Gator Method: The Beginner’s Guide to Fast Real Estate Deals

In real estate, speed turns good opportunities into closed deals. If you’ve ever had a contract stall over a tiny cash hurdle, the Gator Method can change that. Instead of raising big loans or taking on long rehabs, this approach supplies small, short-term funds exactly where deals get stuck—usually the earnest money deposit or a brief closing gap—so assignments and quick double closes keep moving and you collect a clearly agreed fee at close.

In this guide, we’ll show you exactly how to use the Gator Method safely: what it is, how it works, the paperwork, roles, risks, math, and simple systems that protect your money and time. You’ll get checklists, examples, and a mini calculator, plus practical tips to find partners, avoid red flags, and know when not to use it, everything a beginner needs to close faster with confidence. Feel free to use the jump links below to navigate to what interests you the most:

• What Is the Gator Method?
• How the Gator Method Works (Step-by-Step)
• Roles & Responsibilities (Wholesaler, Gator Lender, End Buyer, Title)
• Deal Structures & Example Math
• Best Use Cases (and When Not to Use It)
• Legal, Compliance & Ethics
• Risk Management & Red Flags
• Underwriting a Gator Deal (Quick Diligence)
• Documents & Templates
• Example Deal Breakdown & Simple Calculator
• Finding Deals & Partners for Gator Opportunities
• Operations: Systems, Banking & Fraud Prevention
• Taxes & Accounting Basics
• Alternatives & Comparisons
• Gator Method FAQs
• Final Thoughts on the Gator Method

---

---

---

What Is the Gator Method?

The Gator Method is a simple, fast way to keep deals moving in real estate investing. Instead of taking on big loans or long rehabs, it supplies short-term, small-ticket capital—often in the form of the earnest money deposit (EMD) or a brief closing gap—so a signed contract can assign or double close. Funds are documented, held, or routed through escrow, and repaid at close with a clearly agreed fee.

Popularized by Pace Morby, the Gator Method exists to fix tiny cash bottlenecks that stall deals. It’s not bird-dogging, which is simply finding a lead for a referral fee with no money put in. It’s not private or hard money, which are bigger, months-long rehab loans secured by the property. And while it touches transactional funding, that’s usually full, same-day A→B→C money for a double close—whereas the Gator Method is micro-funding (often just the EMD) for days, built on speed and clean, written repayment at close.

At its core are four pieces: the roles (wholesaler, gator funder, end buyer, title/escrow), the micro-capital, quick timelines, and written repayment triggers tied to assignment or closing.

• Roles: Wholesaler moves the deal; gator funder advances small, short-term capital; title/escrow verifies and disburses; end buyer closes.
• Use cases: EMD help, brief “gap” at close, or a fast double close.
• Timing: Usually days, not months. Speed and responsiveness matter.
• Documentation: Simple funding/JV agreement, escrow instructions, fee/repayment terms.
• Repayment: Automatically at assignment or closing, per written instructions.

 

New to Real Estate? Start Here First

If you haven’t closed your first deal yet, diving straight into the Gator Method can be a bit intimidating. Before you take a single step, lock in a simple plan you can execute this week.

That’s what the Ultimate Investor Program is built for—we show you everything you need to know to start investing. Once you're comfortable, the Gator Method becomes an accelerator, not an obstacle.

Start for free: Grab our FREE Ultimate Guide to Start Real Estate Investing and take the first step—no license required.

How the Gator Method Works (Step-by-Step)

Here is the step-by-step to run the Gator Method from first call to repayment. Follow the sequence, use written instructions, and keep communication tight with the closing company.

1. Spot a real deal: Get the basic facts: price, ARV, repairs, seller timeline, and whether the contract is assignable. Line up at least one serious buyer and request proof of funds.
2. Do quick underwriting: Confirm rough ARV calculations and MAO, check for obvious title or lien issues, and confirm the contract allows an assignment of contract. If anything looks off, pause here.
3. Sign the funding/JV agreement: State the amount (often the EMD), fee, repayment trigger (assignment or closing), deadline, and where funds will be held. Keep it short and clear.
4. Open with title/escrow: Send the fully executed purchase agreement, funding/JV contract agreement, and written disbursement instructions. Ask the closing company to confirm receipt, file number, and wire details.
5. Wire the money safely: Call the closing company to verify wire instructions, then send the funds. Request same-day confirmation that the deposit posted to the file.
6. Execute the exit: Either assign to the end buyer or complete a double close. Keep your buyer, agent (if any), and the closing company synced on dates, documents, and funding.
7. Get repaid at close: Escrow disburses your principal plus fee per the written instructions. Confirm the disbursement statement and receipt.

