Active real estate investors often treat 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 market equivalent: a financing subscription that eliminates homebldr origination fees entirely for 12 months.
The concept is straightforward, but for investors closing multiple deals annually, the financial implications are significant. Origination fees at 1.3% on a $417,000 loan amount to roughly $5,421 per transaction. An investor closing six such deals over a year, totaling $2.5 million in loan volume, would pay $32,526 in homebldr origination fees under a traditional per-deal model. These figures are illustrative, but they highlight a cost that most investors have never calculated annually. Adam Eldibany, founder of homebldr, notes that the per-deal fee feels acceptable, but the annual total often prompts a reassessment of the fee structure.
Rather than paying origination on each transaction, subscribers pay a single upfront fee and access zero homebldr origination across all eligible deals for 12 months, up to a loan volume cap determined by their tier. The homebldr financing subscription currently offers three tiers: Core (up to $1 million in annual volume), Growth (up to $2.5 million), and Scale (up to $5 million). Using the Growth tier as an example, an investor closing six deals totaling $2.5 million would pay $20,000 under the subscription versus $32,526 under the traditional model—a 39% reduction, saving approximately $13,000 annually. The break-even point typically occurs when investors use 45% to 65% of their allotted volume.
Beyond savings, the subscription model offers structural flexibility. Traditionally, origination fees are paid in cash at closing, requiring documentation of the funds' source. The homebldr subscription fee is paid entirely outside of closing and can be paid via credit card, gifted funds, or buy now, pay later services like Affirm or Klarna, with no sourcing requirements. This flexibility keeps capital in investors' hands, which is particularly beneficial for those managing multiple projects.
Eldibany also challenges the assumption that working directly with lenders yields better pricing than using a broker. He explains that direct lenders offer retail terms, while experienced brokers can access wholesale and preferential pricing from the same capital sources. Many competitive lenders operate exclusively through the wholesale channel, meaning investors who avoid brokers miss out on these products. homebldr subscription users gain access to wholesale terms from a network of over 80 capital partners without additional fees or yield spreads, delivering both lower total costs and better underlying pricing.
homebldr is a technology-driven platform providing real estate investors access to a network of capital partners, including lenders, family offices, and private lending groups, operating on a broker model nationwide.
