Ever lost a real estate deal because you didn’t have the cash for a large Earnest Money Deposit (EMD)? It’s a frustrating experience that Oakstone Lending is here to prevent. We specialize in transactional lending for wholesalers, providing quick and reliable EMD funding so you can secure high-value deals without risking your personal cash flow. Let’s break down everything you need to know about large EMD funding.
What is an Earnest Money Deposit (EMD)?
An EMD is your way of showing a seller you’re serious about buying their property. Typically a percentage of the purchase price, it’s held in escrow until closing. In competitive markets, large EMDs are often required to stand out and demonstrate commitment.
Oakstone Lending’s EMD Lending Services
At Oakstone Lending, we know timing is everything. That’s why our EMD funding process is fast, straightforward, and transparent. Here’s how it works:
- Flat 40% Return: On all EMD deals, we charge a flat 40% return on the funded amount with a $2,000 minimum.
- Non-Refundable Fee: A $250 transaction coordinator fee is required upfront.
- Quick Approvals: Submit your deal online, and we’ll get to work right away.
So, What’s It Cost?
EMD Deals
We charge a 40% return on all EMD lending deals, with a $2,000 minimum return. For example, if we fund a $10,000 EMD, our total return upon closing would be $14,000 ($10,000 principal + $4,000 profit). A $250 non-refundable fee is required upfront to cover our transaction coordinator.
Double-Close Funding
For double closings, we charge a 1.5% flat fee with at least one week’s notice. Deals needing faster funding may incur an additional 1% rush fee. Minimum return: $2,000.
Seller Carryback Funding
We offer seller carryback funding at a 2.5% fee, requiring one week’s notice. Rush deals are subject to approval and may incur additional fees. Minimum return: $2,000.
Examples of Large EMD Deals
Let’s look at how Oakstone Lending’s EMD funding works in real-world scenarios.
1. Commercial EMD Deal: Dallas, TX
- Property Value: $5,000,000
- Required EMD: $250,000 (5%)
- Funding Cost: $250,000 + 40% = $350,000
- ROI for Wholesaler:
- Resale Price: $5,500,000
- Net Profit (after fees): $500,000 – $100,000 = $400,000
2. Residential EMD Deal: Miami, FL
- Property Value: $500,000
- Required EMD: $25,000 (5%)
- Funding Cost: $25,000 + 40% = $35,000
- ROI for Wholesaler:
- Resale Price: $550,000
- Net Profit (after fees): $50,000 – $10,000 = $40,000
3. Multifamily EMD Deal: Los Angeles, CA
- Property Value: $2,000,000
- Required EMD: $100,000 (5%)
- Funding Cost: $100,000 + 40% = $140,000
- ROI for Wholesaler:
- Resale Price: $2,200,000
- Net Profit (after fees): $200,000 – $40,000 = $160,000
Why Choose Oakstone Lending?
When time is of the essence, Oakstone Lending is your best ally. Here’s why:
- Speed: Fast approvals mean you can secure deals before competitors.
- Transparency: No hidden fees—everything is upfront.
- Expertise: Our team understands the unique needs of wholesalers.
Mistakes to Avoid with EMD Funding
Even with funding in place, mistakes can derail your deal. Avoid these common pitfalls:
- Ignoring Terms: Always review the agreement carefully.
- Failing to Budget: Factor in all fees to calculate ROI accurately.
- Mismanaging Timelines: Ensure you meet closing deadlines to avoid penalties.
FAQs
1. What is Oakstone Lending’s minimum EMD funding amount?
We have no minimum funding amount but require a $250 transaction coordinator fee and a $2,000 minimum return.
2. How fast can you fund an EMD?
Most deals are funded within 24-48 hours after approval.
3. Are there additional fees if my deal falls through?
The $250 coordinator fee is non-refundable, but no additional fees are charged.
4. Can you fund deals in any city?
Yes, we provide nationwide EMD funding services.
5. What happens if my deal closes late?
As long as the deal remains active, terms stay intact. Late closings may require updated agreements.