• Typical timeline:
  • 0–24 hours: Verify deal, buyer interest, contract terms. Draft funding/JV agreement.
  • 24–48 hours: Open file, send docs, confirm wire details, fund the deposit.
  • 48–72 hours: Title clears basic items; buyer finalizes logistics and funds.
  • 72–120 hours: Assignment or closing; escrow repays you per instructions.
• Milestones and decision gates:
  • The contract is assignable and signed by all parties.
  • Buyer provides proof of funds and agrees to the timeline in writing.
  • The closing company confirms the file number and disbursement instructions.
  • No obvious title liens that would delay closing beyond your term.
• How funds move (simple flow):
  • You wire funds → closing company holds in the file.
  • Deal assigns or closes → closing company releases your principal + fee.
  • If the deal fails within the term, follow the written fallback in your agreement.

Roles & Responsibilities (Wholesaler, Gator Lender, End Buyer, Title)

Every smooth Gator deal has four players working in sync. Use the lists below to keep responsibilities, timing, and hand-offs crystal clear for beginners and pros alike:

Wholesaler

• Own the deal flow: Source the contract, confirm it is assignable, and line up a serious buyer.
• Move fast: Reply the same day (ideally within hours) on docs, signatures, and questions.
• Send the package: Purchase agreement, assignment addendum draft, buyer details, timeline, and title company info.
• Coordinate title: Introduce all parties in one email; ask the title to open a file and confirm wire instructions.
• Keep everyone updated: Daily status until EMD posts; then milestone updates (clear-to-close, scheduled signing).
• Protect the funder: Ensure written disbursement instructions include repayment of principal + fee at closing.

Gator lender

• Verify before funding: Review the contract, assignment plan, and buyer timeline; confirm the closing company details.
• Simple paperwork: Sign a short funding/JV agreement with amount, fee, term, and repayment trigger at assignment or closing.
• Wire safely: Call title to verify wire instructions; send funds to escrow only (never to individuals).
• Track the file: Request written confirmation that the deposit posted; ask for the settlement statement before closing.
• Respond quickly: Same-day responses on approvals and wire timing to keep momentum.

End buyer

• Commit in writing: Sign the assignment or purchase docs and confirm the close date and contingencies.
• Show capacity: Provide proof of funds and arrange their own deposit/funds per the contract.
• Be reachable: Same-day replies on title questions, insurance, and any lender items (if applicable).
• Close on time: Deliver funds to close as scheduled; notify the team if something slips.

Title/Escrow

• Open the file: Acknowledge receipt, assign a file number, and share verified wire instructions.
• Run prelim title: Surface liens, HOA dues, payoffs, and any curative items early.
• Hold and disburse: Receive EMD, track all deposits, and follow written disbursement instructions at closing.
• Communicate clearly: The escrow officer confirms milestones (deposit received, clear-to-close, scheduled signings) and sends the settlement statement for review.

Communication cadence & document hand-offs

• Kickoff email (Day 0): Wholesaler CCs all parties; attach purchase contract and funding/JV agreement; request file number and wire details.
• Deposit confirmation (Day 1–2): Gator lender requests written confirmation the EMD posted to the file.
• Mid-stream check (Day 2–3): Title shares any curative items; buyer confirms funds plan and closing logistics.
• Pre-close packet (Day 3–5): Title circulates draft settlement statement showing repayment line for the funder; everyone confirms amounts and signatures.

 

Deal Structures & Example Math

There isn’t one “right” deal structure. You pick the payout style that matches time at risk, complexity, and certainty of closing. Below are the common options you’ll see in Gator deals and when each makes sense.

