Usha Investment Group LLC

Building world class communities

How Earnestly is Revolutionizing Real Estate Investing

Are you interested in real estate investments but find it challenging to secure contracts due to liquidity issues? Then you’re in luck because in this episode of MultiFamily AP 360, I interview Zalman, the founder and CEO of Earnestly.

Zalman shares his background and the story behind starting Earnestly, a company that funds earnest money deposits for real estate investors. He explains how Earnestly is useful for emerging sponsors, syndicators, and small to mid-size firms that are investing in real estate between $5 to $30 million.

Zalman also discusses the fee structure of Earnestly, which is based on a three-tier structure depending on the duration of the due diligence period. He explains that the overall cost for their capital is around 8%, and they have two specified fees: a disbursement fee paid upfront for earnestly to disperse monies into SRA and an exercise fee on the backend.

Zalman also talks about the risks involved and how Earnestly sources its funds from a single-family office and a network of high net individuals interested in working together with them.

When asked about the impact of the current market situation on Earnestly’s side of the stock, Zalman believes that the market is softening, and sellers are not requiring hard deposits on day one. He thinks that it’s time for sellers to get real with valuations and that prices will begin to simmer down.

Zalman invites additional sponsors to provide feedback on the Earnestly model and is looking forward to a great 2023. Listeners and clients can reach out to Zalman via the Earnestly website, where they can also watch an explainer video.

So, if you’re interested in learning more about Earnestly and how it can help you secure contracts for your real estate investments, Tune in nowthis episode of Multi-Family AP 360 !

For more insight to such conversations, subscribe to Multifamily AP360 podcast