Earnest Money for Multifamily

6 Replies

Evening Bigger Pockets family,

Working on a deal and ran into an issue, after a month of working to get signatures for the PSA finally but now the issue is the individual that state they would put EM is out of the country. Anyone recommend a possible solution to keep from loosing the deal.  For the next opportunity we will put the money in a bank account to avoid this issue.  

@Dennis Johnson go find someone else who would be willing to put the EMD up! Give the carve out of the GP percentage. Include them in all the cash flows including the LP side. and include them in all the fees the general partner receives. Good luck

Thanks @Tj Hines thanks for the info and that has been the plan, the issue is time and we are running out of it.  I can send the carve outs but didn’t want to send out blind emails to just anyone.  Looking for potential referrals at this point to see if they would consider the business.  

@Dennis Johnson also keep in mind this too - according to how you're syndication is structured you have to be careful blasting out emails soliciting soliciting specific returns unless you have structured a 506C syndication. Just a lil heads up. But good luck with everything. Take care

@Tj Hines thank you, and yes we’re very mindful of the syndication offerings so that’s why i am looking at referrals and talking with other people with our friends networks. I believe we get the needed funding.

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