|
|
Post by worldmoney2012 on Jul 8, 2012 12:27:41 GMT -8
Hi Tony and everyone listening!
I'm looking for earnest money partners and as I google I find some that are offering up to available $2000, wired to title company and as a fee requiring $100 upfront and 20% of investor's flip profit. Question: Is this a bit expensive or just the cost of a new investor getting starting prior to having his/hers own cash reserves for deposits?
Thank you, Michael
|
|
|
|
Post by mellucido on Jul 10, 2012 5:47:09 GMT -8
Hi Michael,
Just thought I'd chime in here. Funny, I have been concerned wit how to get earnest money myself. I may have to hole off making offers until I get some money saved up.
Maybe I'll just bird dog and slowly---or quickly ;D build reserves toward that goal. The option you mention here sounds very expensive. It will be interesting to hear what Tony has to say on this.
Success to you!
Melodee
|
|
|
|
Post by Tony Alvarez on Jul 17, 2012 19:52:10 GMT -8
When it comes to borrowing money, some investors/speculators think that there exists some specific rule or rule of thumb. None exist! A lender is always going to TRY to get as much as he can from the borrower while the borrower is always going to want to pay as little as possible. Therefore, this is always a point of negotiation.
Try not to rely on what "others" say is an acceptable fee or charge. It is better to decide what it is you can live with or deem acceptable according to the profit in the deal as well of your level of need for the funds.
Remember that everything is a compromise. As you develop your ability to do this business as well as create and develop relationships with other real estate professionals (through DAILY practice), these decisions become second nature. The bottom line is regardless of what they offer you or what others think is acceptable -- decide what YOU are willing to pay. The key word is negotiate!
We hope we have been of good service.
Thank you for your question.
|
|
