SPRHo Solutions is a bespoke Strategic Capital Acquisition Group
We empower investors through fast, reliable, uniquely tailored funding solutions.
Transactional Funding Solutions
Ernest Money Deposit ‘EMD’
An Earnest Money Deposit (EMD) is an upfront good-faith payment made by a buyer in a real estate transaction to demonstrate their serious intent to purchase the property. Typically, the deposit is submitted when the purchase agreement is signed and is held in an escrow account until closing. The EMD reassures the seller that the buyer is committed to the transaction, as it provides financial security in case the buyer backs out without a valid contractual reason. In most cases, the deposit is applied toward the purchase price or closing costs. However, if the buyer fails to fulfill their contractual obligations, the seller may be entitled to keep the EMD as compensation for the failed transaction. The required amount for an EMD varies based on market conditions, seller preferences, and contract terms, making it an essential component of real estate deals.
Morby Method
The Morby Method, pioneered and popularized by real estate investor Pace Morby, is an innovative financing strategy that allows buyers to acquire properties without relying on their own capital or traditional bank loans. This approach leverages a combination of seller financing—where the seller agrees to receive payments over time instead of a lump sum at closing—and private or hard money lending to bridge any remaining funding gaps. By utilizing this method, investors can structure deals that minimize upfront costs while maximizing cash flow opportunities, making it a powerful tool for those looking to scale their real estate portfolios without the conventional barriers of credit checks, income verification, or large down payments.
Double-Close Money
Double-close money is a form of short-term financing used in wholesale real estate transactions to facilitate a double closing, a strategy where two consecutive real estate transactions occur on the same property—one between the seller and the wholesaler, and another between the wholesaler and the end buyer. This funding is essential in cases where the wholesaler does not have the capital to purchase the property outright before reselling it. By utilizing double-close money, wholesalers can maintain financial privacy, as the purchase price in the first transaction remains undisclosed to the end buyer in the second transaction. This approach allows wholesalers to maximize profits while ensuring a smooth transfer of ownership without relying on assignment contracts.
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