there is a green link for "credit cards" on the left hand side. He's got cards for good/fair credit, and cards for bad credit. Check out his site, there is TONS of other invaluable information on there. His program is really good too, and I was surprised at the cost of it (lower than I expected), but the website is free to look at. The way the credit scoring system works can be logically backwards (especially with paying off collections!!!), so it would be worth, at the very least, spending some time on his site to get an idea of what's really going on with your credit score.

It seems like people with bad credit feel guilty and ashamed about it, and it's understandable. However, whatever happened in the past, happened in the past, and you can't change it. So instead of feeling bad about it, learn from it. Don't hide from your credit, embrace it. If you know that you probably have a bad score, don't be afraid to pull your credit to find out exactly HOW "bad" it really is. When I finally pulled mine, I was surprised at how bad it wasn't! Granted, it is still pretty low, but after my credit card/collection meltdown, I thought it would be a lot worse. Now that I know where I'm at, I'm ready to rebuild and focus on my FUTURE instead of my PAST.

Our eyes are placed on the front of our head so that we are forced to look FORWARDS, not BACKWARDS. Don't fight your human anatomy, ha!

And I'm not getting paid or anything to promote his site/program. I really respect the fact that Philip Tirone is on a mission to help people rebuild their credit as fast as possible. Plus, it feels good to use the "credit tricks" for your benefit, especially after they were used to hurt your score in the past!

EX:
Each card gives you $5000 credit

1. gives you 18.99 interest BUT 90 days interest free

2. gives you 10.99 interest BUT every 28 days

Which would YOU pick??