Is it a sign of things to come?

[J Scott]

Could be absolutely meaningless, or it could be a sign of things to come, but a large out-of-state investor who has been buying a lot of deals in Atlanta (including one from us) has lost its funding...

This isn't a hedge fund or any of the big name investment funds, but these guys had an 8-figure proof of funds and have made offers on several of our properties recently. They had a contract on a property owned by a friend of mine, scheduled to close today. The agent called my friend a couple hours ago and said they needed to terminate because they got their funding pulled.

Craziest part is that the agent claimed that the buyers hadn't funded the earnest money (which should have been done a week ago), so as of now, he can't even easily collect that. I wonder how many lawsuits there will be against the brokerage for failing to properly collect and maintain earnest money?

Quite possible this was just an isolated event relating to a specific investment group and their funding source (that's my guess, actually), but who knows, maybe this is indicative of bigger issues within the industry.