How do I go about handling the EMD (Earnest Money Deposit)? What if I do not have the funds to submit on my behalf?

An earnest money deposit (EMD) has to be put in at some point in time on a deal. Typically, the deposit has to be put into escrow within 72 hours from the date of acceptance on the contract from all parties involved. This means from the time both you and the seller have signed the contract. A common term used for when all parties have signed the contract is the word of "executed." It is not an "executed contract" once all parties have signed and accepted the contract.

What’s great about the Pro Wholesaler System is that from following the steps of developing genuine relationships with financing partners and knowing their EXACT buying criteria, you have now found the exact types of property they want. This speeds of the process of wholesaling the property & now you do not need to go finding financing partners AFTER you have gotten the deal under contract because you have already completed that necessary work.

Once you get the property under contract, now you can reach out to the financing partner letting them know about the property. You can typically get an answer from your financing partners well within 72 hours and assign the contract to them. This means that you do not have to put in the deposit, and that the financing partner actually puts in the deposit!

This is the best method, and what we recommend so that you do not need to put in a deposit.

If, for some reason, you cannot wholesale the deal within the 72 hour time period and have the financing partner put in the deposit, then consider this option:

- You pay the deposit by borrowing capital from someone else.

In order to make deals work, sometimes you need to borrow capital from someone else for the deposits. This is not uncommon, especially when the deposits are refundable (typically ALL deposits are refundable when you abide by the contract and back out of the deal due to your INSPECTION CONTINGENCY - the contract is ALWAYS the law of the land so be sure to double check it & always include the INSPECTION CONTINGENCY). It is essentially a no risk way for the person lending the money to make quick capital because you can either 1) pay them 10% of the wholesale fee for using their capital, or 2) pay them 10% annualized interest on their money for letting you borrow it. 

Note: The payout amounts of 10% of the wholesale fee, or 10% of annualized interest on their money, are what Pro Wholesaler Members have successfully used to use other people's money for the deposits.