A soft deposit also known as a “good faith deposit” or “earnest money deposit” is paid by buyer to show seller that buyer is serious about purchasing the property.
A soft deposit is fully refundable should buyer elect to terminate the contract at the end of the due diligence or option period.
The soft deposit is typically held by buyer’s attorney in a trust account.
Buyer’s liquid capital is not available at time of signing the purchase agreement.
For less than 1% of sales price, buyer is able to obtain the right to purchase property.
Buyer has not obtained a loan commitment from the funding lender.
Buyer understands the advantages of leverage financing thru a soft deposit loan.
Brickell Capital reviews the purchase agreement and if the agreement qualifies, a new single purpose LLC is created.
We sign an agreement with seller and soft deposit is funded. Buyer purchases an option contract from us and uses due diligence period to secure debt and equity financing.
If buyer wants to purchase the property, buyer purchases our interest, and if buyer does not want to move forward, the option contract expires automatically.