Gap Financing For Real Estate Investors
Are you looking for an experienced and flexible partner to help fund your real estate deals?
Efundingexperts is your Gap Financing solution. We all know that every entrepreneur is different. Every real estate business is unique, and every deal requires an appropriate approach. This is exactly why we don’t offer a one size fits all solution. Instead, we want to give you a variety of real estate investment loan options that you can choose from. We offer multiple types of funds and real estate investment loans, which works best for you and your business.
When it comes to gap financing, refers to a form of financial loan. which covers time, funding, or negotiation gaps. It also known as Bridge Loan. This loan is used to finance the difference between the floor loan and the maximum permanent loan as committed.
What is Gap Financing or Funding?
Gap financing is a short-term loan that helps people meet immediate financial obligations until they can arrange sufficient funds to finance long-term financial needs. Gap funding for real estate investors closes the remaining gap between a hard money lender covering and the cost of the investment project.
How Does Gap Financing Work?
Funding gaps are a common occurrence among very young firms. Those may underestimate the amount of capital required to maintain production until a viable cash flow is established. That’s why bank loan is the best solution. Investors or equity sales of funds needed to start operations and currently accessible funds can help bridge the gap.
Gap Financing provides short-term loans, which is usually repayable within six months or one year. It has high interest rates and high risk for lenders. This process will be applicable for someone who currently needs a lot of cash or will be needed in the future.