Gap Funding for New Construction Duplex

St. Louis, Missouri
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Gap Funding for New Construction Duplex

James BrownPro Member
Member since 2024 · 27 posts · 10 votes

I have full rehab experience that is currently serving as a LTR. I am investing in a new construction duplex opportunity that needs gap funding. Between purchasing land and plans out of pocket, I don't have enough for the liquidity requirement or cash to close.

The duplex will be a 2400 sq.ft total build. 1200/unit 3bed 2ba each. SFH new builds in area with those dimensions start 275k.

I'm purchasing land free and clear for 20k utilities, minimal clearing needed, soil test ok, city hall ok'd zoning for duplex.

Construction costs ~ 330k

ABV ~ 510k This will be 2nd new construction duplex within a mile but the only one with 3bed 2bath/unit. There are about 4 new construction SFH in .5 mile radius.

Rental income - 1,400-1,700/month rent for 3bed new construction in area.

Lenders are offering 10% interest, 80-85%LTC, ~77k in liquidity required. Interest payment about 2400/month. 6-8 month build plan.


An opportunity for a capital partner or lender for this project.

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Vijay FriedmanBusiness Member
Miami, FL · Member since 2026 · 766 posts · 122 votes
4mo
Quote from @James Brown:

I have full rehab experience that is currently serving as a LTR. I am investing in a new construction duplex opportunity that needs gap funding. Between purchasing land and plans out of pocket, I don't have enough for the liquidity requirement or cash to close.

The duplex will be a 2400 sq.ft total build. 1200/unit 3bed 2ba each. SFH new builds in area with those dimensions start 275k.

I'm purchasing land free and clear for 20k utilities, minimal clearing needed, soil test ok, city hall ok'd zoning for duplex.

Construction costs ~ 330k

ABV ~ 510k This will be 2nd new construction duplex within a mile but the only one with 3bed 2bath/unit. There are about 4 new construction SFH in .5 mile radius.

Rental income - 1,400-1,700/month rent for 3bed new construction in area.

Lenders are offering 10% interest, 80-85%LTC, ~77k in liquidity required. Interest payment about 2400/month. 6-8 month build plan.


An opportunity for a capital partner or lender for this project.

@James Brown
Owning the land free and clear definitely helps the story. With the project already scoped out and prior duplex experience, the biggest question is usually how the lender views the liquidity requirement versus the overall project strength. Are you planning to hold long-term after completion or keep both sale and rental exits open? Feel free to click Contact Us, check out our website, or give us a call if you'd like to discuss the scenario further.

786-656-0387
DreamPoint Capital
WebsiteView Page
1Reply
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10 Replies

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  • Account Closed
    Member since 2026 · 16 posts · 4 votes
    4mo

    I can take a look for you, email me the details. If you like

    0Reply
    • James BrownPro Member
      OP
      Member since 2024 · 27 posts · 10 votes
      4mo
      Quote from @Account Closed:

      I can take a look for you, email me the details. If you like


       Leslie, whats your email? And what details would you like?

      0Reply
    • Account Closed
      Member since 2026 · 16 posts · 4 votes
      4mo

      @James Brown sent you a connect request. Then I can message you my email.

      0Reply
  • Account Closed
    Member since 2026 · 16 posts · 4 votes
    4mo

    The lender Iam thinking for you would not have interest payments, proof of paid property should be your down payment. We do a new construction loan to long term or DSCR. Should not be 10% all depends on factors. Are you still interested?

    Leslie

    0Reply
  • Taylor Dansby
    Member since 2026 · 27 posts · 5 votes
    4mo

    James, this looks like a solid project to review, especially with the land coming in low, zoning cleared, and a defined build plan.

    The big things I’d want to look at are total cost basis, finished value, builder scope, timeline, liquidity gap, and exit strategy once it’s complete.

    We help investors structure funding for projects like this, including gap funding, construction, and bridge options.

    Happy to connect and take a quick look at the numbers if you’re still looking for capital.

    0Reply
    • James BrownPro Member
      OP
      Member since 2024 · 27 posts · 10 votes
      4mo
      Quote from @Taylor Dansby:

      James, this looks like a solid project to review, especially with the land coming in low, zoning cleared, and a defined build plan.

      The big things I’d want to look at are total cost basis, finished value, builder scope, timeline, liquidity gap, and exit strategy once it’s complete.

      We help investors structure funding for projects like this, including gap funding, construction, and bridge options.

