Internal Operations Playbook

EMD Deal Playbook

The complete 45-day earnest money deposit cycle with decision windows, recovery protocol, and role assignments. Built on PDCA methodology and Six Sigma risk management. This is a working operational tool, not a summary.

Critical Concept: You Are NOT Loaning Money

You are holding earnest money in a title company trust account. The EMD secures a property under contract. Your job is to manage the money through closing or recovery.

✓ If deal closes: EMD released to seller automatically. You collect your placement fee. Done.

↻ If deal fails BEFORE closing date: Call title company, EMD returned to you in 3-5 days.

✗ If deal fails AFTER closing date without calling: EMD stuck in limbo. Months of hassle. Unacceptable.

Your single most important job: make sure the title company call happens BEFORE the closing date if the deal is failing.

EMD Funding Workflow (13 Steps)

Intake — Deal details received (address, price, parties). Deal ID created.

Acquisitions

↓

Approval — Finance/Underwriting reviews deal, issues written approval.

GATE 1

↓

Document Collection — Mutual release (wholesaler version) + EMD contract. Both signed.

Ops

↓

Title Company Intro — Contact title co, provide deal details, confirm receipt of docs.

Ops

↓

Title Vetting — Title report reviewed. Chain of title verified. Must be 100% clear.

GATE 2

↓

Wire Instructions — Collect from title co. Verify ABA, account, amount. Confirm with disbursement.

GATE 3

↓

Funding Execution — Prepare wire, execute ACH/wire, obtain receipt.

Finance

↓

Timeline Tracking — Inspection end, escrow close, contract effective dates. Set reminders (email + Telegram).

Ops

↓

Weekly Communications — Status updates to parties. Document checklist. Flag blockers.

Ops

↓

Deal Completion — All conditions met. Release EMD to closer/title.

Ops

↓

HUD Review — Collect HUD-1/Settlement Statement. Verify disbursements. Confirm EMD applied.

Finance

↓

Payment Confirmation — Funds confirmed by title co. Archive deal file. Notify all parties.

Finance

↓

Archive & Close — All docs archived. Deal marked closed in Pipedrive. Profit logged.

CLOSED

3 Gate Controls: Gate 1 = Written approval from Finance. Gate 2 = 100% clear title (no liens, judgments, encumbrances). Gate 3 = Wire instructions verified by phone before execution.

45-Day EMD Cycle — Day-by-Day

Day 1 — EMD Deposit & Setup 2-3 Hours Owner: Closer

Goal: Get EMD into title company, set closing date, establish tracking.

Morning (8-10 AM) — Pre-Close Verification

Verify buyer has signed purchase agreement
Confirm EMD amount (typical: $15,000)
Get title company name, address, contact (name, phone, email)
Get scheduled closing date + calculate days until closing
Confirm purchase agreement language (EMD amount, who holds, when released)
Prepare wire transfer details — do NOT wire yet, wait for Manager approval

Afternoon (12-2 PM) — Manager Approval + Execute

Manager reviews deal in Pipedrive
Manager verifies: EMD amount, closing date realistic, title co verified, purchase agreement real
Manager approves: "Good to wire"
Execute wire — save confirmation number
Upload wire confirmation to Pipedrive deal

Create Deal in Pipedrive

New Deal: "[EMD] $15K — {property_address}"
Fill fields: amount, property address, buyer name, closing date, title company info
Set reminder for Day 30 ("Check closing status")

End of Day — Monitoring Setup

Set closing date countdown in Pipedrive deal
Post to Telegram #emd-tracking channel
Document title company contact in deal custom fields

Day 1 Success = EMD in title company, closing date set, monitoring active, Pipedrive deal created.

Days 2-29 — Normal Progression 15 min/day Owner: Closer

Goal: Deal proceeds normally (inspection, appraisal, underwriting, clear to close).

Daily Standup (5 min)

Is deal on track? Any issues (inspection, appraisal, underwriting, title)?
Update Pipedrive deal status: "On Track"

Every 3-4 Days — Status Call (10 min)

Call buyer's agent: "How are we looking for closing?"
Check: Inspection done? Appraisal done? Clear to close received? Any issues?
If At Risk → Escalate to Manager immediately

Days 2-29 Success = Deal progresses normally, status tracked in Pipedrive.

