296 - What Is Earnest Money? How To Use It To Make A Deal

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Manage episode 299812735 series 1827097
By Tyler Sheff. Discovered by Player FM and our community — copyright is owned by the publisher, not Player FM, and audio is streamed directly from their servers. Hit the Subscribe button to track updates in Player FM, or paste the feed URL into other podcast apps.

Earnest money is defined by Google as “money paid to confirm a contract” and in my opinion, is one of the most important elements of putting a deal together.

In Florida (and I believe in all US States) for a contract to be considered enforceable, there must be “consideration” which is most often meant to be some sort of cash deposit or earnest money

Wholesalers are notorious for not using earnest money when they attempt to go under contract with a seller on their home, this is a great way to lose deals!

Many folks will tell you that it’s not necessary to use earnest money which will come back to bite you the minute a seller decides not to sell to you or honor your contract.

In this episode, I cover how to use earnest money to win a seller’s approval on your offer over others which is critical in this very competitive market

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