Bridge the gap between traditional lending and your investment goals. Our Gap Funding can cover down payments, closing costs, and rehab draws so you can close with little to no money out-of-pocket.
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Gap funding is not one-size-fits-all. We take a strategic approach to structure the right solution for your project.
Get your project started immediately. Gap funding can cover the initial construction draw so you can begin rehab without waiting to free up your own capital.
Closing costs can eat into your reserves. Gap funding can cover these costs so you preserve your working capital for the project itself.
Reduce your monthly carrying costs by pre-paying interest reserves upfront. This strategic approach keeps your cash flow clean during the rehab period.
You have the money to close, but you want to use OPM strategically. Gap funding lets you preserve your own capital and scale faster by deploying other people's money on the right deals.
Have equity tied up in rental properties? We can cross-collateralize against your existing rentals to provide the gap funder with additional equity protection and get your next deal funded.
Already closed on a Fix & Flip loan with us? We can arrange gap funding after closing as well. Many clients close their primary loan first and then request gap funding — a common path we support.
If you need gap funding, we need to know from the beginning. Discovering the need for gap funding late in the process can delay your closing. The earlier we know, the better we can structure the deal and coordinate with our network.
We offer multiple creative structuring solutions including preferred equity positions and other protective arrangements for gap funders. Detailed structures and resources are shared after executing our confidentiality agreement. Submit your deal to start the conversation.
Adam Levine is available to assist with deal structuring and guiding you through the gap funding process. This should be discussed at the beginning of your deal so we can plan the right approach from day one.
Gap funding starts with a standard loan. After reviewing your deal, we determine if it qualifies for additional gap funding coverage.
Complete our Quick Quote form with your property details, purchase price, and rehab budget. We provide a term sheet for a standard Fix & Flip or Fix2Rent loan first. We respond within hours, not days.
After reviewing your standard term sheet, our team evaluates whether the deal is a candidate for gap funding. We analyze the combined ARLTV, gap funder returns (typically 15-25%+), multiple exit strategies, and timeline. We also verify that the borrower has the ability to close without gap funding — gap funding is for borrowers who want to use OPM strategically, not those who cannot close without it. This is a slower, more thorough process because we protect our reputation when presenting opportunities to our network of gap funders and connectors.
Gap funders need to be comfortable with the borrower. We require a borrower interview and bio as part of the process. There must be sufficient equity protection and a clear, short-term exit strategy. This is evaluated deal by deal.
Once approved, we coordinate closing through our preferred transaction coordinators and connectors. Close in as few as 3-4 weeks with up to 100% financing and start your rehab immediately with funded draws.
We exclusively provide gap funding in conjunction with our own Fix & Flip loans. We do not offer gap funding behind another lender. Each deal is evaluated individually.
Evaluated on a case-by-case basis. The combined first position loan and gap funding should not exceed 70-75% of the After Repair Loan-to-Value (ARLTV).
Minimum FICO requirement to qualify. We work with both experienced and newer investors on a deal-by-deal basis.
Gap funders typically target 15-25%+ returns on their capital. Shorter durations mean cheaper money. Longer terms can be arranged but cost more. Payment structures — monthly, hybrid, or deferred — are negotiable deal by deal.
Origination starts at 2% and may be higher depending on deal complexity. Gap funding and non-standard products are evaluated individually.
2% to 5% of total gap funds provided. This fee is added on top of the loan amount and paid by the borrower.
Additional collateral may be required when the combined loan-to-value exceeds 75%. Sufficient equity protection is essential.
Gap funding is not a standard loan product. It requires additional due diligence, borrower vetting, and deal-by-deal evaluation.
Every deal starts with a standard Fix & Flip or Fix2Rent term sheet. After our team reviews the deal, we let you know if it could be a candidate for gap funding.
Gap funders need to be comfortable with the borrower. We require a personal interview and borrower bio as part of the vetting process. This is non-negotiable.
There must be sufficient equity protection in the deal. We analyze the combined ARLTV (targeting 70-75% max), multiple recovery strategies, and timeline to ensure the investment is secure.
Every state is different. Gap funding requires additional time to navigate state-specific regulations, lien positions, and closing requirements. Timelines vary accordingly.
Many gap funders have become more selective. We know from experience that gap funders are most comfortable when rental properties are offered as cross-collateral, providing additional equity protection beyond the project itself.
We use preferred transaction coordinators (TCs) and connectors to handle the transaction on behalf of the lender. TC fees are approximately +/- $1,000 and are paid by the borrower.
Standard loans have no commitment fee. Gap funding, transactional lending, and other non-standard products may require a commitment fee, which can be applied toward closing costs. This is determined deal by deal.