Days 30-35 — Decision Window Opens YELLOW ALERT Owner: Closer + Manager

Goal: Clarify — is closing happening or not? 30 minutes, one critical call.

Telegram Alert: "#emd-tracking: {deal_name} — 15 days to closing, status?"

Day 30 Status Call

Call buyer's agent: "Are we closing on {closing_date}?"
YES, on track → Proceed normally, re-check at Day 38
UNCLEAR → "When will you know? Call me by Day 35."
NO, falling through → ESCALATE TO MANAGER IMMEDIATELY

If Deal Falling Through (Day 30-35)

Manager decision call (30 min): Reason for failure? Any chance it closes? Timeline?
Manager decides: Give until Day 38 to resolve, or accept failure and prepare recovery
Update Pipedrive: "At Risk — Likely to Fall Through" + reason + expected resolution

Days 30-35 Success = Status clarified, no surprises. Manager informed.

Days 38-43 — Critical Window RED ALERT Owner: Manager + Admin

Goal: Final decision. Execute title company call if needed. Must act before Day 44.

Telegram Alert (RED): "#emd-risk: {deal_name} — 7 DAYS TO CLOSING — Status unknown? ESCALATE."

Day 38-40: Final Status Determination

Deal IS Closing

Clear to close received
All contingencies removed
Closing scheduled
No title company call needed
Update Pipedrive: "On Track to Close"
Monitor for closing confirmation (Day 44-45)

Deal is NOT Closing

Buyer backed out / inspection failed / appraisal low / financing denied
Update Pipedrive: "Deal Failed — Recovery in Progress"
MUST CALL TITLE COMPANY TODAY OR TOMORROW

Title Company Recovery Call Script (Days 38-42)

"Hi {contact_name}, this is {your_name} with Vizion Capital. We have a deal for {property_address} with a scheduled closing of {closing_date}. Unfortunately, the deal has fallen through [reason: inspection failed / appraisal low / buyer backed out / financing denied]. The closing will not happen. We need to request the earnest money deposit of $15,000 be released and returned to our trust account at {bank_name}. Can you process that release for us today? What is the next step and timeline?"

Document: call time, title co contact, release authorized (Y/N), return account verified, expected timing
Request email confirmation from title company
Upload call notes + confirmation email to Pipedrive deal
Post to Telegram: "Title company called — EMD release authorized — Expected return: {date}"

Day 42-43: Verification

If no email received: Call title company again
Verify: "Release is processing? When should we expect the funds?"
Get expected deposit date

Days 38-43 Success = If deal failed, title company called BEFORE closing date. Recovery in motion.

Days 44-45 — Closing Date DEADLINE Owner: Admin

Deal Closing (Normal)

Monitor for closing confirmation
Title co releases EMD to seller automatically
Update Pipedrive: "Deal Closed — EMD Released"
Log profit: $250-300 placement fee

Deal Failed (We Called)

Recovery in progress (title co processing)
Wait for bank deposit (1-3 days)
Update Pipedrive: "Recovery in progress, expected {date}"

Days 46-50 — Recovery Confirmation VERIFY Owner: Admin

Goal: Verify EMD received in bank account (if deal failed).

Check bank account for $15K deposit from title company
Screenshot deposit — save to Pipedrive deal
Update Pipedrive: Deal stage "Recovered", recovery date, amount $15K, status "Complete"
Log in metrics spreadsheet: deal closed/failed, EMD amount, fees collected, profit, recovery time
Post to Telegram: "EMD RECOVERED — {address} — $15K — Recovery time: {X} days"

Days 46-50 Success = EMD recovered, money back in account, profit recorded. Cycle complete.

Timeline Summary — Quick Reference

Day	Phase	Owner	Key Action	Alert Level
1	EMD Deposit	Closer	Wire EMD, set closing date, create Pipedrive deal	GO
2-29	Normal Progression	Closer	Track status, call agent every 3-4 days	NORMAL
30	Decision Window	Closer + Manager	Status clarification call	YELLOW
30-35	Assessment	Manager	Assess risk, decide: proceed or prepare recovery	YELLOW
38-43	Critical Window	Manager + Admin	Final decision. If failing: CALL TITLE COMPANY	RED
44-45	Closing Date	Admin	Monitor closing or confirm recovery underway	DEADLINE
46-50	Recovery Confirmation	Admin	Verify bank deposit, log profit	VERIFY

Decision Tree: Is Deal Closing or Failing?

