For capital partners
Earn 20% without the operating headaches.
Fund the gap on a vetted Project Spokane flip or BRRRR. We handle underwriting, operator vetting, and project oversight. You write a check, the property closes, and you're paid back with interest at sale - typically six months later.
Spokane 3-bed SFR · Flip
Spokane · VIP operator
- Purchase
- $150,000
- Rehab
- $50,000
- Projected sale
- $300,000
- Gap ask
- $50,000
- Term
- 6 months
Your return
$7,500
20% APR + $1,500 doc fee + 2% of the gap paid at sale
The mechanics
How gap lending works at Project Spokane
Four steps. Six months on average. Simple.
- 01
We source and underwrite a deal
Project Spokane finds a flip or BRRRR opportunity in Spokane, runs full underwriting through our Deal Underwriter, and matches it to one of our vetted VIP operators. Underwriting is conservative - we sandbag ARV to the comparable that just closed, not the best one. Every deal we present to capital partners has cleared an internal go/no-go before we show it.
- 02
We present the deal to you
You receive a one-page deal sheet with the property, the underwriting, the operator, the timeline, and the loan terms. Typical ask: $30K–$80K gap. Typical return: 20% APR + $1,500 doc fee + 2% points paid at sale. Typical term: 6 months. You review it like you'd review any other private loan and accept or pass.
- 03
You fund the gap; we close the deal
On accept, you wire the capital to the title company. We close the purchase. The operator starts the rehab. Project Spokane manages the project through close - you don't field contractor calls, manage timelines, or chase the appraisal.
- 04
You get paid back at sale
Property sells (typical 4–6 months from close). At closing, your principal returns first, followed by accrued interest and the doc fee. Wire arrives the same day funds clear escrow. We send a one-page recap with the actual numbers vs. the projected.
Run the numbers
What a typical gap loan looks like
One worked example. The same deal, top to bottom.
Example deal
Spokane 3-bed SFR · Flip
Purchase price
Renovation cost
Hard money loan (purchase + rehab)
12% APR · 3% points
Term
Projected sale price
Operator cash needs before sale
- $20,000
10% down payment
on $200K loan
- $6,000
3% points to hard money lender
$200K × 3%
- $10,800
12% APR interest on $180K
$1,800/mo × 6 mo
- $3,500
Closing fees
title, escrow, recording
- $3,000
Misc carrying costs
taxes, insurance, utilities
- Total cash needed$43,300
Gap lender return on $50K
15% on capital over 6 months · ~30% annualized
Why we ask for $50,000
The operator needs $43,300 in cash before the property sells. We typically ask the gap lender for $50,000 - rounded up as a buffer in case rehab or carry costs run over.
Numbers vary deal to deal - we show every gap lender the actual breakdown on every deal.
Exit math at sale
What lands in the operator's pocket after everyone is repaid.
- Sale price$300,000
- Net from sale (after sales costs)$270,000
- − Purchase price−$150,000
- − Renovation cost−$50,000
- − Holding cost (points + interest + closing + misc)−$23,300
- − Gap lender repayment−$57,500
- Operator profit$39,200
Numbers vary deal to deal - we show every gap lender the actual breakdown on every deal.
The moat
What separates us from a generic hard-money pitch
Underwriting that actually filters.
Conservative ARV
We sandbag ARV to the median of three closed comparable sales within the last 90 days - never the highest. If the math doesn't work conservative, we don't show it to you.
Vetted operators only
Every gap-funded deal is run by a Project Spokane VIP operator with at least one closed deal we managed end-to-end. No first-time flippers. No 'I have a guy.' VIP operators, each with a track record.
Active project oversight
Project Spokane manages the project from closing through sale. You don't field contractor calls. You don't chase the appraisal. You don't wait on a wire. If a client wants you in their portal, we can invite you there.
Failed-deal playbook
If a deal goes sideways (a flip can't sell, a BRRRR can't refinance, an operator stalls), we have a defined playbook for protecting your principal - convert to a hold, refinance the gap into permanent debt, or accelerate sale. We've never had to fully exercise it, but it's written.
The honest part
What the risks actually are
We're not going to dress this up.
Gap lending is private real estate debt secured by a specific Spokane property. It is not a fund, not a security, not an SEC-registered offering. Each deal is a discrete loan you choose to make or not. The downside risk is concentrated in one property at a time - that's the nature of the structure.
The main risks we underwrite against: the property doesn't sell at projected ARV (market shifts, comps drop), the rehab goes over budget (timeline extends, eats your interest), or the operator stalls (we have replacement contractors lined up, but it's slower than ideal). Your security is the deed of trust on the property - if a deal goes hard sideways, the property covers the gap loan plus the hard money. We're typically in second position behind hard money, so first-money-in, first-money-out applies.
What we tell you, every time:
- The current comp set we ARV'd against
- The operator's prior deal performance (with us specifically)
- The realistic worst-case scenario for this deal
- Our written playbook if the deal stalls
The fit
Who gap lending is built for
Capital-rich, time-poor investors
You have $50K–$500K to deploy and don't want a second job operating real estate. Gap lending lets capital work while you don't.
Yield seekers tired of 4% returns
Money market and bond yields aren't keeping up with the businesses you're actually trying to fund. 20% APR on a real-estate-secured loan, for 6 months at a time, is a different math problem.
Spokane-curious investors testing the market
You've been watching Spokane and want exposure before committing to operate. Funding deals here is a way in without buying your first property cold.
Not for everyone. Not appropriate for capital you'll need in the next 12 months. Not a substitute for diversified investing. We'll tell you on the call if you're not a fit.
Step one of three
Tell us about your capital.
We add gap lenders to our queue when capital and approach line up with how we run deals. The application call is 30 minutes. We walk through how we underwrite, you walk us through your capital and timeline, and we figure out together whether this is the right fit. About 50% of application calls result in being added to the queue; the rest are usually "come back when X" - which we'll explain on the call.
Once you're in the queue, you'll see deals roughly 1–4 times a year (depending on your capital range). No commitment to fund any specific deal - every deal is yours to accept or pass.
No commitment to fund. No pressure on the call. We respond within 3 business days.
Monthly Update
The Spokane real estate update we'd want to read.
One email, monthly. What's selling, what's stuck, and the deals we're watching.