 

Deal Structure Options at a Glance

Structure	When	Pros	Cons
Flat fee	Simple, short timelines	Easy to explain; fixed	Poor fit if delays stack
Per-diem interest	Uncertain close date	Scales with time at risk	Math changes daily
Profit share	Large assignment spreads	Upside participation	Uncertain payout size
Equity kicker	Subto/hold strategies	Long-term upside	Delayed liquidity

 

Example Math (using a $5,000 EMD)

• Flat fee: Same-day close → $150 fee; 3-day close → $300; 7-day close → $500. Effective ROI on 3 days = $300 / $5,000 = 6% for that period (don’t annualize; just compare options).
• Per-diem interest: $25/day on $5,000. Same-day → $25; 3-day → $75; 7-day → $175. Good when timelines might slip.
• Profit share: 15% profit share on an $8,000 assignment = $1,200. If the assignment ends up $2,000, payout = $300.
• Equity kicker: 5% equity in a Subto hold. If future cash-out or refi pays $10,000 to the JV, your 5% = $500 (timing uncertain).

Breakeven & Tradeoffs

• Wholesaler net check: Assignment fee − funder compensation − any extra closing costs should still meet your target profit.
• Delay risk: If closing may drift, avoid a flat fee that under-prices time at risk; per-diem can be fairer for both sides.
• Upside vs. certainty: Profit share or equity can pay more on big wins, but the amount and timing are uncertain.

 

Best Use Cases (and When Not to Use It)

The Gator Method shines when a good deal is stuck for a small, short-term cash need. Think speed, simple paperwork, and a clear path to closing.

Great fits

• High-velocity assignment deals (selling your position in a signed contract), where a small EMD unlocks escrow.
• Pre-foreclosure timelines require fast action to secure the contract and schedule closing.
• Probate or absentee-seller situations where everyone agrees to the price but needs funds in escrow to move forward.
• Tired landlords and vacant properties with motivated sellers and straightforward terms.
• Pairing strategies: Subto (taking over payments) when a small down payment/EMD bridges the gap; novation (replacing the original agreement) when the seller consents to a retail exit; double close (back-to-back closings) when you want clean separation between A→B and B→C.
• Deals with responsive title/escrow, a verified end buyer, and simple curative items (if any).

Avoid when

• Long rehabs or open-ended projects where time and costs are hard to predict.
• Uncertain buyer or no proof of funds; daisy chains with unclear decision-makers.
• Non-assignable contracts and no plan for a clean alternative (no novation or double close option).
• Unresolved title issues (major liens, cloudy ownership, HOA/judgments) that won’t cure within your short term.
• Sellers or partners who refuse written instructions, try to bypass escrow, or won’t align on timelines.

Legal, Compliance & Ethics

*Laws vary by state. Short-term advances can trigger lending rules and usury limits, and profit-based or equity payouts can implicate securities concerns. Keep all funds and repayments flowing through escrow, use clear written instructions, verify wires by phone to prevent wire fraud, and confirm any assignment restrictions before you fund. Not legal advice—consult a licensed real estate attorney and a CPA for your specific situation.

Risk Management & Red Flags

Treat small, short-term advances like a mini lending business. Your job is to protect the principal first, then earn the fee. The checklist below keeps risk low and momentum high.

Main risks to watch

• Non-refundable EMD loss if the deal is canceled after your deposit is posted.
• Daisy-chain deals: multiple middlemen and no direct line to the actual buyer or seller.
• Title cloud: liens, HOA/judgments, probate issues, or ownership disputes that delay closing.
• Unverified buyer: no proof of funds, vague entity details, or slow responses on basics.
• Wire risk: spoofed emails, changed instructions, or requests to send funds to individuals.

How to reduce risk (simple safeguards)

• Deal verification checklist: Assignable contract (or plan for double close/novation), buyer proof of funds, and written close date.
• Escrow-held funds only: Wire to the closing company; never to people. Call the office to confirm instructions.
• Direct contact with title/escrow: Get a file number, a deposit receipt, and a draft settlement statement showing your repayment line.
• Clear paperwork: One-page funding/JV agreement with amount, fee, term, and repayment trigger at assignment/closing.
• Response times: Same-day replies from wholesaler, buyer, and title. Slow comms usually predict slow closings.

Fallback plans if the buyer slips

• Line up a backup buyer before funding; have at least one ready to step in within 24–48 hours.
• Short extensions: Ask for a written 48–72-hour extension; switch to per-diem compensation if time drifts.
• Alternative exits: Convert to a double close or consider a novation if assignment pricing blocks the deal.
• Escrow instructions: Keep repayment language in the file so your fee is protected when the exit changes.

