Gap funding and gap financing are the most active fields in real estate market. These tools give investors the capability to cover funding shortfalls when loans fall short. The real estate field is a very competitive market and most of the time very expensive. To a local investor, having flexible financing can make all the difference in ensuring the success of their project. Gap funding does that by filling in the gaps and continuing with the project.
Gap financing is generally used in conjunction with a primary loan, such as a mortgage or bridge loan, to provide additional funds that traditional financing does not cover. For example, if a bank only pays for 60% of the costs of a project, portion of remaining 40% could be supplemented with gap funding. More capital enables the investor to move forward without waiting and having additional stress.
Working with RAM. offers customized gap funding solutions tailored to any investor's particular project requirements. This financial freedom enables us to push through even the most hostile situations that may arise in the marketplace. We also offer smooth applications, as well as quick funding approvals. These services will keep your projects on track without delays.
Gap funding with RAM. is tailored to the specific scope and level of risk that a given project requires, so investors get the right support relative to their needs for short-term funding. In competitive market, gap loans can be anywhere from several months up to one year with the design to be flexible where traditional loans fall short of what is required.
Targeted to provide high-yield, short-term solutions by partnering with private lenders, real estate partnerships, and equity contributions with the aim of securing funding that is targeted at filling the gaps in the financing to keep your project on schedule, RAM. varies from bridge loans in the sense that their gap financing identifies and funds unrealized project costs hence enabling the investors to move forward without hold-ups.
Gap financing can be useful in a wide variety of situations real estate investors may find themselves facing. The following two are typical examples of how gap funding operates:
Fliping Properties: An investor in Los Angeles decides to buy a property with the express aim of a quick flip. While the major cost of buying is covered by the primary loan, renovation costs need additional funds. Gap funding enables an investor to cover renovation costs in order to hasten the process and give way to potential returns.
New Development Projects: A developer in San Francisco gets primary funding for a new residential building project. Due to unforeseen costs of construction not contemplated by the primary loan, gap financing allows him to get funds without delay for those costs and save the project from expensive delays.
The gap financing available from RAM. provides the agility required by investors in such a hot market. And when unexpected expenses arise, access to those funds means the difference between a job well done and a job delayed.
Note: This program is more of an informative nature, to give you an approximate understanding of what to expect from us when making a decision to fund or not. These criteria may vary depending on your exact property and scenario.
And our Loan officer will get back to you as soon as possible...
Apply Now