View all Local Real Estate forums. Innovative Strategies 5 Replies. I am fairly new to the world of commercial real estate. We are looking to close on a multi-family complex in a college town. We have the financing, proof of funds, and management in place Are there any creative strategies or ways that any savvy commercial investors have used out there to avoid putting down earnest money in commercial real estate transactions?

Any suggestions would be welcomed. In the state of Indiana, earnest money must be held by the listing agent, as they are responsible. Out west, earnest money is usually held by the title company. If there is no listing agent involved, then take Tim's advice and make sure it is with your agent, title company, or attorney closing escrow has it. It is very difficult to get around earnest money, as it tells the Seller you are serious.

The larger the earnest money, the more serious a Seller will look at your offer. If you want the deal, and it makes sense, there is no real reason to skirt the earnest money. If you do not have enough cash to cover it, then you probably should not be buying it anyway.

Julian, We did not close the deal unfortunately. The seller was not satisfied with the 1. This was my first commercial RE negotiation and I am thankful that we did not lose more money on the order of an appraisal and inspection for a property with such an "unmotivated" seller. Already have an account? If you signed up for BiggerPockets via Facebook, you can log in with just one click! Log in with Facebook.

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Log In Email Address: Share on Facebook Share on Twitter Share on LinkedIn 1 of 1 pages. Ivan Jenkins Real Estate Investor from Clemson, South Carolina posted over 8 years ago.

Vendor from Tampa, FL replied over 8 years ago. Have the check for the earnest money be held by the buyer's agent or attorney. Harrison Painter from Indianapolis, Indiana replied over 8 years ago. This will be another one of those state by state issues. So in my opinion, earnest money is required! Originally posted by Harrison Painter: In the state of Indiana, earnest money must be held by the listing agent, as they are responsible It can be a promissory note, post dated check or something else of value as determined by the contract.

I did a perfectly legal transaction in Indiana where my "earnest" was a letter of intent. In fact, in a surprising number of states, earnest money is not required by law at all. If you sign the contract requiring earnest however, it is required by the contract. As many contracts used by investors and banks are written by Realtor associations and Realtors know that people are much more likely to close a deal they've put earnest down on - the majority of people have assumed for years that earnest money is simply required by law simply because they have only seen or heard of contracts requiring it.

When you're dealing with earnest money amounts on a large scale, it certainly pays to familiarize yourself with your options. Julian Hart Real Estate Investor from Memphis, Tennessee replied almost 8 years ago.

Ivan Jenkins Real Estate Investor from Clemson, South Carolina replied almost 8 years ago. Property remains on the market. Trending Discussions Failure to launch, no luck so far Replies. Log in Sign up. Log in Email Password Forgot password? Get Started on BiggerPockets Already have an account? Log in Close Create an account to reply Already have an account? Log in Your Full Name: Use your real name Your Zip Code: Log in to reply Create a new account instead Email Address: Your account has been created Before you can post on the forums, you must confirm your email address.

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