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EMD & Transactional Partners
Wholesalers do you require EMD or funding for a Double Close? We present an exceptionally unique opportunity for a joint venture partnership on your deals. We can provide the necessary funds to validate your contracts and ensure they are legitimately placed into escrow. We can also provide the capital to get your Double Close to the finish line.
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EMD & Transactional Funding
Wholesalers, if you require EMD or funding for a Double Close, consider our unique joint venture program. We not only provide the necessary funds to validate your contracts and securely place them into escrow but also understand the intricacies of wholesaling. We can assist in finding buyers for an additional fee, charged only upon successful acquisition. Most wholesale contracts need to meet the 65% rule to attract fix and flippers, so understanding the numbers is crucial. By collaborating with us, you ensure that our network of buyers trusts our judgment when we present them with opportunities, fostering profitable partnerships in the real estate market.
IMPORTANT NOTICE:
To ensure the security and safeguarding of our funding, it is imperative to utilize our designated wholesale contract. If a deal is already under contract, kindly provide us promptly with the contract you've employed for our review. In such instances, we will necessitate an addendum to safeguard our investment. For all future transactions with us, we will REQUIRE the use of our contract. We encourage you to download and openly share this contract with other wholesalers you may refer to our services.
EMD & TRANSACTIONAL FUNDS
EMD & Transactional Funding Program Details
Due Diligence:
Minimum of 5 Business Days
Transaction Coordinator:
TC Required. Fees Vary. Expect $1,000 - $2,000
NON REFUNDABLE Upfront Fee:
EMD Deals Require a 5% Upfront Fee ($250 Min)
Buyer Acquisitions:
TBD - Expect Around 50% of Assignment
EMD Cancelation
2 Business Days Prior to Due Diligence w/o Buyer
Max Funding:
We Have Never Capped Out
Experience Level:
None Required
Additional Days:
1.5% Per Day Money is Held in Escrow
Frequently Asked Questions
1. Why should I have EMD to open escrow?
Having an Earnest Money Deposit (EMD) to open escrow is not just a customary practice; it's a fundamental step that signifies your serious intent and ensures the validity of the contract. When you provide EMD as part of your offer, it demonstrates to the seller that you are a committed and genuine buyer. This deposit serves as a tangible expression of your earnestness to proceed with the purchase, legally binding the contract and instilling confidence in the seller that the deal is progressing with a dedicated party. EMD not only solidifies your position as a sincere buyer but also establishes the groundwork for a secure and legally sound real estate transaction.
2. What is a double closing?
A Double Close real estate transaction, also known as a simultaneous closing or back-to-back closing, is a sophisticated real estate strategy used to facilitate the sale of a property through two sequential transactions conducted in rapid succession.
Here's how a Double Close typically works:
1. Purchase Agreements: Instead of the conventional single purchase agreement, a Double Close involves two separate purchase agreements. The first is between the original seller and an intermediate buyer (often referred to as "Buyer A"), while the second is between the intermediate buyer (Buyer A) and the ultimate buyer (often known as "Buyer C").
2. First Closing (A-to-B): In the initial phase, the intermediate buyer (Buyer A) purchases the property from the original seller, typically with their own funds. At this point, JK Creative Systems, as transactional funders through joint ventures, can step in to provide the necessary capital for Buyer A to complete this A-to-B transaction.
3. Second Closing (B-to-C): Following the first closing, the intermediate buyer (Buyer A) promptly sells the property to the ultimate buyer (Buyer C), often at a higher price. Buyer C provides the funds for this transaction.
4. Ownership Transfer: Legal ownership of the property transfers first from the original seller to Buyer A in the initial closing and then from Buyer A to Buyer C in the subsequent closing.
Double Closings are frequently employed by wholesalers for various reasons. One common motive is to conceal the assignment fee they earn from the original seller, as this fee can be substantial. Additionally, some jurisdictions have implemented laws that regulate or restrict wholesaling transactions, prompting the use of Double Closes to navigate these legal challenges.
It's important to note that disclosure requirements in Double Closings can vary. While disclosure to all parties involved is not necessarily mandated by law, it is often a practice encouraged by ethical standards and required by some title companies. In some cases, wholesalers may choose to employ two different title companies to manage each phase of the transaction.
3. What are your fees for transactional funding?
2% for 24 hour transactional loan (minimum return of $2000)
+ 1.5% per day fee for addition days money is held in escrow
+ *If there are two separate title companies involved in the double close we charge 3%*
If there is additional paperwork/terms for Morby Method / Transactional, for example a deal over 500k or needing us on the operating agreement we charge 3%.
(Please note that all the above numbers are on average and subject to change at anytime time.)
4. How do you get paid on EMD?
We will not allow our money to go hard unless a buyer has submitted their EMD. The buyer's EMD MUST exceed our funding and fees. If the deal does not go through the seller has already agreed that EMD is refunded to us. This is how we stay protected from going out of business. That being said, we make our money at closing. Your assignment fee will cover our funding fees and additionally net you a substantial profit.
5. Do you have upfront fees?
Yes. For EMD we have a 5% upfront deposit ($250 minimum), NON REFUNDABLE, credited toward the fees if the deal goes through. (This fee is wired/zelled directly to us and paperwork on fees will reflect the difference between initial deposit and fee)