How can I get to borrow earnest money?

[Sandrene Smart]

How can I go about getting earnest money quickly?

[Austin Beveridge]

I have some connections that provide funding for EMD and double closes, lmk if you'd like an intro!

[Sandrene Smart]

What is your contact?

What is the interest rate?

What is your turnaround?

[Austin Beveridge]

They're private investors, do on average $10-25M per month in funding. There is no interest rate, its a flat fee based on the amount borrowed. EMD 2-3 days, Double Close - 24hrs

[Sandrene Smart]

Hi Austin 

I just you and left a voicemail. I would like to speak with you regarding EMD Lenders.
thanks Sandrene

[Michael Ciambra]

@Sandrene Smart Hey I also can lend on EMD, double closes ect. Would love to connect with you

[Mohammed Rahman]

Hey @Sandrene Smart - there are a few companies out there that lend on EMD. Most of them won't issue the loan if its a small amount though so be mindful of that.

A quick google search should yield you some results. 

[Chris Seveney]

@Sandrene Smart

Honestly not trying to be mean but if you do not have $ for the EMD you should not be buying real estate as it's a very cash intensive industry and you need $ for real estate

[Sandrene Smart]

Chris

I am a real estate investor. I am several individuals I know have been flipping, wholesaling, etc. 

The reason you have EMD is because from time to time as you do many deals, you use EMD….

The reason there is such a thing as EMD is because, many others use it.

thanks for your input 

[Thomas Santella]

Quote from @Chris Seveney:

@Sandrene Smart

Honestly not trying to be mean but if you do not have $ for the EMD you should not be buying real estate as it's a very cash intensive industry and you need $ for real estate

I disagree, especially if it is an investment. Most investors I know including myself don't use their own money for deals unless they absolutely have to. If it is your primary residence, you (and your partner if you have one ) are the only one servicing the debt. In that case, you better be liquid, making income and even have a few months of reserves

[Chris Seveney]

Quote from @Thomas Santella:

Quote from @Chris Seveney:

@Sandrene Smart

Honestly not trying to be mean but if you do not have $ for the EMD you should not be buying real estate as it's a very cash intensive industry and you need $ for real estate

I disagree, especially if it is an investment. Most investors I know including myself don't use their own money for deals unless they absolutely have to. If it is your primary residence, you (and your partner if you have one ) are the only one servicing the debt. In that case, you better be liquid, making income and even have a few months of reserves

 how many deals have you done and how long have you been doing them? I see you just graduated college and started your business. 

[Thomas Santella]

@Chris Seveney Realtor for under a year yes, but about to close my third rental property with none of my own money. I have two 4 units, and this will be an out of state 6 I am converting to an 8 unit. Many investors doing much more than me in my network, and throughout the BP community, do much larger deals and do them without their own money. Does it help? Absolutely. Is it right for you to tell someone not to invest in real estate because they don't have a lot of money? I don't think so. 

[Sandrene Smart]

Chris

I am new to Bigger Pockets and have enjoyed it except for you and this negativity. Note, this will be the last communication with you. Clearly, you are wrong on all your information. Actually, My background is healthcare for over 27 years with two Masters. I have done 7 total wholesales and a few flips… I find you to be a negative individual… very sad for you!

These forums are not for personal attacks mentioning someone education as you feel its the only qualification to be an investor…. Wong  Again!!!

Sir, I asked a question as many do on these platforms… if you don’t have anything positive to say…. Just don’t say it.. good bye and good luck with your endeavors. Be blessed!

[Chris Seveney]

Quote from @Thomas Santella:

@Chris Seveney Realtor for under a year yes, but about to close my third rental property with none of my own money. I have two 4 units, and this will be an out of state 6 I am converting to an 8 unit. Many investors doing much more than me in my network, and throughout the BP community, do much larger deals and do them without their own money. Does it help? Absolutely. Is it right for you to tell someone not to invest in real estate because they don't have a lot of money? I don't think so. 

 It 100% absolutely is ok to tell someone to invest in real estate with no money. What is wrong with this website is the majority of people on this site have no idea how to evaluate risk.

When you have 25 year old hot shots trying to brag about how easy real estate is only to see them go crying to mommy in five years when they are completely underwater and are like "oh me" - ask me how I know. I saw it in 2001, saw it in 2008. 

Will I benefit, yep - absolutely not because I am sitting on piles of money ready to buy these properties at half price. 

But I also will educate people on having half a brain and understanding that what has occurred the past several years is not how real estate really is and recency bias kicks in.

Share with me some statistical data that shows investing in real estate with no money is not as risky? I can share with you 50 years of data including FHA data that shows the less money you have the more likely you will default....

[Thomas Santella]

When did I ever brag? I gave my opinion which I am allowed to do. I only spoke of my investments after you asked. I don't disagree with you, it absolutely is better to have cash investing in real estate and less risky. However, most people don't when they get started and neither did I. It is not a requirement to invest in real estate, many people are successful starting without it and that was my point. Not once did I say it is less risky, which it is. No need to get so but hurt that someone disagreed with you. Congrats on your piles of money. And I am 23, not 25.. 

[Nicholas L.]

@Thomas Santella

I am genuinely curious, did you truly borrow 100% of the funds for your deals - to include EMD, closing costs, down payment, etc.?

I had the same general reaction @Chris Seveney did...

I like to distinguish between what's possible and what's likely

Lots of posters:

"I can't believe how high the closing costs are on my loan - no one told me this"

"I don't have a down payment how do I get one"

"This tenant turnover is costing me thousands of dollars!"

If OP is experienced, that's great.  Chris is just trying to look out for them, that's all.  If you have a method that works for you that's great too.

[Steve K.]

Buying with "none of my own money" is what we call being over-leveraged, and deal structures like this is what leads to a huge wave of foreclosures in a downturn. Now it's considered cool I guess. 

If you're well-capitalized and have significant reserves, but you're just looking for ways to do more deals at once, then maybe borrowing the EM can make sense in certain rare circumstances. But generally I'd agree that anyone who NEEDS to borrow EM, probably shouldn't be doing that deal as the risk is too high. This is what we'd call a "subprime borrower", again harkening back to the days when lots of folks got burned when the market declined and they realized they were underwater on multiple properties, and ended up losing all of their properties to foreclosure. 

[Michelle Upton]

Sandrene, Congratulations on having multiple deals! I can help you with earnest money deposits. We can close quickly, 2-3 days if all your ducks are in a row. To protect all parties, monies are run through the escrow/title company and remain there until the deal is done. There is a flat fee depending on amount needed. Please reach out and I will get you the rate sheet. Thank you

[Chris Seveney]

@Sandrene Smart

My post to you was stating my opinion / I made no comments about you

I stand by my comment / if you don't have EMD you shouldn't be buying real estate

Why not ask any financial advisor or bank this question ? What do you think their answer should be

Just because you don’t like my opinion doesn’t mean I should not voice it.

[Lindsey Oliver]

Just messaged you @Sandrene Smart!

[Nathan Holt]

Quote from @Sandrene Smart:

How can I go about getting earnest money quickly?

Hey! I can bring any EMD or Double closing funds you may need. Feel free to reach out anytime! . Let's connect sometime to discuss how we can work best together!

[Michael Lohrenz]

Sandrene, just following up if you got the EMD money for your deals? I can assist with EMD and other funding as well.