Combining your Fix & Flip loan and Gap Funding under one roof eliminates friction, reduces costs, and gets you to the closing table faster.
Get Started TodayOne application, one approval process for both loans.
Simplified paperwork with preferred TCs handling the transaction.
Faster closing times with coordinated funding under one roof.
With proper collateral and equity protection, cover your entire project cost.
Up to 90% LTC and 75% ARLTV. Fast closings for your rehab projects with no commitment fee on standard loans.
Learn More →Bridge to long-term DSCR refinance. Rehab now, rent later with a clear exit strategy.
Learn More →Close with little to no money out-of-pocket. Available exclusively with our Fix & Flip loans after deal review.
You're Here →Lock up deals with earnest money deposit funding. Non-standard products may include a commitment fee.
Learn More →First-time or seasoned? We fund both experienced and new investors. Your deal quality matters more than your track record.
Gap funding covers the difference between your primary Fix & Flip loan and total project cost. It can cover the first construction draw to get your project started, help with closing costs, or pre-pay interest reserves to reduce your monthly carrying costs. We take a strategic approach to structure the right gap funding solution for each project — whether that means covering the down payment, rehab draws, or a combination. We take a strategic approach to structure the right gap funding solution for each project — whether covering the first draw, closing costs, interest reserves, or a combination. Think of it as the missing piece that can get you to up to 100% financing.
Gap funding can be used in several strategic ways: covering the first construction draw to get your project started, helping cover closing costs, pre-paying interest reserves to reduce monthly carrying costs, or leveraging OPM (Other People's Money) when you have the ability to close on your own but want to preserve capital. We can also cross-collateralize against rental properties you own to provide additional equity protection for the gap funder. Some clients close their Fix & Flip loan first and then request gap funding after closing. We offer many solutions and take a strategic approach to each deal.
We actually prefer that borrowers have the ability to close without gap funding. Gap funding is for investors who want to use OPM strategically — not for those who cannot close without it. If you have equity tied up in other properties or simply want to preserve your capital for other deals, gap funding lets you scale faster while keeping your cash reserves intact.
We have multiple funding channels. At times we can fund on our own balance sheet, bring gap funders (also known as “gators”) to participate with us on a loan, or have a gap funder provide the capital with the assistance of a connector and transaction coordinator. The structure depends on the deal, the borrower, and the amount of equity protection available.
We start by providing a term sheet for a standard Fix & Flip or Fix2Rent loan. After reviewing the deal, our team determines if it could be a candidate for gap funding. If so, we evaluate the combined ARLTV (targeting 70-75% max), profit margins, exit strategies, and timeline. A borrower interview and bio are required as part of the vetting process.
Requirements include a minimum credit score of 680+, a viable real estate investment deal, an approved or pre-approved Fix & Flip loan through Levine Capital, sufficient equity protection, and a borrower interview and bio. Gap funders typically target 15-25%+ returns on their capital since they are taking on more risk behind the first position loan. Payment structures are flexible — monthly payments, hybrid arrangements, or deferred — and are negotiated deal by deal. Gap funders must be comfortable with the borrower before proceeding.
It is possible. When you combine a Fix & Flip loan with gap funding through Levine Capital, you can achieve up to 100% of your project costs covered on a case-by-case basis. However, the combined first position loan and gap funding should not exceed 70-75% of the After Repair Loan-to-Value (ARLTV). Cross-collateral may be required when combined LTV exceeds 75%.
The standard loan starts at a 2% origination fee with no commitment fee. Gap funding origination starts at 2% and may be higher depending on the deal. Gap funders typically target 15-25%+ returns on their money — the shorter the duration, the cheaper the capital. Longer terms can be arranged but will cost more, and the gap funder may want monthly payments or a hybrid structure. All terms are negotiable. Additional costs include a Connector Fee of 2-5% of total gap funds (paid by the borrower), TC fees of approximately +/- $1,000 (paid by the borrower), and a possible commitment fee that can be applied toward closing costs.
No. We exclusively provide gap funding in conjunction with our own Fix & Flip loans. We do not offer gap funding behind another lender. This allows us to streamline underwriting, coordinate documentation through our preferred transaction coordinators, and close faster with fewer delays.
Every state has different regulations, lien positions, and closing requirements. Gap funding requires additional due diligence including borrower interviews, equity protection analysis, and coordination with preferred transaction coordinators and connectors. We prioritize getting it done right over getting it done fast, though we still target closing in 3-4 weeks when possible.
Submit your deal for a free, no-obligation term sheet. Our team will review and let you know if your project qualifies for gap funding.
No credit check required for initial quote • Response within 24 hours