FAQ
Deal Structure
How does Duckfund’s Earnest Money Deposit (EMD) financing structure work?
What happens if I decide not to buy the property?
How should we replace the EMD provided by you?
Why should the Purchase and Sale Agreement (PSA) not be signed before submitting it to Duckfund?
Why does a new LLC need to be registered?
Do I need to assign the PSA to the LLC created by Duckfund?
Will my LLC buy out the LLC created by Duckfund?
Am I required to keep the LLC created by Duckfund in my ownership structure?
Why does the PSA need to be in the name of Duckfund’s LLC?
How do I know Duckfund won’t take the deal after I upload the application and PSA if no agreement is signed yet?
Why do you require a minimum of 30 (or 15) days for the due diligence period?
Can the LLC be transferred to my name after closing?
Does Duckfund stay in the deal after expiration of the due-diligence period?
Who are the members of the LLC that Duckfund creates?
Is the LLC created specifically for my deal?
Can I choose the name and state of the LLC Duckfund registers?
Will the LLC be created in the state where the property is located?
Can I register an LLC in a state where I don’t live?
Can the LLC be dissolved after the deal?
How is the assignment from Duckfund’s LLC to my entity structured?
What if the seller questions why Duckfund is signing the PSA instead of the buyer?
Can clients review the Purchase Facilitation Agreement and Call Option Agreement before committing?
What are the tax filing implications of using Duckfund LLC?
Does the LLC created by Duckfund operate like a normal LLC?
If the client has already signed the PSA and placed the money into escrow, can the PSA be assigned to Duckfund’s LLC and the funds replaced?
When it comes to termination, does Duckfund have to send a letter to the seller?
Process & Timeline
What does the application process look like?
Which documents are required to apply for Earnest Money Deposit Financing?
How long does it take to get approved?
Is there a background check performed on the clients?
Who needs to complete the identity verification process?
What is identity verification?
What information is required in the application?
How long does it take to receive funding? How quickly can you fund after I submit documents?
What is Duckfund’s average hold period for EMD financing?
Do I need to confirm the term length before paying the fees?
What’s the latest I can apply before the EMD is due?
What if the PSA has already been signed between the buyer and the seller — can I still apply?
What is an Earnest Money Deposit (EMD)?
Does Duckfund have to wait until the LLC is approved by the state before signing the PSA and transferring the EMD?
Is the deposit placed in an interest-bearing account? Who keeps the interest accrued?
If a client decides not to purchase the property, can they assign their interest in buying the shares of the LLC to another party?
Can you help us with the PSA?
What is Duckfund’s role in the closing process?
Eligibility & Requirements
What companies does Duckfund accept to hold escrow?
What are the requirements to finance an EMD with Duckfund?
What is the minimum and maximum Earnest Money Deposit that Duckfund can finance?
What does “sole order” escrow mean?
Do you do a credit check on the buyer?
What kind of collateral does Duckfund require?
Does Duckfund need any financial records for the personal guarantee?
When working with multiple partners, should all partners be required to sign the personal guarantees?
Can I qualify if I’m using a new LLC without a track record?
Do I need to have a signed PSA before I apply?
Is a background check or KYC required?
Can I work on multiple deals at the same time with Duckfund?
We sometimes have short due diligence periods (10–15 days). Can you still finance our EMDs in this case?
Why don’t you work in CA, HI, UT, and VT?
Pricing & Fees
What are the fees involved? / What is the interest rate you charge?
What happens if the deal closes or is terminated early? Are fees refunded?
How much does it cost to use Duckfund’s service for 30 days?
Are there any setup fees or other costs I should be aware of?
Can the financing be extended if we need more time for due diligence? Are there additional fees for extensions?
Can the Earnest Money Deposit period be extended?
Is the cost of the deposit paid up front or at the end of the term?
Are there any penalties for early repayment or cancellation?
General Product Understanding
What exactly does Duckfund do?
What is a soft deposit?
What is the difference between an Earnest Money Deposit (EMD) and a Downpayment?
Where does Duckfund make money?
Do you only finance earnest money deposits, or do you offer other products?
Are there other companies offering something similar?
Do you replace hard money lenders?
How is this different from getting a bridge loan or personal loan?
Is Duckfund a lender or an investor?
Why does Duckfund’s EMD financing add value?
Who is Duckfund’s EMD financing best suited for?
Partnership Program
Do you work with brokers or only directly with buyers?
What types of partners do you work with?
How can I apply to start working with you as a partner?
What is the process of becoming a partner?
What is the process of referring clients to Duckfund?
Do clients referred by partners get the same pricing as direct clients?
How does Duckfund prevent clients from bypassing referral partners?
What is the motivation for partners?
Do you pay for all referred deals?
What materials will I be given to share with my network?
Can a partner work with Duckfund using white-labeled materials?
Does the partner receive a commission even if the deal falls through after PSA signing?
Does the partnership program go both ways?
About the Company
What is Duckfund?
Where does Duckfund’s capital come from?
Where can I find case studies about Duckfund’s services?
Where are you based?
How long have you been in the market?