Zoom Call with Jack Carter: Ways to Pay for Real Estate from ApplePay to Zelle
The Zoom call this week with Jack Carter was offered as a way to present different options currently being used to make purchases and the possibility that the new options may be applied to real estate purchases.
Mr. Carter was presented to the attendees by Margaret Rome, who met him during a transaction. She was so impressed with the manner in which the transaction flowed that he invited him to make a presentation for ActiveRain, and also encourages him to join, which he has done.
Real estate agents and those that work in the industry understand that first and foremost the funds need to be verified and all feel comfortable that the complete value of the purchase will be there for the closing. This was confirmed with each manner that was discussed.
- Cash: Rather self-explanatory as cash is king, but in our world the source of the funds need to be verified and as obligated within or Fiduciary duties, must have been earned legally. Also, bringing a suitcase of cash to a closing may not be very practical and the remnants of bedding interspersed can be distracting.
- Personal Checks: Not typically acceptable as the checks can be stopped by the owner of the account.
- Certified or Cashier's checks: Certified checks are merely a personal check that has been attested by a legal entity but like the personal check can be cancelled. A cashier's check is drawn against funds in an account and are more readily accepted.
- Wire Transfers: The most secure of all possibilities, that are non-reversible and are most common. An individual attempting to use a wire transfer may find the cost slightly high but it still is widely used between institutions at closings.
- Money Orders: Purchased at banks or post offices, they can be expensive if many are required, or dollar amount is higher, but they are acceptable
- Credit Cards: Credit Cards are not acceptable as any charge can be disputed and funds reversed until resolved.
- ApplePay and Google Pay: These apps may work for some purchases, as they are credit card based. As noted above, credit cards are not acceptable. However, for some smaller costs, they may be acceptable but that is determined by the individual provider.
- Foreign Currency: The Lira, Yen, Euro, Peso, etc are all acceptable manners of payment in their own countries, however they are not practical for real estate purchases, but not exclusively. The issue is rates of exchange, and it is possible that with the proper bank, the funds can be transferred and assuming the trail of funds can be established as legal permissible.
- Crypto Currency: The rules regarding crypto currency, such a bit coin, etc are like foreign currency, however, it was offered by Ryan Huggins among others on the call that they have been used in transactions with some success. It was noted by one of the call attendees that some municipalities are accepting crypto currency for tax payments.
- Venmo, CashApp: These are money sharing apps and while acceptable for small transactions would be unacceptable for larger commercial purchases such as real estate.
- Zelle: This is another payment sharing app, and may be used by larger companies, but it's use is still limited.
- Zocam, BankShot: These are designed for use as a way of obtaining an earnest money deposit and has been used successfully. A link is sent out by the title company to the buyer who transfers funds through the link. A receipt is sent out to all that have been included on the link and funds are accepted and are non-reversible. Several people on the call acknowledged these apps.
- Payments, Earnest: These are websites designed for specific payment purposes, i.e., student loans, and as such inappropriate for a real estate purchase. (I apologize for any miss-spelling).
There were several lively exchanges but overall, it was highly informative. All are also awaiting the first bog post by Mr. Carter.
Zoom Call with Jack Carter: Ways to Pay for Real Estate from ApplePay to Zelle
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