Real estate investors typically view origination fees as an unavoidable cost of each deal. homebldr, a technology-driven investment financing platform, has launched a product that challenges this norm: a financing subscription that eliminates homebldr origination fees entirely for 12 months. The implications for investors closing multiple deals per year are significant, as the cumulative cost of origination fees can be substantial.
Origination fees are often assessed per deal at a percentage of the loan amount. For example, at 1.3% on a $417,000 loan, the fee is approximately $5,421. An investor closing six deals at that average loan size over 12 months, with a total loan volume of $2.5 million, would pay $32,526 in homebldr origination fees on a deal-by-deal basis. These illustrative figures highlight the annual cost that many investors may not calculate. Adam Eldibany, founder of homebldr, notes that the per-deal number feels manageable, but the annual total often changes investors' perspectives.
The homebldr financing subscription currently comes in three tiers. The Core tier is designed for investors closing two to three deals per year, with up to $1 million in loan volume. The Growth tier covers investors closing a transaction roughly every couple of months, with an annual loan volume cap of $2.5 million. The Scale tier covers up to $5 million in annual loan volume. Using the Growth tier example, an investor closing six deals totaling $2.5 million would pay $20,000 under the subscription, compared to $32,526 under the traditional model—a 39% reduction or roughly $13,000 in savings. The break-even point arrives well before the full volume cap is reached; investors using as little as 45 to 65 percent of their allotted loan volume are typically already ahead.
Beyond savings, the subscription offers structural advantages. Under a traditional model, origination fees are paid in cash at closing, requiring documentation of the source of funds. The homebldr subscription fee is paid entirely outside of closing and can be paid by credit card, through gifted funds, or via buy now, pay later providers like Affirm or Klarna, with no sourcing requirements. This flexibility keeps capital in the investor's hands rather than at the closing table.
Eldibany also addresses the common assumption that working directly with a lender produces better pricing than going through a broker. He states, "What many investors do not realize is that the terms being offered to them by direct lenders are retail terms. Experienced brokers can frequently access wholesale and preferential pricing from the same capital sources that is not available to investors going through the retail channel." Many competitive capital sources operate exclusively through the wholesale channel and do not work directly with investors, regardless of their experience. For homebldr's subscription users, this means accessing wholesale and preferential terms without additional fees or yield spread added on.
homebldr is a technology-driven investment financing platform that provides real estate investors with access to a network of more than 80 capital partners, including lenders, family offices, and private lending groups. The platform operates on a broker model and serves investors nationwide across fix and flip, new construction, and long-term rental financing.
Disclaimer: This article is based on information provided by the expert source cited above. It is intended for general informational purposes only and does not constitute legal, financial, or real estate advice. Readers should conduct their own research and consult qualified professionals before making any real estate or financial decisions.