 

Underwriting a Gator Deal (Quick Diligence)

Think of underwriting as a fast safety check before you send a dollar. You’re confirming: the numbers make sense, the contract can close, and the title can pay you back at the end.

Snapshot checks (5–10 minutes)

• ARV estimate: Pull 3–5 recent, similar real estate comps within ~0.5–1.0 miles; similar beds/baths/sqft and condition.
• Repairs: Classify quickly:
  • Light: paint, flooring, fixtures.
  • Medium: kitchens/baths, minor systems.
  • Heavy: roof, foundation, major systems.
• Equity cushion: Roughly confirm there’s enough spread for the buyer to proceed after fees and repairs.
• MAO math (rule-of-thumb): MAO = (ARV × 0.70) − Repairs − Assignment/Closing Fees

Contract review (can we actually close?)

• Assignable: Confirm that assignment is allowed or that you have a clean backup (double close/novation).
• Disclosures & fees: Your funding fee and repayment appear in writing (funding/JV + escrow instructions).
• Buyer readiness: Get proof of funds and a written agreement to the close date and contingencies.
• Dates: Make sure your funding term comfortably covers the scheduled close (with a small buffer).

Title touch (one quick email or call)

• Open order: Ask to open the file and provide a file number.
• Lien search: Request an early read on obvious liens, HOA balances, judgments, or probate flags.
• Payoff quotes: If known (mortgage/HOA), confirm they can obtain what’s needed within the timeline.
• Settlement draft: Ensure your principal + fee appear on the settlement statement before closing.

Green-light checklist (fund with confidence)

• Numbers pencil (quick ARV/MAO check shows real spread).
• Assignment path or a clean alternative is set in writing.
• Title confirms file open and no show-stopper issues so far.
• Repayment instructions are in the file; all parties are responsive.

---

*For in-depth training on real estate investing, Real Estate Skills offers extensive courses to get you ready to make your first investment! Attend our FREE Webinar Training and gain insider knowledge, expert strategies, and essential skills to make the most of every real estate opportunity that comes your way!

---

Documents & Templates

Keep your paperwork short, clear, and consistent. The goal is to show who does what, where the money sits (escrow), and exactly when the repayment happens. Below are the core documents and beginner-friendly clause examples you can adapt with your attorney.

Essential docs (what they do)

• JV agreement: Pairs the wholesaler and funder for a single deal; defines roles, fee split (if any), timelines, and who talks to title.
• Short-term funding agreement / promissory note: States the amount advanced (often the EMD), fee or per-diem, due date, and remedy if the deal doesn’t close.
• Assignment: Transfers contractual interest to the end buyer (if using an assignment exit) with a clear price and closing date.
• Escrow instructions: Tells the closing company to hold funds and disburse principal + fee to the funder at closing.
• Payoff / repayment authorization: Let's title place the funder’s payout as a line item on the settlement statement.

Key clauses to include

• Repayment triggers: “at assignment” or “at closing,” whichever occurs first (or specify one).
• Fees: Fixed fee or per-diem; state calendar days and the daily amount if applicable.
• Default remedies: What happens if the deal misses the deadline (extension option, per-diem switch, or buyer substitution).
• Role disclosures: Who is the funder vs wholesaler; no one is acting as broker, lender of record, or advisor (unless licensed and disclosed).
• Escrow-only handling: All funds sent to and paid from licensed escrow/title; no payments to individuals.

Mini clause examples (for attorney review)

Funding Agreement: Amount, Fee, and Repayment
Amount: Funder will advance $5,000 ("Advance") to Escrow File #[FileNumber].
Fee: Borrower will pay a flat fee of $300 ("Fee").
Repayment: Escrow will repay the Advance + Fee to Funder at the earlier of (a) assignment closing
or (b) purchase closing, from closing proceeds, per settlement statement line item.

Funding Agreement: Per-Diem Option
If closing occurs after [Date], compensation converts to $25 per calendar day
from [Date] until the day before closing, capped at $500 total unless extended in writing.

JV Agreement: Roles & Disclosures
Parties acknowledge this is a limited, deal-specific joint venture.
Funder provides a short-term cash advance; Wholesaler manages buyer/dispositions and coordinates with Escrow.
Neither party is acting as a broker, lender of record, attorney, or tax advisor.

