As part of our mission to build the one-click checkout for real estate transactions, we’re proud to showcase Spruce’s digital earnest money solution. Spruce’s platform allows single family real estate (SFR) investors to automate earnest money deposits, which increases efficiency and lowers overall closing costs.
After making an offer on a property, a buyer will often send an earnest money or “good faith” deposit to the seller. It shows that an investor is serious about the transaction and intends to move forward, subject to clearing property inspection and other due diligence.
In most situations, a title company will call or email an SFR investor to let them know the earnest money is due. Traditional title companies will only accept wire transfer or certified checks, which are frictional for investors who buy at scale and become quite costly over large portfolios. Wire fraud in real estate is also one of the fastest growing cybercrimes, and communicating about money movement via email and phone can make investors particularly vulnerable.
If you’re an institutional real estate investor or anyone buying multiple properties a month, you can fully automate the earnest money deposit process with Spruce. After a one time account setup with our team, whenever we receive a new purchase contract, we’ll automatically debit the amount needed. Automating this process increases efficiency on every transaction and gives you more time to focus on growing your business.
Best yet, utilizing Spruce’s earnest money deposit process fully eliminates wire costs, helping to reduce overall closing costs on your transactions.
Sound interesting? Schedule a demo with our team to learn more.
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