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 followI'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…
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…
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…
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…
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…
Reading a subordination agreement a senior sent over for a gap piece and two clauses are doing a lot of work. One: the senior may deliver a payment blockage notice on any default…