Real estate investors often treat origination fees as an unavoidable cost, paying a percentage of the loan amount on every deal. Homebldr, a technology-driven investment financing platform, has introduced a subscription product that eliminates its origination fees entirely for 12 months, a model with no direct equivalent in the market.
The financial impact becomes clear when annualized. For an investor closing six deals with an average loan size of $417,000—totaling $2.5 million in loan volume—homebldr origination fees at 1.3% would amount to $32,526 on a per-deal basis. Under the subscription, the same investor would pay a flat $20,000 upfront, a 39% reduction saving roughly $13,000. The break-even point occurs when investors use 45 to 65 percent of their allotted loan volume.
Adam Eldibany, founder of homebldr, notes that most investors never calculate the annual cost of origination fees. The homebldr financing subscription currently offers three tiers: Core (up to $1 million in loan volume), Growth (up to $2.5 million), and Scale (up to $5 million). The Growth tier, designed for investors closing a transaction every couple of months, is often the best fit.
Beyond savings, the subscription shifts payment away from closing. Origination fees are traditionally paid in cash at closing, requiring sourcing documentation. The homebldr subscription fee can be paid by credit card, through gifted funds, or via buy now, pay later services like Affirm or Klarna, with no sourcing requirements. This flexibility preserves capital for investors managing multiple projects.
Eldibany also addresses a common misconception about working with brokers versus direct lenders. “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.” Many competitive capital sources operate exclusively through the wholesale channel, and homebldr’s subscribers can access these terms without additional fees.
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. It 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.