Escrow Instructions: Disbursement
Escrow is authorized and directed to:
(1) Receive the $5,000 Advance into File #[FileNumber];
(2) Upon successful closing, disburse $5,300 to Funder (Advance + Fee) via wire per instructions on file;
(3) Reflect this disbursement as a separate line item on the settlement statement.

Payoff/Repayment Authorization
Borrower authorizes Escrow to include a line item "Repayment to Funder (Advance + Fee): $5,300"
and to transmit said funds to Funder at closing. This authorization survives amendments to the contract
and applies to assignment or double-close exits connected to File #[FileNumber].

Assignment: Simple Price & Timeline
Assignor assigns all rights in Purchase Contract dated [Date] to Assignee for $10,000.
Closing shall occur on or before [Date] at [Escrow Company]. Assignee to deposit required funds and close per contract.

ESign & wire verification (simple steps)

• ESign: Use a reputable e-signature tool; require initials on key money/fee pages; lock PDFs after signing.
• File naming: Include property address + doc type + date (e.g., 123Main-FundingAgreement-2025-09-15.pdf).
• Wire call-back: Obtain wire instructions on company letterhead; call the escrow office number from Google or the website (not from an email) to confirm.
• One thread: Keep a single email thread with title/escrow for all final documents and approvals.
• Settlement draft: Ask for the draft HUD/CD showing your line item before closing day.

*This section is for education only and not legal advice. Have a qualified attorney tailor these templates and clauses to your state and deal.

Example Deal Breakdown & Simple Calculator

Use the examples below to see how a $5,000EMD plays out across three exits. Then plug your own numbers into the mini deal calculator formulas to estimate funder fees, your net, and period ROI.

 

Inputs & Outputs (Gator Micro-Funding on $5,000 EMD)

Scenario	Key Inputs	Funder Compensation	Net to Wholesaler	Notes
Assignment	$5k EMD; 3 days; assignment fee $10,000	Flat fee $300	$9,700 (10,000 − 300)	Period ROI for funder = 300/5,000 = 6%
Double Close (Sprint)	$5k EMD; 7 days; spread $12,000	Per-diem $25/day → $175	$11,825 (12,000 − 175)	Funder period ROI ≈ 175/5,000 = 3.5%
Subto Hybrid	$5k EMD/DP; 10 days; wholesaler fee $4,000	$150 now + 5% equity	$3,850 at close (4,000 − 150)	Equity kicker pays later (refi/sale/cash-out)

 

Quick sensitivity & breakeven

• Delay days: If the sprint slips from 3 → 7 days on per-diem $25/day, fee grows from $75 → $175; your net drops accordingly.
• Lower assignment fee: If $10,000 drops to $7,500, your net = 7,500 − 300 = $7,200; confirm that still meets your target.
• Breakeven idea: Minimum fee needed = funder comp + extra closing costs + your target profit.

Mini formulas (paste into a sheet)

// Inputs (examples)
Advance = 5000
FlatFee = 300
PerDiem = 25
Days = 7
AssignmentFee = 10000
SpreadDoubleClose = 12000

// Funder period ROI (no annualization)
ROI = Fee / Advance

// Per-diem fee
Fee = PerDiem * Days

// Net to wholesaler (assignment)
Net = AssignmentFee - Fee

// Net to wholesaler (double close)
Net = SpreadDoubleClose - Fee

// Breakeven assignment fee
Breakeven_AssignmentFee = TargetProfit + Fee + ExtraClosingCosts

 

Finding Deals & Partners for Gator Opportunities

You’ll find the best Gator opportunities where fast-moving deals live. Start local, build a tight circle, and show people you’re reliable, safe, and fast.

Where do the opportunities come from?

• Wholesalers: The front line. Meet them at local meetups, walk-throughs, and by replying to their email blasts.
• Title/escrow reps: They see assignments and double closes daily; let them know you can cover EMDs safely (escrow-only wires).
• REI meetups: Introduce yourself, ask who’s moving 3–5+ contracts/month, and offer a clear way you can help.
• Investor Facebook groups: Answer questions, post helpful checklists, and share a short one-liner about your service.
• Wholesaler email/text blasts: Join every dispo list in your market so you see active deals first.

