Options to fund EMD?

Question

So I ran across this Jerry Norton video where he says part of the time you may be able to pay your EMD using your end buyer's EMD if you put in the contract a clause saying that you will pay your EMD at the end of your inspection period. Has anyone had experience with this in 2023? Does it still work?

Another option I ran across is using a gator lender (pace morby's method) to JV on the deal. Does anyone have experience with this?

Appreciate the help.

Another option I ran across is using a gator lender (pace morby's method) to JV on the deal. Does anyone have experience with this?

Appreciate the help.

Don Konipol · Answer

While both are POSSIBLE, it’s not probable.  No reasonably competent seller will allow a “buyer” to tie up his property with no earnest money, unless he’s mentally challenged or desperate to the extreme.  Pace Morby has been discussed in many threads on BP.  After 40 years in real estate I can tell you this; the number of lawsuits that are going to result from this lending of earnest money is going to be astronomical.  Spelled “FRAUD and MORTGAGE FRAUD.

Karl Washington · Answer

Yea that’s kind of what my gut was telling me. Thanks for the response

Chris Seveney · Answer

@Karl Washington

Maybe this worked in 2009 when people were begging someone to buy their house but chances of this happening today are slim to none and slim left town