A new financing model from homebldr, a technology-driven investment financing platform, allows real estate investors to eliminate origination fees for 12 months by paying a single upfront subscription fee. The product, described as having no equivalent in the market, addresses a cost that many investors treat as a fixed expense without calculating its annual impact.
Origination fees, typically around 1.3% of the loan amount, can accumulate significantly for investors closing multiple deals per year. For example, an investor closing six deals at an average loan size of $417,000 would pay approximately $32,526 in homebldr origination fees over 12 months under a traditional per-deal model. Under the subscription model, the same investor using the Growth tier would pay a flat $20,000 fee, representing a 39% reduction and saving roughly $13,000 annually. The break-even point occurs when investors use 45 to 65 percent of their allotted loan volume.
The homebldr financing subscription comes in 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 is designed for investors closing a transaction roughly every couple of months. Unlike traditional origination fees, which must be paid in cash at closing and may require documented sourcing, the subscription fee can be paid outside of closing via credit card, gifted funds, or buy now, pay later providers like Affirm or Klarna, offering flexibility that helps investors retain capital for their projects.
Adam Eldibany, founder of homebldr, emphasizes that the broker model provides subscribers with access to wholesale and preferential pricing from capital sources that are not available through direct lenders. “What many investors do not realize is that the terms being offered to them by direct lenders are retail terms,” he said. “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, making a broker essential for accessing their products.
Homebldr provides access to a network of more than 80 capital partners, including lenders, family offices, and private lending groups, covering fix and flip, new construction, and long-term rental financing. The subscription model delivers both a lower total cost and better underlying pricing than most investors could access on their own.
