Gap funding experience?

Question

Can anyone tell me about any experience they have had with gap funding. How did it go? How expensive was it ? At the end was it a good decision? Is there any gap funding entity that someone can recommend that they have worked with that Is legitimate?
thank you

AJ Exner · Answer

Hey Dale,

So the best way to find some GAP funding is to look for private investors either in your area or that you know that would help. They are inherently riskier loans so it takes a baseline level of trust, or legal protections, to ensure that the Gap lender in question is protected because being in subordinate position on title means that if it gets sold for less (via bankruptcy or any number of proceedings), you are more likely to lose your money.

You also need to make sure that your primary mortgage holder on the deal is okay with there being a Gap funder. If you end up moving in that direction and putting all the dominos in place, the last thing you want is to get towards the end and have the deal denied because of that.

Unfortunately, most GAP funders keep regional to markets and people that they know and they keep them close to the chest. My recommendation would be to start finding deals and working local REI meetups to see who you can run into.

Good luck!