MEGA INTERNATIONAL FINANCIAL SERVICES LTD
GAP FUNDING/EMD/ TRANSACTIONAL FUNDING
GAP Funding Waiting on a buyer to close a deal but need to purchase a property right away?. We have Direct Private Money Lenders interested in assisting you cover your Down payment and Closing cost at a competitive rate.Contact us
Earnest Money Deposit (EMD) Funding
Found a property to wholesale, buy, or flip and need to put earnest money deposit down to secure it?
What Is Earnest Money Deposits?
Earnest Money Deposit Definition
Initial payments from a buyer to a seller, known as earnest money deposits, showcase the buyer's commitment to a real estate purchase. These payments demonstrate the buyer's sincere intention to buy, encouraging the seller to take the property off the market during the deal's progression. Typically held in an escrow account, this deposit is later allocated to the buyer’s down payment or closing costs upon the successful completion of the sale.
How Earnest Money Deposit Works
Determining the Deposit: Both buyer and seller reach an agreement on the amount of earnest money, usually set as a percentage of the home's sale price.
Making the Payment: The buyer then deposits the agreed sum into an escrow account, managed by a neutral third party, where it stays safeguarded until the transaction either completes or is terminated. Handling Contractual Contingencies: The purchase agreement outlines specific conditions—like securing financing or passing a home inspection—that need to be fulfilled for the sale to advance.
Allocation of the Deposit: Upon a successful transaction, the earnest money contributes towards the buyer's initial down payment or the closing fees. Conversely, should the sale not materialize due to unmet contingencies, this deposit is generally refunded to the buyer.
Deposit Forfeiture: In instances where the buyer withdraws from the purchase without a justified reason as per the contract, the seller is entitled to retain the earnest money as recompense for the period the property remained off-market.
Why Earnest Money Deposit is Important for Real Estate Deal
Demonstrates Buyer Commitment: It reassures the seller of the buyer's intent to purchase, making the offer more attractive compared to others without such a deposit.
Protects the Seller: If the buyer reneges on the agreement without cause, the deposit compensates the seller for the time and opportunities lost while the property was reserved.
Encourages Serious Offers: It filters out non-serious buyers, as only those with genuine intent are likely to put forward earnest money.
Foundation of Trust: By committing money upfront, both parties show a willingness to invest in the transaction, laying a foundation for trust and cooperation throughout the process.
Premier Transactional Funding
Empowering Business Investors, Real Estate Investors and Wholesalers with Fast, Reliable Double Closing Transactional Solutions.Get Funded
Transactional Funding Double Closing Details
Fast approval and delivery of funds
Funds are lended out for 24-48 hours
Real Estate: All types of real estate asset classes including: residential single family, residential multi-family, commercial multi-family, mobile home parks, RV parks, self-storage, flex, industrial, etc
Businesses: All industries.
Verification of title companies and/or attorneys involved is required
Loans are up to $100,000,000 dollars
Need more than $100,000,000 million? Contact Us