BiggerPockets

Julian,

If I understand your post and it isn't a joke...

You had a verbal offer on a commerical property, based on this verbal agreement you were able to line up financing, and now it is time to execute a contract... and the seller wants an earnest money deposit.

Did I get this correct?

If so, I have to ask if this is your first negotiation... as the amount of the earnest money would always be included in these discussions.

What the seller is doing is ensuring that you are serious and that you will work hard to get the deal to closing.

If you haven't negotiated a due diligence periond into the contract... this would be a good time to go the seller and say... "yes... there should be an earnest deposit, but I will need a 30, 60 or 90 day due diligence period. Then negotiate the length of the due diligence to trade off the amount of the earnest deposit.

Good Luck... and let us know how it goes.

Julian, are we to assume you don't have earnest money? How did you get 100% commercial financing? If you didn't, where is teh cash to close coming from?
Why not give the EMD?

thanks for responding Will. Will, when I said commercial, I didnt mean commercial financing from a commercial source. Its money from a private investor. I apologize, that was misleading.
Curt thank u also for responding and thanks for the add.
I'm trying to acquire a commercial multifamily. Me being a newbie the earnest money is staggering 600k for a 12mm property. How did I get the money? gave up an equity stake. plus the property is making good money. I dont have the earnest money because Ive been laid off for 3 months. My back is against the wall right now. You guys are right, I should give it up. I appreciate your honesty guys.