Mind the Gap: How Gap Funding Supercharges Your Fix-and-Flip Strategy

Securing a hard money loan is just one piece of the puzzle in a successful fix-and-flip deal. What happens when your primary loan doesn’t quite cover the full project cost? That’s where gap funding steps in—a flexible financial tool that can be the difference between one project and a growing portfolio.

What Is Gap Funding?

Gap funding bridges the shortfall between your primary loan (like a hard money loan) and the total capital needed to complete a project. This could include:

• Down payments
• Closing costs
• Rehab overruns
• Holding costs or even
• Additional reserves required by the lender

In short, it fills in the capital “gap” that may otherwise stall your deal.

Why Gap Funding Matters for Fix-and-Flip Investors

• Preserve liquidity: Use other people’s capital to reduce how much of your own cash you tie up.
• Scale faster: Take on multiple projects simultaneously without waiting on one to exit.
• Boost returns: Leveraging gap funding helps improve ROI by minimizing your upfront investment.
• Stay agile: Covers unexpected expenses like contractor delays or supply cost hikes.

Sources of Gap Funding

• Private investors or equity partners
• Personal or business lines of credit
• Home equity or retirement accounts (self-directed IRAs)
• Secondary loans from flexible lenders (like us!)

How We Help

Ready to scale your fix-and-flip business without tying up all your capital? Connect with Gold Chair Capital today and discover how our high-leverage loans and creative gap funding strategies can help you close faster, build smarter, and grow bigger. 📞 Call now or 📝 apply online to get pre-approved in just 24 hours.