Let's review one of our recent EMD deals. The deal: a buyer had a 75 unit purchase under contract in Houston, two buildings, and needed $20,000 in earnest money he did not have liquid. 📅 Early March. The request comes in and our team reviews it. We look at the contract, the structure, and confirm the earnest money is refundable during due diligence. ✅ 📅 March 11. The buyer pays our minimum upfront fee. ✅ 📅 March 12. We wire the $20,000 earnest money into escrow. The buyer now controlled a 75 unit deal on the strength of our funds. 📅 The next few weeks. The money sits in escrow through the due diligence period while the buyer works the deal. 📅 April 7. Twenty six days after we funded, the deal has not make it to the closing table and we cancel prior to the end of the refundable period. The full $20,000 was wired right back to us. The question is always, "how much did we make?" We covered capital with the upfront fee, but didn't make profits because we had to cancel. If the deal had closed, we would have earned our 20 percent fee at closing. Unfortunately, it did not close, but fortunately we had all the right docs and agreements in place so we came out clean. And that is a painful truth about EMD. A high percentage of them do not close. Our money was out for 26 days, fully exposed to the deal, and it came back because we protect it with a refundable structure. We earn the upfront fee and that covered our expenses. This is why we tell you to use EMD to learn the game and cut your teeth, but to put your real energy into Morby/Stack method deals, where we have found better and more frequent paydays. Questions on how any of this works? Ask below. This is what the community is for. 👇