In a US commercial real estate market where earnest money deposits are becoming more important, Duckfund is providing financing solutions that are helping developers, private equity funds, wholesalers, and real estate investors close more deals faster.
Earnest money for commercial real estate is here to stay.
Sellers have embraced it as a way to identify genuine potential buyers. Also, buyers have adapted to using it to gain a competitive advantage. Those who can offer higher earnest money deposits or get them faster can have better chances at closing competitive deals. Furthermore, those who can get consistent access to them can build profitable portfolios in a market filled with opportunities.
Duckfund has responded to this situation by providing an earnest money financing solution for commercial real estate that is accessible, fast, secure, and flexible:
Accessibility: Minimal entry requirements
You don’t need to submit a credit report or provide collateral to qualify for earnest money financing with Duckfund.
Similarly, Duckfund supports different CRE sectors, including office buildings, retail spaces, multifamily, mixed-use, hospitality, healthcare facilities, and industrial properties, among others. It also caters to newer sectors like data centers.
Duckfund is accessible in all US states except California, Hawaii, Utah, and Vermont. It supports developers, wholesalers, investors, and private equity funds involved in ground-up development, pre-development, value-add, and redevelopment projects.
Quick access to needed funds
Since they have minimal entry requirements, the application process is very fast: it can be completed in two minutes.
Once you have completed an application, you will get a response within 24 hours, and, if successful, the earnest money will be deposited with an escrow in another 24 hours. That is, earnest money reaches the escrow within 48 hours of the application date.
This quick access to earnest money can provide an advantage in competitive markets where time is of the essence.
Secure access to needed funds
If your application is successful, Duckfund will create an LLC on your behalf. It is this LLC that will sign the purchase agreement and transfer funds to the escrow.
You will also sign a call option agreement, which gives you the right but not the obligation to purchase a 100% stake in the LLC. After this, you will pay an upfront financing fee of 2% of the deposit size per 30 days.