Do you give EMD on your deals?

[Jose Diaz]

Hello everyone.  I was listening to a Sean Terry Podcast and in it he says he rarely if ever give earnest money deposit when doing a deal. I was under the impression you had to in order to establish some sort of real interest in deal.

What is everyone's opinion on EMD?

[Matt Nehring]

Please Google "consideration".  A contract is not enforceable unless consideration has been given.  Most wholesalers do not give consideration, which is fine if the transaction settles without issue.  If there were an issue (like if the seller accepted a higher offer after accepting your offer), your contract would not be enforceable in court.  If your wholesale deal is worth $5k, you move on to the next deal.  If your deal is worth $50k, you wish you hadn't written that $10 check which would prove you gave consideration and made your contract enforceable.