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.
If you choose to proceed with the deal, you will exercise the call option and repay the earnest money deposit.
However, you don’t have to do anything if you don’t desire to proceed with the deal. Duckfund will get a refund from the escrow, and the purchase agreement will be terminated. This system ensures that the only thing you can lose if you back out of a deal is the financing fee.
Flexibility: Gain an advantage in competitive markets
Are you pursuing a deal in a competitive market where you need to offer a higher deposit than what the seller is requesting? Duckfund is flexible enough to support you. Their minimum funding amount is $50,000, but there is no maximum amount.
Do you need to pursue many interesting and profitable deals simultaneously? Duckfund will provide an earnest money deposit for all of the deals.
Duckfund also provides special terms for developers: a lower financing fee in the feasibility due diligence phase (second phase).
Join the list of investors and developers winning with Duckfund
Since its inception in 2023, Duckfund has helped many investors and developers across the US close more deals through its earnest money financing.
A New York-based Private Equity (PE) firm has raised $440,000 across seven deals over a period of ten months. Another one in Washington DC raised $1,000,000 for a 30-day soft deposit term, while the one in Texas raised $950,000 for a 45-day soft deposit term. Other PE firms in Atlanta, Georgia, Maryland, amongst others, also have success stories to tell.
Non-PE real estate investors in Connecticut and Texas, among others, have also accessed funding with Duckfund.
Developers are not left behind. One developer in Florida raised $750,000 for a 90-day term, another one in Atlanta raised $75,000 for a 75-day term, and one in Massachusetts raised $50,000 for a 60-day term.
If you are seeking how to buy commercial property in the US, then you know you can’t do without an earnest money deposit. With Duckfund, getting a quick, accessible, flexible earnest money deposit doesn’t have to be a bother. Complete your application in two minutes, and the money will be ready with the escrow in within 48 hours.