Someone interested in doing a JV? I have two good investors who are willing to close two deals by the end of this month or as soon as possible. They are looking for seller financing properties in Mooresville, Concord, Huntersville, Matthews, Harrisburg, and Charlotte. If you have a property and are willing to do a JV, please send me a message to my email: [email protected]. Thank you!

Hey fellow wholesalers! 👋 There’s a lot of debate about Earnest Money Deposits (EMD) and how low you can go without killing a deal. I put together this guide to clarify the reality of using super-low EMDs (including $0 and $1) in wholesaling, covering strategies, contingencies, and how to protect yourself. Hope this helps the community! --- Part 1: Is a $1 EMD Possible? 🏡☀️! Yes, a $1 earnest money deposit (EMD) is absolutely possible in real estate wholesaling and is a relatively common practice, particularly in off-market transactions with motivated sellers. The key is that the amount is negotiable and not typically set by law. Here are the key points to understand: ☺ Legal Validity: An EMD demonstrates "good faith" and creates a binding contract when combined with other considerations (like the promise to purchase and the seller's promise to sell). The actual amount can be very low, even just $1, because the mutual promises in the contract constitute adequate legal consideration, a fundamental principle of contract law found on websites like the Cornell Law School Legal Information Institute: (www.law.cornell.edu). ☺ Seller Perception: While legally possible, a $1 EMD might be perceived by some sellers (especially those dealing with realtors or in hot markets) as a lack of seriousness. Motivated sellers who need to dispose of a property quickly may be more flexible and accept this token amount. ☺ Negotiation Strategy: Wholesalers often use a low EMD as a negotiation tool. They might emphasize that they are paying cash and covering closing costs, making the EMD a small token for the title company to open escrow. ☺ Contractual Protection: A low EMD is often paired with a short inspection or due diligence window in the purchase agreement. This allows the wholesaler time to find an end buyer and, if the deal falls through due to an agreed-upon contingency, they can still back out and recoup their small deposit. ☺ Handling the Funds: The EMD should be held by a neutral third party, such as a reputable title company or closing attorney—never given directly to the seller.