▶

Used at Day 30 (first check) and Day 38 (final check).

ON TRACK

Inspection passed
Appraisal good
Clear to close received (or soon)
No title/financing issues
Both parties committed

Action: PROCEED NORMALLY

AT RISK

Appraisal came in low
Inspection found issues
Clear to close delayed past Day 35
Financing delayed
Buyer or seller hesitant

Action: ESCALATE TO MANAGER

FAILING

Buyer backed out (in writing)
Appraisal way too low
Deal-breaker inspection issues
Financing denied
One party walked away

Action: CALL TITLE CO (Days 40-42)

Decision Tree: When to Call Title Company

▶

Used Days 40-42 (critical window).

Q1: Is the closing happening?

YES → Don't call. Deal proceeds. Title co releases EMD automatically at closing.

NO → Go to Q2. Deal will NOT close.

Q2: Is closing date still 2+ days away?

YES → Call title company TODAY or TOMORROW. "Release the EMD, deal fell through." Timing: Days 40-42.

NO (already passed) → Call IMMEDIATELY. Risk: CRITICAL. They may push back — escalate to Manager.

Q3: Does purchase agreement authorize release?

YES → Title co will release readily. Expect 3-5 days.

NO / UNCLEAR → Manager negotiates with title co. May take 5-10 days or require lawyer.

Bottom line: Deal Failing + Days < 43 + Title co has authority = CALL NOW (3-5 day recovery). Deal Failing + Days > 43 + No authority = CALL LAWYER (months + legal fees). Deal Failing + No call + Days > 45 = DISASTER (EMD stuck indefinitely).

Roles & Approval Matrix

▶

👑

Manager (Kevin M.)

Strategic oversight, final decisions, P&L accountability

Approve EMD deposits. Authorize title company calls. Handle disputes and escalations. Negotiate extensions. Daily: 5-10 min (check Telegram #emd-risk). Weekly: 30 min (Friday risk review). Monthly: 1 hr (portfolio review).

Day 30: Assess risk Day 38: Final call Day 40-42: Authorize recovery

💼

Closer

Deal sourcing, due diligence, status updates

Find and qualify EMD deals. Deposit EMD (Day 1). Track deal progress. Call buyer's agent (Days 30, 38). NOT authorized to call title company. Reports deal status to Manager. Time: 15-20 hrs per deal over 45 days.

Day 1: Deposit Days 2-29: Track Day 30, 38: Status calls

📄

Admin / Finance

Wire execution, title company coordination, recovery verification

Execute wire transfers. Call title company if deal fails (ONLY with Manager approval). Document all communications. Verify EMD recovery in bank. Update Pipedrive. Log metrics. Time: 10-15 hrs per deal over 50 days.

Day 1: Wire Day 40-42: Title co call Day 46-50: Verify recovery

Approval Matrix

Decision	Closer	Admin	Manager
Approve EMD deposit (yes/no)	—	—	Approves
Set closing date	Owns	—	—
Update deal status	Owns	—	—
Call buyer's agent	Owns	—	—
Call title company	—	—	Approves
Negotiate with title company	—	—	Owns
Escalate to lawyer	—	—	Approves

Escalation Procedures

▶

Escalation 1: Deal Status Unknown at Day 30

Can't reach buyer's agent or get clear status. Closer documents attempts, escalates to Manager. Manager gives deal until Day 35 to resolve, or flags as "At Risk" and prepares for recovery. Must have clarity by Day 35.

Escalation 2: Title Company Won't Release EMD

We call on Day 41, they say "can't release." Admin documents reason, escalates to Manager immediately. Manager calls title co directly: "Purchase agreement says release on deal failure. We're calling before deadline." If refused: escalate to supervisor, threaten regulatory report. If still refused: lawyer. Must resolve within 24 hours (before Day 44).

Prevention: When deal is set up, verify IN WRITING that title co will release if deal fails.

Escalation 3: EMD Not Received After 7 Days

Called title co on Day 41, they said "3-5 days", but Day 48 arrives with no deposit. Admin calls: "Where's our $15K?" If "still processing" get specific date. If "lost in system" escalate to supervisor. If "you never told us" provide documentation. Manager calls and demands status if unresolved. Resolve within 2-3 days or escalate further. Lawyer as last resort.

