When to ask for EMD

Question

Hi, when is the proper time to ask for the EMD for a wholesale deal? Is it okay if I ask for the EMD right before I disclose the address to my buyer so they can do a walkthrough or should ask for it after I have already disclosed the address to the buyer?

David Ramirez · Answer

EMD is due after signing the assignment agreement. I only give the buyers 24 hours to deposit it if not I'll go with the next buyer. Make sure you have everything stated in your contract. HMU if you need guidance with agreements.

Good luck!

Ned Carey · Answer

@Mark Weins You ask for an EMD when your buyer puts it under cotract. The contract should state the amount of time they have to put the EMD down. This is the same for a wholesale deal or any other deal.

You should disclose the address to the buyer the moment you start marketing it. Only a fool would consider a deal with no address disclosed. If you send a deal to me without an address, I know you are a stupid newbie wholesealler that dosens't have a clue.

Jeremy Horton · Answer

I don't give an EMD until I am under contract. Why would I?

If you're wholesaling, the EMD amount, when it is due etc will be in the sale agreement. You can likely download and use one for free off of your state's real estate commission page. That's where I get the majority of my forms from

Tim Delaney · Answer

@Mark Weins you can only ask for EMD after a signed contract is in place. You won’t get a signed contract from a buyer if they don’t know what they are buying. Taking that a step further, not only do you need to disclose the address and arrange access for the buyer prior to signing anything, but you also need to share your contract with the seller to the buyer. The buyer is buying the contract and therefore has a right to review it prior to signing any agreement with you. After all of that is done and agreement is signed you can ask for EMD. Also depending on the state you are in don’t be surprised if the buyer sends that EMD through their attorney direct to your attorney.

Alex Hroma · Answer

Aren’t there inspection periods?

When to ask for EMD

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