I have my eye on many REO properties in various areas. However, I’m not wanting to use my own cash for the EMD requirement and POF/Hard money letter. Does anyone know of companies through which I can acquire (especially) the EMD? I have several leads on the POF, including one linked on this page. The ability to acquire the EMD is proving more elusive though. Please let me know
A lot of times, you won’t be asked for the EMD until the offer gets accepted. You should make sure the REO property you want to make an offer on is something your buyers will be interested in. This way, as soon as you make an offer, you can tell your buyers about it. By the time your offer gets accepted (wishful thinking), you can collect a deposit from an interested end-buyer and use that deposit to pay for your EMD.
I’ve read and was also told by a Realtor that had REO listings that you can use a copy of a check as EMD, if it’s needed at the time of the offer.
Don’t sweat the EMD at this time. Just get your POF letter and look for good deals.
there’s a lot of proof of funds letters out there. On this page there’s a link top left to download one.
The last several wholesale’s I’ve done, I have collected a certified funds check equal to or greater than my EMD before I wrote a real check (non certified) More than 50% of the time they never cash the check anyway or someone loses it.