How to present yourself (simple, professional, safe)

• Create a one-page credibility packet: who you are, deal criteria (EMD only, escrow-only), fee menu (flat/per-diem), and turnaround time (e.g., 24–48 hours after file is open).
• Add: ID/business name, W-9, wire-safety policy (you always confirm by phone with title), and 1–2 brief references.
• Set limits up front: max EMD, markets you cover, assignment vs double-close comfort, docs you require before funding.
• State what you won’t fund: rehab budgets, arrears without a plan, payments to individuals, or anything outside escrow.

Posting & messaging guidelines (keep it compliant)

• Be factual, not hype-y: “Can cover EMD via licensed escrow. Flat fee or per-diem. 24–48h after file open.”
• No guarantees or promissory language about returns; avoid public “invest with me” pitches.
• Say “escrow-only wires, verified by phone.” Never ask people to send you money.
• Invite DMs to share property address, contract status, buyer info, and title contact.

---

---

Operations: Systems, Banking & Fraud Prevention

Good operations make small, fast deals feel simple. Set up basic tools, tighten your money-handling steps, and keep clean records so anyone on your team can pick up a file and know exactly what to do next.

Tech stack (simple and reliable)

• Contact & deals: A beginner-friendly CRM to track sellers, buyers, title contacts, dates, and fees.
• E-sign: Use a reputable e-signature app with required initials on money/fee pages and automatic PDF copies to your shared folder.
• Secure storage: One cloud folder per property; subfolders: Contract, Title, Funding, Settlement, ID & W-9.
• Call/SMS & email: A single shared inbox or number for deal threads so updates don’t get lost.
• Tasking: A simple checklist with due dates (open file, confirm wire, deposit posted, settlement draft, disbursement verified).

Banking operations (clean, repeatable steps)

• Wire templates: Pre-saved beneficiary profiles for your most-used title companies to speed up funding while reducing typos.
• Call-back verification: Before every wire, call the escrow office using the number on their website to confirm instructions match your sheet.
• Dual-approval: Use dual-control on outgoing wires—one person prepares, another approves.
• Same-day confirmations: Ask for a written confirmation that the deposit was posted to the correct file number.
• Settlement check: Require a draft HUD/CD showing your principal + fee as a line item before closing day.

Recordkeeping & naming conventions

• One thread per deal: Subject format: [Property] — [Title File #] — Funding & Closing. Keep everyone CC’d (wholesaler, buyer, escrow).
• File names: 123Main-PurchaseContract-2025-09-15.pdf, 123Main-FundingAgreement-$5,000-2025-09-15.pdf, 123Main-WireReceipt-2025-09-16.pdf, 123Main-SettlementDraft-v1.pdf.
• Receipts & proofs: Save: wire receipt, deposit confirmation from title, settlement drafts, final HUD/CD, and disbursement confirmation.
• Simple logs: A one-page timeline (date, action, who confirmed). This becomes your basic audit trail.

 

Taxes & Accounting Basics

Keep taxes simple by separating business money, saving every document, and labeling income correctly. The tax treatment of your payout depends on how the agreement is written and how the closing statement reports it.

• How payouts are typically treated:
  • Interest-style fee: If your agreement labels the payout as interest and it is reported as such on the settlement statement, it is usually interest income and may be reported to you on a 1099-INT.
  • Service-style fee: If your payout is a flat fee for providing access to funds or coordination services, it is commonly ordinary income and may be reported to you on a 1099-NEC.
  • JV profits: If you truly share profits or equity in a documented joint venture, payouts may be treated as distributive share based on the entity structure and agreement.
• Documentation to keep for your files:
  • Fully executed funding or JV agreement, assignment or purchase contract, and escrow instructions showing your repayment.
  • Wire receipt, title deposit confirmation, and the final HUD/CD with your line item.
  • W-9 provided to title, plus any 1099s you receive after year-end.
• Basic bookkeeping setup:
  • Separate business bank account and a simple chart of accounts: Advances Receivable, Fee Income, Interest Income, Bank Service Charges.
  • Track each deal on a one-page ledger: dates funded and repaid, fee type, deal ID, and attached PDFs.
  • Reconcile monthly so your statements match your ledger and stored documents.
• Entity hygiene and professional help:
  • Use an EIN, keep funds out of personal accounts, and avoid commingling.
  • Ask a licensed CPA to review your template agreements and how the title labels your payout on the settlement statement.
  • Confirm quarterly estimated taxes and any state filing requirements for your entity.

