Factoring in Earnest Money Deposits?

[Jordan Solomon]

One thing I'm confused about is earnest money deposits and how to account for them when coming up with my offer amount. Let's say, just for an example, that an earnest money deposit of $5000 is required (we're obviously talking about a hypothetical listed property here). Does that mean that for me to make $5000 on the deal, my spread has to be $10,000? Or, otherwise stated, that if my spread of only $5000, I'll only break even on the deal? Thanks.