EMD Best Practices Process

[Curtis Harvey]

I have a question.  I have a 10 unit property that I have offered the following

50% owner financing

50% private money financing

The property should appraise at $100k over the purchase price

It is in a average area of a great city with no rent controls

I have questions about the EMD terms and I would like opinions about the best practices around EMD.

Price of the property is 1.5M

$20k EMD

The buyer to have 72 hours hours after visual inspection on Monday to remove all contingencies or to cancel the transaction. In the event, the buyer does not cancel the transaction within 72 hours of visual inspection EMC to be forfeit in full to the seller with no future written notice.

Is this normal? What should be changed in order to protect my EMD? I spoke with another investor and he said that I should add to the document that my EMD be returned back to me at closing via disbursements or add verbiage that makes the EMD refundable or $1,000 forfeit is I cancel the contract. I just want to avoid things that will cause me to lose the EMD.

I would like to know how everyone else handles EMD issues. Thanks in advance for your input.