Many of the people that go into real estate wholesaling do so because they lack the capital or credit necessary to buy and sell homes with their own money. The problem that many real estate wholesaler’s face is getting around the required earnest money.
Earnest money is the money required by the sellers if they decide to accept your offer. Sellers view earnest money as an indicator that you are serious about buying their home. Many sellers will think that if you are planning on giving them earnest money, then you must not be serious about purchasing their home.
The key to getting around the earnest money situation, as well as eliminating much of the risk in the transaction is to put a special inspection clause into the contract. An inspection clause is a clause in the real estate contract that says you have a certain amount of days to inspect the property. If the inspections are not to your satisfaction then you may cancel the contract. Along with the inspection clause you ad that the earnest money will be due upon the release of the inspection clause at the end of the inspection period.
By making the earnest money due at the end of the inspection clause, you will be able to get your buyers through during the inspection period. If your buyers do like the home then get a non-refundable earnest money deposit from them which you will end up giving to the seller. If your buyers do not like the home then simply cancel the contract.
Eric Medemar is a real estate consultant/investor/realtor with over 35 properties. Eric is considered by many to be on of the countries leading experts in real estate wholesaling. His real estate wholesaling courses include: http://www.InvestorsLunch.com This low cost Introduction to real estate wholesaling has been called The Best Course For Under $30, that I have ever seen by newbie investors from accross the U.S. Eric’s second course is http://www.TheForeclosureCollege.com this one of a kind real estate course allows you to talk with Eric one-one, use his branded toll free number, plus his profit generating website. You can view Eric’s Blog at http://www.TheMillionairesBlog.com
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