Gap funding, often overlapping with bridge lending, provides the capital that fills the space between what a primary (senior) loan covers and the total funds a deal requires, frequently the down payment, renovation reserve, or the difference between purchase-plus-rehab cost and a hard money...
Log in to followAn operator I've done business with before wants 65k behind a 480k senior on a 7 unit. Three units are offline, plan is to finish them, season the rents about four months, and ref…
Closing a 3/1 in a working class suburb next week. Purchase 168k, rehab budget 52k, ARV I'm underwriting at 285k. My hard money lender does 85% of purchase and 100% of rehab, but…
I'm partway through getting my salesperson license and a contractor I know needs $55k for a rehab reserve on a duplex he's buying. His lender is covering purchase and some of the…
I've been reading gap deals for a few months without funding one, and the two lenders I've talked to sort the world in opposite ways. The first one underwrites the collateral almo…
Nothing to show for this one, which is why I'm posting it. I had a 2 bed cottage in a older part of town under contract at 142k, rehab I scoped at 46k, comps supporting 245k to 25…
I've got a set amount I'm willing to put into private lending this year and I keep going back and forth on which seat teaches me more. Option one is small gap pieces behind other…
The part that worried me was getting paid, not the rate. Small three bedroom flip in a working class suburb, all in at 218k purchase plus rehab, hard money senior funded 175k, bor…
Not a big story but the mechanics are the kind of thing I wanted explained when I started, so here it is. I had a 4 unit under contract at 340k in a modest neighborhood, all four…
I've been reading a gap funding term sheet that a lender publishes as an example, and two lines on the same page seem to point in different directions. One says the loan is secure…
Deal in front of me: $420k purchase, $180k rehab budget, senior hard money at $480k funded in draws, and I'd be putting in $120k as a recorded second. ARV pencils around $780k, bo…
Small position, 50k, but it's the first one I did where the paper worked the way I wanted, so I'm writing it down. Deal was a single family flip in a first ring suburb, purchase 1…
Underwriting a 12-month bridge with a 6-month extension option at one point. Sponsor's exit is a DSCR refinance on a stabilized 8-unit, and their pro forma has certificates of occ…
Borrower is doing a heavy rehab on a 12 unit in a secondary market. Purchase 640k, budget 210k, senior bridge loan 700k from a private lender, stabilized value the borrower puts a…
Numbers first, then the part I can't settle. Purchase 285,000, off market 3/2 in a first ring suburb that turns over fast. Rehab 95,000 from my GC, and I'm confident on maybe 80 o…
A friend is buying a house to flip and his hard money lender is covering 75% of purchase plus rehab. He needs $40,000 more for the down payment and part of the rehab reserve, and…
12-unit value-add. Total cost $2.6M, senior bridge $2.1M, sponsor equity $250k, my gap piece $250k. Projected 18 months to stabilization, exit is a sale with a projected profit ar…
I manage this building. Owner bought it as a value add, 6 units in a decent inner ring suburb, and came up 40k short at closing in 2022. I'd been collecting rent for him for two y…
Bridge and construction has been the fastest growing corner of private credit for a while now, something above 12 percent a year in what I've read, and the demand side makes sense…
Deal is $620k purchase, $180k rehab, so $800k all in. Senior hard money is 75% of total cost, $600k, funded in draws. Sponsor has $100k of his own. My piece is the last $100k, mos…
I have 60,000 that has been sitting in a savings account doing very little and I have spent two months looking at exactly two options. I want the version that works, so I'm puttin…