How Our EMD Funding Program Works
We offer EMD funding for wholesalers and investors who are purchasing real estate to assign, double-close or hold. Our EMD program is quick, simple and secure with no credit checks or appraisals. By leveraging our funding, you are able to preserve your capital for other uses (marketing, acqusitions, etc.). Our funding is risk free – the EMD funds are held by a title or escrow company and if your deal terminates, we just get our funding back. We are not lenders, but partners on the transaction. We are second line co-buyers so that we have a full view of the transaction and all paperwork. When the deal closes, we get our funding deposit back plus our fee and you move forward with the property.
Requirements:
- Fully executed/signed purchase agreement
- Reputable title company/attorney
- Signed Mutual Release Seller Addendum
- We are not able to fund non-refundable EMD and EMD cannot go hard
Costs:
- $250 non-refundable funding fee due at application approval and before EMD funds are released
- We charge a 40% fee on EMD funding (example: $10,000 EMD funds x 40% = $4,000 fee)
In any home purchase transaction, earnest money is typically required as a sign of good faith to show the seller that you are serious about the offer. In an off-market or wholesale transaction, the amount can vary and is subject to negotiation. Generally speaking, the more earnest money you can put down, the greater your credibility. In retail transactions between buyers and sellers, EMD ranges from 1% to 3% of the purchase price.
Once the seller accepts the offer, the earnest money is deposited into an escrow account, held by a neutral third party (like an escrow company, or title company). This ensures that neither party has direct control over the money during the transaction. If the sale goes through as planned, the earnest money is usually applied toward the buyer’s down payment or closing costs.
Time is of the essence when purchasing off-market, distressed or under value MLS deals. Our rapid EMD funding allows you to get the property under contract quickly and securely. We also understand the importance of utilizing your capital for marketing and lead generation. With our funding, you can preserve your capital for these business generating strategies.
If your deal terminates or does not close, we only charge you the $250 non-refundable funding fee. This fee covers our transactional coordinator costs which we incur whether the deal closes or not.
Yes, we can quickly provide you with a POF letter. Please call us at (866) 636-1063 and let us know the following:
- Borrower’s Name
- Loan Amount
- Property Address
