What you need to know about EARNEST MONEY

Today’s real estate investing word is earnest money.

Earnest money is how much money you put down as ‘good faith’ tolet buyers know that you’re actually going to complete the process of buying a house.

Earnest money is actually the thing that makes the contract valid. Technically, money must to be exchanged in order for a contract to be valid.

The tip for the day…there is no set price for earnest money!

We have a friend in our community of real estate investors that was the queen of the ten dollar down deals.  That’s right!  You can put as little or as much as you want down as earnest money.

If you are working with a real estate agent, they may have a suggested fee and some agents will not accept deals without a set amount of earnest money.  Ultimately, it is up to the seller to determine if they like the amount and will accept is.

Make sure you go to DFWTOP.com/words if you want to download 22 Real Estate Investing Terms you need to know. It’ll help you as a new real estate investor sound like a pro.