New Financing Subscription Eliminates Origination Fees for Real Estate Investors

Real estate investors traditionally pay origination fees on each loan, but a new product from homebldr challenges that norm with a financing subscription that eliminates those fees entirely for 12 months. The subscription model, which has no direct equivalent in the market, allows investors to pay a single upfront fee and access zero homebldr origination across all eligible deals for the year, up to a loan volume cap determined by their chosen tier.

Origination fees, typically around 1.3% on a loan, are often viewed as a fixed cost. However, when calculated across multiple deals annually, the total can be substantial. For an investor closing six deals averaging $417,000 each—totaling $2.5 million in loan volume—the annual origination fee at 1.3% would be $32,526. Under the subscription model, the same investor using the Growth tier (capped at $2.5 million) would pay $20,000, a 39% reduction saving roughly $13,000. The break-even point occurs when investors use 45% to 65% of their allotted loan volume, making the subscription advantageous for most active investors.

Beyond savings, the subscription offers payment flexibility. Unlike traditional fees paid in cash at closing, the subscription fee can be paid via credit card, gifted funds, or buy now, pay later services like Affirm or Klarna, with no sourcing requirements. This keeps capital in the investor's hands rather than tied up at closing, a crucial advantage for those managing multiple projects.

homebldr operates as a broker, giving subscribers access to wholesale and preferential pricing from over 80 capital partners—terms often unavailable to investors dealing directly with lenders. Adam Eldibany, founder of homebldr, notes that many investors overlook the benefits of the broker model. “What many investors do not realize is that the terms being offered to them by direct lenders are retail terms,” he says. “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.”

The homebldr financing subscription comes in three tiers: Core (up to $1 million loan volume), Growth (up to $2.5 million), and Scale (up to $5 million). Each tier is designed for investors with different activity levels, from those closing two to three deals a year to the most active investors. By eliminating origination fees and providing better terms, the subscription model aims to change how real estate investors think about financing costs.

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.