      Happy to connect and take a quick look at the numbers if you’re still looking for capital.


       Taylor, I’ll send you a message to connect.

      0Reply
  • Neil Smith
    Flipper/Rehabber · Sacramento CA · Member since 2021 · 7 posts · 4 votes
    4mo

    Sounds like a great deal for a capital partner- private money individual- let me know if you would like a connection with a private gap lending individual 

    0Reply
  • Camile Case
    Developer · Fort Lauderdale, FL · Member since 2026 · 24 posts · 3 votes
    4mo

    James, interesting opportunity. A few questions that would help evaluate this better:

    💎 Property location?
    💎 Is the site permit-ready or fully shovel-ready?
    💎 Zoning already approved for the duplex?
    💎 Utilities confirmed and available at site?
    💎 Any remaining site work, impact fees, or entitlement items outstanding?
    💎 Expected timeline from permit issuance to vertical construction?

    The land basis looks attractive. Understanding readiness and execution timeline would help determine whether this is primarily a capital need or a timing/structure opportunity.

    0Reply
  • Denise WebsterBusiness Member
    Financial Advisor · Albuquerque, NM · Member since 2014 · 82 posts · 30 votes
    4mo

    This is the kind of gap-funding request where the structure matters just as much as the project numbers.

    You’ve already provided several details lenders and capital partners would want to see: land status, zoning feedback, soil test, construction cost, projected value, estimated rents, LTC offers, liquidity requirement, and build timeline. That is a good starting point.

    Where I would tighten the package is around risk and repayment.

    For a new construction duplex, I would expect a capital partner or gap lender to want clarity on:

    • Final land ownership and title status
    • Full sources and uses
    • Construction budget broken into line items
    • Builder/GC contract and experience
    • Permit status
    • Draw schedule
    • Contingency reserve
    • Interest reserve
    • Timeline with inspection milestones
    • Exit plan: sale, DSCR refinance, or long-term hold
    • Rent comps and sale comps supporting the ABV

    One issue with gap funding is that it can be debt, equity, or a hybrid. Each version affects the deal differently. If it is debt, the senior construction lender must allow it. If it is equity, the partner will care about control, preferred return, profit split, repayment priority, and what happens if the build runs long.

    The liquidity requirement is not just a lender box to check. It protects the project when draws lag, materials cost more, inspections delay, or leasing/refinance takes longer than expected. A 6–8 month build plan can become 9–12 months quickly if the market, city, contractor, or weather does not cooperate.

    I’d suggest presenting this less as “I need gap funding” and more as a complete capital stack:

    Senior construction loan:
    Borrower cash already invested:
    Additional capital needed:
    Use of additional capital:
    Repayment source:
    Projected stabilized value:
    Projected rent:
    Backup exit:

    That format makes it easier for a funder to quickly see whether they are filling a temporary liquidity gap or taking on construction execution risk.

    R.E.P. Financial LLC
    WebsiteView Page
    0Reply
  • Vijay FriedmanBusiness Member
    Miami, FL · Member since 2026 · 766 posts · 122 votes
    4mo
    Quote from @James Brown:

    I have full rehab experience that is currently serving as a LTR. I am investing in a new construction duplex opportunity that needs gap funding. Between purchasing land and plans out of pocket, I don't have enough for the liquidity requirement or cash to close.

    The duplex will be a 2400 sq.ft total build. 1200/unit 3bed 2ba each. SFH new builds in area with those dimensions start 275k.

    I'm purchasing land free and clear for 20k utilities, minimal clearing needed, soil test ok, city hall ok'd zoning for duplex.

    Construction costs ~ 330k

    ABV ~ 510k This will be 2nd new construction duplex within a mile but the only one with 3bed 2bath/unit. There are about 4 new construction SFH in .5 mile radius.

    Rental income - 1,400-1,700/month rent for 3bed new construction in area.

    Lenders are offering 10% interest, 80-85%LTC, ~77k in liquidity required. Interest payment about 2400/month. 6-8 month build plan.


    An opportunity for a capital partner or lender for this project.

    @James Brown
    Owning the land free and clear definitely helps the story. With the project already scoped out and prior duplex experience, the biggest question is usually how the lender views the liquidity requirement versus the overall project strength. Are you planning to hold long-term after completion or keep both sale and rental exits open? Feel free to click Contact Us, check out our website, or give us a call if you'd like to discuss the scenario further.

    786-656-0387
    DreamPoint Capital
    WebsiteView Page
    1Reply
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