Sharing how we set up gap funding on our Atlanta flips, since I get asked about the structure a lot. Our primary lender covers most of the purchase and the rehab budget. What's left — the down payment gap and closing costs — is usually $35,000 to $45,000 per property. That piece comes from a private gap partner, secured by a recorded second-position lien, on a 6-month term, repaid when the property sells or refinances. Before a partner commits, we show the full underwriting: purchase price, rehab scope and budget, ARV with sold comps, timeline, and exactly where their lien sits. Everything is documented in writing, and partners get updates while the project runs. Their capital is treated as a loan, not a speculation — but to be clear, returns are not guaranteed and real estate always carries risk. Happy to answer questions on the structure. — Raul, Anchor Point Development
Hi Raul, that second position gap structure is familiar on Atlanta flips where the senior lender covers purchase and most of rehab and the gap piece covers down payment and closing costs. On $35K to $45K gaps, lenders and partners will focus on total leverage against ARV, your track record, and whether the first lender allows a recorded second lien, since not all of them do. Clear underwriting with comps, rehab budget, and timeline helps a lot, just like you described. We are Royal Partners and we help arrange gap and second position capital for investors through our network. If you want, DM us your next deal with purchase price, rehab, ARV, and the senior terms and we will give you straight numbers on what could fill the gap.