EMD dilemma when trying to get property under contract

[Monica Caliber]

I'm doing a JV with partner who will bring a buyer.

Our dilemma is that we can't get property under contract unless we put down EMD (buyer refuses to sign AB contract without EMD), and we cannot get EMD from buyer unless we show the buyer the property (which my JV partner is afraid to do before we get property under contract).

Is there any solution to this dilemma?

[John Karg]

Hi Monica, depending on your relationship with the possible buyer, you could always sign an agreement that they won't go around you to purchase the property before having them put down the EMD. It's not a foolproof solution, but most investors would honor such a document, even if not legally binding.