Homebldr, a technology-driven investment financing platform, has launched a subscription product that eliminates origination fees for 12 months, a first in the market. The model is designed to reduce costs for real estate investors who close multiple deals per year, often paying thousands in fees on a per-deal basis.
Under traditional financing, investors pay origination fees on each loan, typically around 1.3% of the loan amount. For an investor closing six deals with an average loan size of $417,000, totaling $2.5 million in annual loan volume, homebldr origination fees would amount to $32,526 per year. The subscription model offers an alternative: a single upfront fee that covers all eligible deals for 12 months, up to a volume cap.
The subscription comes in three tiers. The Core tier, for investors closing two to three deals per year, covers up to $1 million in loan volume. The Growth tier, suited for those closing a transaction every couple of months, caps at $2.5 million. The Scale tier, for the most active investors, covers up to $5 million. Using the Growth tier as an example, an investor closing six deals totaling $2.5 million would pay a $20,000 subscription fee instead of $32,526 in origination fees, a 39% reduction saving roughly $13,000 annually. The break-even point occurs when investors use 45% to 65% of their allotted loan volume.
Beyond savings, the subscription model offers payment flexibility. Traditional origination fees must be paid in cash at closing, requiring documented sourcing. The subscription fee is paid outside of closing and can be paid via credit card, gifted funds, or buy now, pay later providers like Affirm or Klarna, with no sourcing requirements.
Adam Eldibany, founder of homebldr, emphasizes that the broker model provides subscribers access to wholesale and preferential pricing from capital sources 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,” Eldibany 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 capital sources operate exclusively through the wholesale channel, meaning investors who only work with direct lenders miss out on better terms.
Homebldr provides access to a network of more than 80 capital partners, including lenders, family offices, and private lending groups, and serves investors nationwide across fix and flip, new construction, and long-term rental financing. The subscription model aims to change how investors view financing costs, shifting focus from per-deal fees to annual costs and enabling better capital management.
