Creative GAP Funding Options for Real Estate Investors

When it comes to closing a real estate deal, especially on flips or BRRRR properties, there’s often a frustrating gap between what your lender will cover and what you actually need to close. That’s where GAP funding comes in — and creative investors know how to use it wisely.

💡 What Is GAP Funding?

GAP funding is the capital you use to cover the difference between:

• What a hard/private money lender will finance

• And what’s still needed for down payments, rehab, closing costs, or reserves

If your lender only covers 80–90% of the total project cost, GAP funding fills the rest — without draining your personal cash.

🔑 Common GAP Funding Needs

• Down payment on a fix & flip or BRRRR loan

• Rehab or construction overages

• Closing costs or escrow shortages

• EMD (Earnest Money Deposit)

• Holding reserves required by lender

🚀 Creative GAP Funding Options

1. Private Money Lenders (PMLs)

   • Individuals or entities willing to fund portions of your deal

   • Often relationship-based with flexible terms

2. Joint Venture (JV) Capital

   • Partner with investors who bring money while you bring the deal & sweat equity

   • Shared profits instead of fixed debt

3. Business Lines of Credit

   • Use your business credit to cover the gap

   • Reusable and flexible for multiple deals

4. EMD & Transactional Funding

   • Short-term capital just for earnest money or double-close transactions

   • Usually repaid within 1–3 days

5. Personal Loans or HELOCs

   • Can be used for experienced investors with solid credit

   • Fast approvals, often unsecured

🧠 Pro Tips for Using GAP Funding

✅ Be transparent with all funding partners — hiding leverage can kill deals
✅ Have a clear exit strategy (flip, refi, or sale) to reassure short-term lenders
✅ Track all costs and timelines — make sure the GAP funding adds value, not risk
✅ Don’t overleverage — make sure your deal still cash flows or exits profitably

Final Thoughts

If your deal is solid but the bank says no or only says “some,” GAP funding can be the bridge between hustle and close.

At Monk Capital Partners, we help fund that gap — with a deep bench of creative lenders, EMD solutions, and JV opportunities. Let’s connect the capital dots and get your deal done.

📩 Ready to explore your GAP options? Reach out today.
[email protected] | www.monkcapitalpartners.com