For the profit-driven investor, Gap Funding is best utilized for short term, high return transactions where additional capital is needed to cross the finish line. Traditionally, an equity partner is pursued for fill the equity void, usually in exchange for a greater-than-hoped-for profit share in the project. Gap Funding allows you to save 100% of your equity by leveraging debt instead. Assuming the project's margins are high, the savings can be substantial.

We don't always recommend new investors use this money for 100% financing and deprive themselves of the knowledge & underwriting available from a hard money lender or experienced private money lender - or alternatively, an experienced mentor to guide you through the numbers. In event there's no mentor to refer to, we suggest it be used as Gap Funding/ Skin in the Game.