For fix-and-flip investors, the path to scaling from a few deals a year to eight or more often hits a common roadblock: running out of cash. According to Adam Eldibany, founder of homebldr, a technology-driven real estate investment financing platform, the primary constraint for growing investors is not a lack of deals but a lack of available capital. “The number one constraint is definitely cash on hand,” Eldibany said. “If an investor doesn’t have cash, they can’t do more deals, period.”
Even when a lender covers all purchase and rehab costs, investors still need cash for reserves, closing costs, and monthly loan payments. This cash cycle often trips up investors transitioning from a few deals a year to a higher volume. Eldibany explains that investors typically sell or refinance a few properties, accumulate a pile of cash, and then rapidly take on multiple projects. However, they eventually hit a wall because the remaining cash is often allocated for monthly loan payments rather than new acquisitions. If all active projects perform as expected, the investor regains liquidity and can continue scaling. But if a project runs over budget, gets delayed, or sells for less than projected, the slowdown can compound and stall the entire business.
Without a better financing structure, investors often turn to two levers: more leverage or outside partners. As they build a track record, they may qualify for larger loans, a business line of credit, or secondary financing. Others bring in liquidity partners to fund deals directly. Both options come with costs—more debt increases financing costs, and bringing in a partner usually means giving up a share of profit and some control. Eldibany suggests that the best way to preserve cash is to identify financing options with better terms, specifically lower rates and lower fees.
homebldr’s financing subscription model is designed to address this gap. Instead of paying origination fees in cash at every closing, investors pay a single subscription fee upfront, which can be covered with a credit card, another line of debt, or a buy now, pay later product. For the length of the subscription, they can close deals without paying additional origination fees. “Because they aren’t paying origination at closing, they have more cash in their pocket, which can be put towards their next deal,” Eldibany said.
The real driver, according to Eldibany, is compounding. Saving a modest amount on one deal may not seem significant, but doing it on every deal over a year can have a substantial impact. “Preserving liquidity compounds over time,” he said, “and allows investors to maintain as much momentum as possible.” For investors moving from a side hustle pace to full-time volume, this compounding effect often separates those who scale from those who stall.
More details on how the subscription model works, including loan volume tiers and payment options, are available on homebldr’s financing subscription page.
