Locating Gap Funders?

[Yonathan Cabrera]

Hi there, name’s Yonathan (per my profile…) 

I am trying to gain insight on the best strategies to pinpointing investors/lenders that are able to do secure gap funds. 

I have a GC friend in PA trying to request 196k, as a "gap" to supplement whatever the HML cannot cover. 20% ROI, 6 months.
It is secured with
 👇

Controlled Interest: We include our investors as a 51% controlling interest member on the borrower’s operating agreement. This gives them significant control and security.

Joint Venture Agreement with Personal Guarantee: We establish a Joint Venture (JV) agreement that includes a personal guarantee, providing an additional layer of security for our investors.

Memorandum Filing: We file a memorandum in the county where the property is located. This ensures that when the borrower exits, the title company is aware of the JV agreement, further protecting the investor's interests.

I’m just blown away at how hard it is to find people to do this since it quite honestly is a solid deal with the ins-and-outs planned out already. 

Tips? 

[Jay Hinrichs]

very easy to answer this..  Gap funding or junior position funding is highly risky.

your team has no real money in the deal.. PG's are worthless those that have PGs that are worth anything dont need gap funding they have the cash.

this is a play for folks you know well .. not for internet facebook BP etc.. people that do this do it because they know you like you trust you and think your a good operator.

Public has to many other choices that are much safer bet.. its not always about ROI with those with money.. And I can tell you u there will be some that read 20% and all that does to them is scream risk.