What is a soft deposit
When a buyer signs a purchase contract, they fund a deposit, which is held in escrow and credited against the purchase price at closing.
Most purchase contracts designate a period of time where the buyer can cancel the contract and refund the deposit.
These are called soft deposits.
AdvanceDeposit funds soft deposits
By closing, a buyer will have debt and equity secured to fund its purchase.
But at contract signing, many buyers don't have the available liquidity to fund the soft deposit.
AdvanceDeposit solves this problem by lending buyers the deposit upon contract signing.
Purchase price
$10,000,000
Prepaid interest
$10,000 (1% per month, 2 months)
Soft deposit
$500,000 (5% of price)
Loan amount
$500,000
Refundable period
60 days
Example Transaction
Contract Review
AdvanceDeposit confirms your contract deposit is soft during the designated diligence period.
01.
Funding
AdvanceDeposit funds the entire contract deposit. Borrower prepays interest + legal/processing expenses.
03.
Loan Document
AdvanceDeposit generates a loan document at 1% interest per month and a term expiring at the end of the diligence period.
02.
Our Seamless Process
Get funded in under 3 business days
Not only real estate
AdvanceDeposit will fund soft deposits in connection with any qualifying purchase contract.
Some examples include:
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An operating business
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A factory
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Inventory
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Residential property