What is Earnest?
Earnest funds Earnest Money Deposits for real estate developers and operators, so you don't have to. We can fund up to $500k in as quickly as one week.
What is an Earnest Money Deposit?
When a real estate owner agrees to sell their property, the buyer usually needs to fund an earnest money deposit ("EMD"), sometimes known as a good faith deposit, in order to go to contract.
Deposits can be "soft," meaning the money is refundable until an agreed up commitment date, or "hard," meaning that it's non-refundable.
Why Use EMD Funding?
Move Faster:
Preserve Cash:
Grow Portfolio:
Real estate deals can be fast paced and highly time sensitive. EMD fundings help investors compete by allowing them to make offers quickly.
Preserve Cash:
Deposits generally range from 1-6% of the sale price, which can add up quickly.
A 3% deposit on a $10 million deal would be $300k! EMD loans allow you to stay liquid or go to contract on more deals.
Grow Portfolio:
Pursue much larger transactions than you would historically knowing EMD funding is available.
How it works?
Earnest funds the EMD directly and serves as the buyer entity under the Purchase and Sale Agreement, offering the end buyer maximum flexibility. If the end buyer opts to close the transaction after completing their due diligence, they have the right to exercise a "purchase option" assigning the rights to acquire the property back to them.
01
Submit online EMD request form and draft PSA.
01
Submit online EMD request form and draft PSA.
02
If approved, Earnest auto-termination language is incorporated into PSA and Earnest entity serves as buyer entity.
02
If approved, Earnest auto-termination language is incorporated into PSA and Earnest entity serves as buyer entity.
03
Real estate buyer funds EMD fee.
03
Real estate buyer funds EMD fee.
04
Earnest executes PSA and funds Earnest Money Deposit.
04
Earnest executes PSA and funds Earnest Money Deposit.
05
Real estate buyer conducts due diligence per time frame laid out in the PSA.
05
Real estate buyer conducts due diligence per time frame laid out in the PSA.
06
Real estate buyer pays exercise fee to assume the PSA or Earnest cancels the contract.
06
Real estate buyer pays exercise fee to assume the PSA or Earnest cancels the contract.
What It Costs?
Client Testimonials
We are here to help you when you need your financial
support, then we are help you.
Earnest has been a vital resource for me to make more competitive offers and get more deals under contract. I feel like Eric and Vernon have become extensions of my deal team.
Marcus Brown
Earnest has been a vital resource for me to make more competitive offers and get more deals under contract. I feel like Eric and Vernon have become extensions of my deal team.
Marcus Brown
