34  Security Deposits

When rental property is sold, security deposits are credited from the seller's proceeds to the buyer at closing.  Informed buyers can structure a no-money-down transaction by allowing the seller to walk away with their entire expected profit in exchange for a down payment credit.  Have the seller write you a check for the security deposits, then endorse the check back to the seller.  Make it legal by opening an escrow account for the security deposits after closing.

35  Seller Deposit Credit

Sometimes buyers ask sellers to place earnest money in escrow to back up a warranty or when the seller must perform tasks that if not completed could cause the buyer damages.  Ask the seller to make an earnest money deposit.  Then, instead of both buyer and seller making deposits, call it a wash.  Each writes a check to the other and endorses it back, or the parties can simply put up $1.00 each for consideration.

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Charles Parrish