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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