Have you been a gap lender?

[Yashar E.]

Have you had success with Gap Funding before? What made you decide to gap lend rather than use that capital as a down payment in your own flip or buy and hold?

I did this before and unfortunately, I was dragged along for almost a year, but then again this was partially due to the borrower and his lack of due diligence (I’ll take blame too for partnering with the individual) but I like to think that the mistakes I had seen wouldn’t take place if the project was under my watch or to the very least the situation would be handled differently.

The properties and deals that I generally see and come across in the South Jersey and Central Jersey areas would need a gap lender that would bring roughly 25 – 45K to the table depending on the area. The payout is usually 15%-22% of the initial GAP investment (although seen others as well). The projects are estimated for 5-6 months turnarounds with teams already in place. 

Your experience?