Wholsaling question and EMD

[Luis Herna]

Let say I find a deal to a buyer then we decide to submit a PSA with seller, so buyer signed me the assignment agreement, I submit the PSA to seller, once seller sign, I have 3 days to submit the EMD so do I have to provide the EMD or the buyer should provide the EMD?

[Michael Higgins]

Since the buyer agreed to make you the assignee, the assignee is responsible for providing the EMD to the seller.

[Luis Herna]

I am sorry but why is that? By assigning the contract to the The end buyer, he should be responsible since he is the one making the commitment to buy the property not me. 

[Preston Dean]

Do you have a title company working with this deal?

Usually EMD is submitted with a title company that way you are not physically handling cash

@Luis Herna

[Trevor Finn]

Hello @Luis Herna,

In this scenario, the buyer should provide the EMD (Earnest Money Deposit), as they're the one ultimately purchasing the property. You're acting as the assignor, so once the assignment agreement is signed, the buyer takes on the financial responsibilities outlined in the PSA, including the EMD submission. Just ensure this is clearly outlined in your assignment agreement.

But in my experience, typically the wholesaler submits the EMD with the PSA to the title company for escrow. For example, if the EMD is $1,000, you might charge your buyer $1,500 (as stated in your assignment agreement). The buyer then sends their EMD to the title company, and you specify to the Title agent that any EMD surplus balance is sent to you at closing. A serious buyer will deposit the EMD into escrow; if they don't, the PSA is voided, and time is wasted for both parties.

Some lenders do EMD funding! LMK if you need assistance!

[Dakota King]

@Trevor Finn Nailed this explanation! @Luis Herna if you need any assistance with funding for the emd let me know! Do you have a deal that you are working on currently?