EMD Private Money Lendinf

You mean lending to people who want to buy a property but don't even have the funds for a deposit? In other words, lending to borrowers who are undercapitalized? Or lending to those who do have the funds but prefer that you assume all the risk?

Earnest money is deposited while the property is under contract and before closing. At that stage, there are no recorded liens, so these loans are unsecured. What is your plan to protect yourself if the transaction falls through and the seller keeps the deposit you funded?

Unless the borrower has other assets available to secure with a lien, lending unsecured funds to someone who either lacks the capacity to repay or simply wants you to bear all the risk is not a lending model I would embrace.

Ironically, earnest money deposit loans are often made by lenders who themselves lack the capital to make well-secured loans.

Perhaps @Lee Burns, you could elaborate on your process rather than keep it on a private call with no opportunity for public scrutiny. Did you make a single loan, or do you operate a successful, ongoing EMD lending business?