Bridge Capital for Earnest Money Deposits
Bridge Capital for Earnest Money Deposits: What Real Estate Sponsors Actually Use
Earnest money is non-negotiable. If you’ve got a signed LOI and a seller waiting for funds, waiting 3 weeks on your lender is a non-starter. In 2025, serious real estate sponsors use bridge capital to cover that short-term gap—without pulling their own cash. Here’s how it works, what it costs, and how to get the money in under 10 days.
What Is Bridge Capital for Real Estate Closings?
Bridge capital for real estate closing covers short-term funding needs like earnest money deposits, escrowed guarantees, or non-refundable down payments tied to a closing date. The capital is typically secured by either a future equity interest, a note, or a reimbursement agreement backed by proceeds from the primary transaction.
If the deal moves forward, the bridge gets repaid at close. If it doesn’t, the capital provider either converts to equity, recovers from escrow, or executes rights outlined in the agreement.
What Sponsors Actually Use
Most sponsors don’t post the cash themselves. They use short-term capital structures such as:
— Unsecured investor notes with fixed fees and clawback protection — Escrow-secured capital backed by deposit refund rights — Equity kicker notes that convert at close — Assignment of proceeds agreements tied to final funding stack
None of these require institutional approvals. If the file checks out, serious providers can deploy within a week.
How to Make Your Deal Fundable
Bridge capital providers want clarity and speed. They need to see the signed LOI or PSA, proof of funds for the remainder of the raise, and a clear path to exit. If your deal is still speculative or you can’t show who’s funding the rest, it won’t get approved.
Packaging matters. Financely underwrites these deals internally and presents them directly to groups that fund real estate gap capital. You’ll need to show the capital stack, your sponsor resume, and a use-of-funds summary. No fluff, no pitch decks. Just the deal.
Need Earnest Money for a Real Estate Closing?
We underwrite the file and get it placed in under 10 days with real capital providers.
Submit a Deal Book a CallHow Long Does It Take?
Standard timeline is 5–10 business days. The faster you provide documents, the faster we move. Some deals close in under a week if the seller is responsive and escrow is ready to receive. Expect fees between 2%–5% depending on structure, or an equity piece if the deal is high-margin and timing is tight.
The Bottom Line
If you’ve got a real estate deal worth fighting for, don’t lose it over a deposit you can’t tie up. Financely helps sponsors secure bridge capital fast—without risking personal liquidity or chasing brokers. If the deal is real, we’ll get it funded.
Get Started With Us
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