Understanding the Gator Method
Lunar Lending's Gator Method simplifies short-term funding by providing quick, efficient loans tailored for real estate investors working on wholesale deals or fix-and-flip projects. Here’s how the process works:
1. Understanding the Gator Method
The Gator Method is focused on funding Earnest Money Deposits (EMDs) or transactional loans for short periods, typically ranging from 1 to 30 days. These loans enable wholesalers or investors to secure contracts quickly without tying up their capital.
2. Finding the Right Opportunities
Lunar Lending partners with experienced real estate wholesalers and investors, ensuring their deals are solid and have potential for fast returns. They specialize in bridging the gap for funding when investors encounter a time-sensitive deal.
3. The Loan Approval Process
- Simple Application: Investors provide details about the deal, including the wholesale contract and EMD requirements.
- Fast Decision: Lunar Lending reviews the deal, ensuring the terms align with their risk criteria. Approval typically happens in hours or a few days.
- Funding Delivered: Once approved, funds are sent directly to the escrow agent or title company managing the deal.
4. How Investors Repay
Repayment is expected upon deal closure, often within days or weeks. This ensures quick turnaround and allows investors to reinvest profits into new opportunities. Interest rates and origination fees are built into the agreement, providing clarity upfront.
5. Why It Works for Real Estate Investors
- Speed: Traditional financing can’t match the quick approval and funding timelines.
- Flexibility: Loans are structured to match short-term needs without long-term commitments.
- Profit Potential: Enables investors to capitalize on high-potential deals without liquidating assets or waiting for other transactions to close.