Seller asking 2% earnest money on a $300k multi family deal.

5 Replies

@Gerardo Escutia

Yes, it is normal for the EMD to go hard after the inspection period. Usually it is 1% but with MF being so competitive today this seller wants to make sure you are serious.

Many folks have been able to extend to 90 day contingency periods. 1% is standard, but money going hard after the inspection is common. Try to negotiate the term and %.

@Gerardo Escutia

Hard money is very common on multifamily deals, especially as you go bigger. Currently during the pandemic some markets are seeing deals trade without it, but in hot markets it has been consistent. We’ve seen $1M hard day one in Austin recently, even with everything going on. 1-2% is typical but some groups use even more to ensure they win the deal.