Lending Earnest Money

[Shawn Roberson]

I have a real estate investor who wants to borrow earnest money ($1,000) and a proof of funds letter. He waiting on his money to come in but does not want to lose the deal. What kind of fee should I charge to lend the earnest money. I usually send a copy of a earnest check and go from there. His concern is they may ask to verify funds and he does not have it in the bank but I do. So what kind of fee or percentage should i ask for ?

Thanks

[Kyle J.]

He may run into a problem if the purchase contract is in his name and the proof of funds is in your name. Usually that wouldn't work. The seller wants to see proof that the actual buyer has the ability to close. Not his friend. 

Anyway, with that being said, I'd be hesitant to loan money at any interest rate to someone who doesn't even have a $1,000 in the bank.