Gap Funders was founded in 2013 by its principal, Brian Netzel, to provide fix and flip funding for California residential renovation projects.
Brian has extensive experience in real estate, from rehabbing and land-lording to buying and creating real estate mortgages as a principal.
Brian is a California native, and has lived in California for three decades. He graduated from Point Loma Nazarene University and has advanced degrees from Portland State University and Western Seminary.
He enjoys hiking, exploring the San Francisco Bay area, and travel to interesting destinations. He is married and and has one child on the way.
He is familiar with many micro-markets of the state because he enjoys living and traveling in what he considers the best state of the union.
Brian saw the difficulty experienced by rehabbers to secure 2nd lien financing to fill the “gap” of financing left by what 1st lenders cannot provide. The financing model he created pays for all other costs associated with a rehab to re-sell project with an equity split component to compensate for the additional risk incurred by being a 2nd lender.
Our mission is to create wealth and quality of life through real estate.
To accomplish this we are instrumental in creating rehab loans to contractors and real estate investors. The uniqueness of our program is that we provide 100% of the funding needed to buy, fix, and flip a home.
We work with experienced real estate investors and contractors who find under-market properties to rehab and re-sell.
Being 2nd lien lenders, we are very aware of and judicious about reducing our risk in every rehab loan we create. Here are some measures we take to reduce our risk:
We create win-win rehab and re-sell transactions in which there is an equal benefit to the rehabber as well as ourselves. We want our clients to be fully committed to the project and see a pay day commensurate to the dedication and skill they apply to the project.
We strive to work with only the best rehabbers in the market because we are dependent on the skill and dedication of the rehabber to the project.
We always have the property’s after-repair-value determined by a licensed appraiser familiar with the neighborhood.
We practice complete transparency and have the borrower sign an LOI early in the underwriting process which evidences their assent to sharing profit.
We use licensed loan originators to create loan documents
We use bonded and recognized escrow companies to check title and effect the transfer of ownership
We view and evaluate the house and neighborhood
We meet every borrower in person to assess experience and character
We use a funds control company to escrow all rehab money that is released only upon work completion
ARV appraisals, rehab budgets, and terms of loans are always estimated as worst-case
If you are looking for a way to invest in real estate, we have prepared some resources for you. Our goal is to empower our investor-clients to reduce their risk while increasing their returns through private lending.
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