Frequently Asked Question
Earnest Money Deposit (EMD) Funding FAQs
What is Earnest Money Deposit funding?
Earnest Money Deposit funding provides business purpose capital to place earnest money with escrow so a purchaser can secure a real estate purchase contract without using their own cash.
Who is EMD funding for?
EMD funding is intended for experienced wholesalers and real estate investors with a valid purchase contract, a defined inspection period, and a clear exit strategy such as an assignment or double close.
How quickly can EMD funds be placed with escrow?
Funds are typically placed with escrow within 24 to 48 hours once the transaction is approved and all required documentation is received.
What documents are required for EMD funding?
Required documents generally include the executed purchase agreement, escrow or title company contact information, inspection period details, and a signed EMD funding agreement.
Is the EMD refundable?
Refundability depends entirely on the terms of the purchase agreement. We only fund EMDs that are refundable during the inspection period or otherwise clearly protected.
Do you fund EMDs nationwide?
We fund EMDs in most states, subject to state specific rules, title company cooperation, and deal structure. Certain states or transaction types may be excluded.
Where are EMD funds wired?
All EMD funds are wired directly to the escrow or title company. Funds are never wired directly to sellers, buyers, or wholesalers.
Can the EMD be extended if the deal needs more time?
Extensions during the refundable inspection period may be approved, subject to an additional extension fee as outlined in the funding agreement.
How are EMD funding fees structured and paid?
EMD funding fees are structured as a flat fee or a percentage of the earnest money amount, subject to minimum fees.
Fees are earned when EMD funds are deployed to escrow, regardless of whether the transaction ultimately closes. Fees are typically paid from escrow at closing or as otherwise specified in the funding agreement.
What happens if the deal cancels?
If the transaction cancels within the refundable inspection period and funds are returned by escrow, the earnest money is returned per the funding agreement. Fees already earned are not refundable.
Double Close Funding FAQs
What is double close funding?
Double close funding provides short term transactional capital to fund the A to B purchase so the property can be resold in a B to C transaction, often on the same day.
Who uses double close funding?
Double close funding is commonly used by wholesalers and investors who need to complete two closings instead of an assignment due to deal structure or seller requirements.
How long are funds outstanding in a double close?
Funds are typically outstanding for a very short duration, often same day or within 24 to 72 hours depending on closing logistics.
What documents are required for double close funding?
Required documents usually include the A to B purchase agreement, the B to C purchase agreement, title commitment, settlement statements, and a signed funding agreement.
Do both closings need to occur at the same title company?
Yes. With very rare exception, the A to B and B to C closings must occur through the same title company or attorney.
Is double close funding considered a loan?
No. Double close funding is transactional in nature and structured for business purpose real estate transactions. It is not consumer lending.
Do you fund the full A to B purchase price?
In most cases, yes, subject to review of the B to C transaction, sufficient spread, and title readiness.
What happens if the B to C buyer fails to close?
If the B to C transaction does not close, the wholesaler/investor remains responsible for repayment of funds and fees per the funding agreement.
How are double close funding fees structured and paid?
Double close funding fees are structured as a flat fee or a percentage of the A to B purchase price.
Fees are earned when funds are deployed and are typically paid from escrow at the B to C closing, as outlined in the funding agreement.
How quickly can double close funding be approved?
Once all required documents are received and the title company confirms readiness, approvals are often completed within 24 to 48 hours.
Title Company FAQs
Who is Primo Capital Partners in the transaction?
Primo Capital Partners acts as a transactional funding provider supplying business purpose funds for EMD and double close transactions. We are not a party to the purchase agreements unless explicitly stated.
Are funds wired directly to sellers or wholesalers?
No. All funds are wired directly to the escrow or title company only.
Do both sides of a double close need to close at the same title company?
Yes. With rare exception, both the A to B and B to C transactions must close at the same title company or attorney.
Will Primo Capital Partners appear on the settlement statement?
Yes. Primo Capital Partners is typically listed on the settlement statement as the funding provider, with fees disclosed per the funding agreement.
Do you provide escrow instructions?
Yes. We provide written escrow instructions outlining disbursement conditions and fund control requirements.
Do you provide escrow instructions?
Yes. We provide written escrow instructions outlining disbursement conditions and fund control requirements.
Are funds conditioned on the B to C closing?
Yes. Double close funding is contingent on the successful completion of the B to C transaction.
Do you require title insurance?
No. However, clear title sufficient to close both sides of the transaction is required.
Are these transactions considered loans?
No. These are business purpose transactional funding arrangements, not consumer loans.
What happens if a transaction cancels?
Funds are returned and disbursed per written escrow instructions and the funding agreement.
Who should the title company contact with questions?
Title companies may contact Primo Capital Partners directly to confirm wiring instructions, escrow requirements, and closing logistics.
LEGAL AND RISK DISCLOSURE: Primo Capital Partners provides business-purpose transactional funding for real estate investors. All funding is subject to approval, executed agreements, and written escrow instructions. Primo Capital Partners does not provide consumer loans or legal advice. Terms, availability, and eligibility may vary by transaction and jurisdiction.
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