SoftDeposits reviews purchase agreement to see if it qualifies
Our underwriting team reviews the contract to ensure the escrow language and escrow agent both meet our requirements to write an option contract. From the time you sign the application with the underwriting fee and submit a copy of the Purchase & Sale Agreement, the review and approval process can take as little as 5-7 days, and once approved the option can be structured within 24-48 hours.
SoftDeposits creates LLC that enters agreement with the seller
If the contract meets requirements, SoftDeposits will then form a new Limited Liability and become the signing counterparty of the Purchase & Sale Agreement with the Seller. This structure has no impact on the seller since the signing entity is an LLC, and it does not throughout the entire process.
Simultaneously, we will structure and sell a estate option agreement for the property for a specific fee, giving the buyer the right to our membership interests in the LLC at any time during the due diligence soft period.
Your purchase is completely confidential. SoftDeposits has no interest in interfering in your acquisition and will not discuss the merits of your purchase with anyone outside our company.
Buyer works on financing for due diligence period of 30-90 days
SoftDeposits will then wire 100% of the soft deposit funds to the escrow agent, at which point the due diligence period begins. The buyer now has control of the contract and is able to begin working on debt and equity financing, negotiating from a position of strength.
Extensions can be filed but may not exceed our maximum total of 90 days of due diligence.
interest in LLC
Should you decide not to move forward with the contract, there are no further costs to you. Because we don’t underwrite or engage in due diligence of the subject properties, if you do not exercise the option to buy we would terminate the contract. SoftDeposits will never buy a property that a client has submitted.
If you do, however, decide to go hard on the contract, this means you have secured your equity and or debt and expect to close on the property. In this case, you will exercise the option by paying an exit fee to SoftDeposits. Your total SoftDeposits fees for the option will never exceed 1% of the property’s purchase price, making this a valuable service for real estate investors of all sizes.