Real estate investors have long treated origination fees as an unavoidable cost of doing business, paying a percentage of each loan amount at closing. However, homebldr, a technology-driven investment financing platform, has launched a product with no direct equivalent: a financing subscription that eliminates homebldr origination fees entirely for 12 months. For investors closing multiple deals a year, the implications are significant.
Origination fees, typically around 1.3% on a $417,000 loan, amount to roughly $5,421 per deal. While manageable on a single transaction, the cumulative cost over a year adds up. An investor closing six deals at that average loan size, totaling $2.5 million, would pay $32,526 in homebldr origination fees on a deal-by-deal basis. These illustrative figures highlight a cost many investors overlook. Adam Eldibany, founder of homebldr, notes that investors often react with surprise when shown the annual total, as the per-deal number feels reasonable but the annual number does not.
The subscription model offers 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, described by Eldibany as the best fit for most subscribers, covers investors closing a transaction roughly every couple of months, with an annual loan volume cap of $2.5 million. The Scale tier is for the most active investors, covering up to $5 million in annual loan volume. Using the Growth tier example: an investor closing six deals totaling $2.5 million would pay $32,526 under the traditional model but only $20,000 under the subscription, a 39% reduction saving roughly $13,000. The break-even point arrives well before the full volume cap is reached, with investors using as little as 45 to 65 percent of their allotted loan volume typically already ahead.
Beyond savings, the subscription offers payment flexibility. Under a traditional model, origination fees are paid in cash at closing, requiring sourcing documentation. The homebldr financing subscription fee is paid entirely outside of closing, via credit card, other debt, gifted funds, or buy now, pay later providers like Affirm or Klarna, with no sourcing requirements. This keeps capital in the investor’s hands rather than at the closing table.
Eldibany also challenges the assumption that working directly with lenders produces better pricing than going through a broker. “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, meaning the only way to access their products is through a broker. homebldr’s subscribers typically access these wholesale terms without additional fees or yield spread added on, delivering both a lower total cost and better underlying pricing.
homebldr is a technology-driven investment financing platform providing 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.
