EARNEST MONEY BUYER

EARNEST MONEY BUYER

Hello I m Shawn Pearl and we work with Earnest Money Deposits. There are many clients that will need earnest money for their residential commercial loans. If you need earnest money to help you close your loan please give me a call or give me email and ask for the application more information below 1. Wholesale contract flips where the buyer temporarily controls the house by putting it under contract with the owner and tries to assign it to another buyer during the contingency period within escrow. The next assigned buyer brings the cash to the table to buy out the wholesale flipper. Money problem resolved. 2. Rehabber buys the property and uses hard money sources as well as gap bridge money to buy the house long enough to fix it up and sell it usually several months total time to buy rehab the put it on the market and sell it hopefully for a profit. Money problem resolved. 3. Buy and hold. These are future landlords looking to buy a house then rent it out. Most try to use some form of conventional financing. Again money problem resolved. So here is a rundown on the different things we think you should know about how EMD funding works for our clients. 1. Risk free as we can make it. We do not charge any upfront fees for processing etc. If the escrow falls through you owe us nothing. (We just get our EMD funds back and hope to make money together on a future deal.) Our markups usually amount to a small percentage of the EMD requester s overall profit you keep the vast majority of your hard-earned profits in your pocket. 2. Our earnest money deposit (EMD) funds can never be allowed to go hard (nonrefundable) during escrow they must stay soft the entire time. After all the D in EMD stands for DEPOSIT those funds are not a down payment. However some sellers realtors and investors mix up the two. The job of the EMD fund requester (the buyer) is to bring in exit strategy monies (purchase price down payment rehab etc.) by close of escrow thereby removing any monetary incentive for the seller to want to try to keep hold onto the EMD monies. Here is why it is so important that EMD funds stay soft until escrow closes Should escrow fall through for any reason (buyer s fault seller s fault nobody s fault) and the EMD has already gone hard some sellers are tempted to try to keep the earnest money deposit monies as their own. We could lose the EMD funds we put up for you that is a not a risk we are willing to take. Thus it is vitally important that all offers made to sellers must include this fact. Doing so during the offering stage just makes it a normal part of the buying process thus hopefully preventing it from becoming a problem later. To help prevent this from becoming a problem please insert the following verbiage into all offers for which our EMD funding is to be used to facilitate a deal Should the escrow fail to close for any reason whatsoever regardless of which party cancels the escrow or of the status of any contingency or of the results of any inspection or of the time elapsed between date of acceptance and the scheduled closing date or date of cancellation the earnest money deposit shall be refunded in full to the Buyer by issuance of a check from the escrow company (or equivalent entity) to the account from which the deposit was received. 3. 1% EMD is the norm (say 5 000 on a 5 000 000 purchase price). Yet some sellers demand 2% 5% 10% or more. NOTE Anything above 1% may mean you have to pay higher markups. Best Regard Black Diamond Investments diamondinvestor8(at)gmail.com Shawn K. Pearl CEO Office 225.247.8976EARNEST MONEY BUYER