Prevention: Always get EMAIL confirmation from title company. Do not rely on phone calls alone.

Communication Protocols

▶

Internal Team (Telegram)

Priority	Channel	Response Time	Example
Urgent	DM to Manager	<1 hour	"Deal failing, should I call title company?"
Time-sensitive	#emd-risk	By EOD	"Day 38: {deal} — need Manager decision"
Status update	Pipedrive deal note	Within 24 hrs	"Buyer's agent confirmed on track"
Day 38+ decision	Call Manager directly	Immediate	Don't wait for Telegram if time is critical

External (Title Company)

When	Method	Purpose
Day 1 (EMD deposited)	Email	Introduce yourself, confirm EMD, confirm closing date, get contact info
Days 5, 15, 25	Optional call/email	"Still on track?" Keep relationship warm
Days 40-42 (if failing)	Phone call + email follow-up	Request EMD release. Get written confirmation.
Days 46+ (if recovering)	Phone + email	Check release status. Verify receiving account.

Telegram Alert Schedule

Trigger	Channel	Message
Day 30	#emd-tracking	"Status check" — 15 days to closing
Day 38	#emd-risk	"7 days to closing" — CRITICAL alert
Day 44	#emd-risk	"Closing date is today" alert
Day 45+	#emd-risk	"OVERDUE — Call title company NOW" — CRITICAL

Manager Daily Check (5 min)

Open Telegram #emd-risk
Any RED deals? (Action needed today)
Any YELLOW deals? (Status call needed)
All GREEN deals? (Proceed normally)

What Happens If You Miss the Deadline

Day 44

Closing date passes. Deal is dead. No title company call was made.

Day 45

You realize the call was missed. You call title company.

Day 45

Title co: "Sorry, closing date passed. We need to hold this per the purchase agreement."

Day 46+

Weeks of phone calls, emails, threats.

Day 60+

Possible legal action needed. Legal fees mounting.

Day 90+

EMD still stuck. Finally recovered after months + legal costs.

A 5-day recovery becomes a 3-month nightmare. This is why the Day 38-42 title company call is non-negotiable.

7 Non-Negotiable Rules

1. Every EMD deal MUST have a Scheduled Closing Date set on Day 1.

2. Status must be clarified by Day 30 (on track or at risk).

3. If deal failing: title company call MUST happen Days 38-42 (before closing date).

4. Do NOT wait until closing date to call title company.

5. Document all title company calls (email confirmation required).

6. Verify bank deposit with screenshot + date.

7. Log recovery in Pipedrive + metrics tracker. Every deal. No exceptions.

Failure to follow = EMD stuck in title system = months of problems = unacceptable.

Success Metrics

Per Deal

EMD deposited on Day 1
Closing date set on Day 1
Status checked by Day 30
If failing: title co called by Day 42
If closed: automatic release (done)
If failed: EMD recovered within 3-5 days
Profit logged: $250-300 placement fee

Per Month

4-6

EMD Deals

100%

Recovery Rate

3-5d

Avg Recovery Time

$1-1.5K

Net Profit/Month

Target: 0 EMDs stuck in title system. 0 missed deadline calls.

Title Company Contact Database Template (Pipedrive)

▶

Store this info for every title company you work with as an Organization in Pipedrive:

Title Company: ___________ Address: ___________ Phone (main): ___________ Primary Contact: Name, phone, email Backup Contact: Name, phone, email Account Manager: Name, phone, email EMD Release Policy: Will release if deal fails? Yes / No Requires: ___________ Typical timeline: ___ days Issues encountered: ___________ Past Dealings: [List deals with this title co] Problems? How resolved?

Monthly EMD Operations Review (Last Friday, 2 PM, 1 Hour)

▶

Review Checklist

Total EMDs in portfolio this month: ___
EMDs that closed: ___
EMDs that failed: ___
EMDs recovered: ___ (should be 100%)
Average recovery time (if failed): ___ days
Total profit: ___
EMDs stuck in title system: ___ (should be 0)

Analysis

Any pattern in failures? (inspection? appraisal? financing?)
Any title company issues? (slow? uncooperative?)
Average cycle length: ___ days
Profit margins: ___ per deal
Team performance: Closer? Admin?

PDCA Improvements

What can we do better next month? (Plan)
What process changes are needed? (Do)
What metrics moved? (Check)
What are we locking in as standard? (Act)