Gap Funding for Large Scale Projects: Creative Solutions for High Value Assets with Ethan Gao

Feb 17, 2023

Ethan has owned several rental properties, made over 300 private loans secured by real estate (both single family and commercial real estate), invested in over 100 single family fix and flip projects and is a general partner on multiple commercial and multifamily projects totaling over 900 units. His primary role on deals is loan guarantor/key principal or gap funder (i.e. where the sponsorship team has raised around 80% of the limited partnership equity but does not have enough time to raise the remainder - Ethan will come in and lend that remainder to the team so that the deal can get done on time).  

 

Ethan personally and through his private equity fund, Good Bull Investments LP and Good Bull Lending, LLC has also invested in commercial properties totaling over $25 million (including hotels, self-storage, office building, medical office and retail). Ethan graduated from Cornell University with a BA in Economics in 2003 at the age of 19 and from Columbia Law School in 2006 at the age of 22. He worked on billion dollar mergers and acquisitions for several years on Wall Street in financial institutions before transitioning to being a professional investor and entrepreneur in 2016. He lives in Houston, TX with his wife (who he met the first day of class at Cornell in 2000) and their five children.

 

In this episode, Ethan shares how he made his mark in the industry by taking risks and making smart investments. Hear what type of investments they have done, from gap loans to leverage buyouts, special situations lending and investing, technology companies, non-emergency medical transport companies, HVAC and plumbing companies, Airbnbs, land development, commercial real estate and a mall. He also discusses the process of liquidity for larger investments such as 100 million dollar deals and how to get them done in five days or less. This is an essential episode for anyone looking to jump into the world of private real estate investing. Tune in today!

 

 

 

[00:01 - 07:43] Investing in Gap Loans and Special Situations with 35 Million Under Management

• Gap funding is available for million dollar plus or $2 million plus investments 
• Value add comes from large ticket items that people consider stores of value such as fine jewelry, fine art, and vintage vehicles 
• Equity interests in other deals can be signed over as collateral 
• 401k can be counted towards liquidity if not 55 years old
• Private equity firm with 35 million under management, looking to get to a hundred million by the end of the year 

 

[07:44 - 11:17] Closing Segment

• Ethan Goa shares why we should invest in gap loans, leverage buyouts, special situations lending and investing 
• To learn more about Ethan and his work, listeners can visit Good Bull Investments!

 

Tweetable Quotes:

“If you're not making your payments, if you're not sticking with your business plan, if you're not bettering the property , it's gonna turn into recourse anyway.” – Ethan Gao

 

“If somebody can, I wanna learn from them.” – Ethan Gao

 

 

You can connect with Ethan Gao through his:

Website: Good Bull Investments

LinkedIn: Good Bull Investments

 

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Connect with Lorren Capital, LLC. for syndicated multifamily investments, https://lorrencapital.com/.

To learn more about me, visit my LinkedIn profile, and connect with me.