This is educational information, not tax advice. Speak with a qualified CPA or tax attorney about your specific situation.

Alternatives & Comparisons

Choose the tool that matches your timeline, capital gap, and risk. Use the table to see how each model stacks up on speed, cost, and effort, then follow the simple decision framework below.

 

Model Comparison: Speed, Cost, Risk, Best Use

Model	Speed	Cost	Risk	Best for
Gator Method	Fast (24–120 hours)	Flat fee or per-diem on small advances	Low–moderate (short term; EMD at risk if deal dies)	EMD/gap coverage to keep assignments or quick double closes on track
Private money	Days–weeks	Interest + points; negotiated terms	Moderate (carry costs; longer hold)	Light rehabs, short holds when you need more than a deposit
Hard money	Days	Higher rates + points; draws	Higher (leverage + rehab risk)	Fix-and-flip with defined scope and exit
Transactional funding	Very fast (same/next day)	Short fee on purchase price	Low when same-day A→B→C	Back-to-back closings when assignment isn’t allowed
Bird-dogging	Fast (lead handoff)	Low (finder’s fee only)	Low (no capital at risk)	Newbies monetizing leads without funding or contracts
Standard wholesaling	Varies (deal-dependent)	Low capital; marketing/time heavy	Low–moderate (deal fall-through; timelines)	Contract-to-buyer assignments where pricing and terms align

 

Simple decision framework

• Tiny, urgent gap? Use Gator to cover EMD or a brief closing shortage fast.
• Assignment blocked? Consider a quick transactional funding double close.
• Need rehab capital? Use private money for lighter projects; hard money for larger, structured rehabs.
• Just getting started? Bird-dog for fees while you learn contracts and buyers.
• Have buyers + contracts? Build your wholesaling pipeline and add Gator as a fail-safe for deposits.

---

---

Gator Method FAQs

This quick FAQ answers the most common questions about the Gator Method, including legality, required capital, typical fees, timelines, documents, and risks. Skim these bite-size answers to get oriented fast, then dive deeper into the sections above as needed.

Is the Gator Method legal?

It can be when structured correctly with escrow-only funds, clear paperwork, and state-compliant terms. Laws vary, so have a real estate attorney review your setup.

How much capital do I need to start?

Many beginners cover small deposits—often $1,000–$10,000—focused on the EMD or a brief closing gap. Start modest, prove your process, then scale.

What are typical gator lender fees?

Gator lender fees are usually a flat amount (e.g., $150–$500) or a per-diem (e.g., $25/day) for short holds. Some deals use small profit shares or equity kickers.

What documents do I need?

A short funding/JV agreement, escrow instructions showing your repayment line, the purchase/assignment docs, and basic ID/W-9. Ask title for a draft settlement statement before closing.

What’s the usual timeline?

The typical timeline is 24–120 hours from file open to repayment at assignment or closing. Faster files require same-day responses from all parties.

When does it fail or go wrong?

Non-assignable contracts with no backup plan, title clouds, daisy chains, or unverified buyers. Delays and poor communication also sink otherwise good deals.

How is this different from lending or hard money?

It’s micro, short-term, and escrow-only—often just covering the deposit—versus larger, longer, rehab loans. That said, fees or profit shares can raise lending/usury questions, so get legal guidance.

Does EMD funding go to escrow or to individuals?

EMD funding should go to licensed escrow/title only—never to people. Always verify wire instructions by phone using the number on the company’s website.

Final Thoughts on the Gator Method

The Gator Method is a speed tool, not a shortcut. It works when your underwriting is honest, your documents are clear, your funds move through escrow, and your follow-through is tight. Keep money protected, keep instructions in writing, and stay responsive with title and buyers so small cash gaps don’t stall otherwise solid real estate deals.

Start small and controlled: fund one simple EMD, confirm flawless disbursement, then scale with checklists, a basic CRM, and clean files. Track days at risk, fee per deal, and fall-through rate, and keep compliance front and center—truthful messaging, privacy, and wire-safety every time.

---

---

*Disclosure: Real Estate Skills is not a law firm, and the information contained here does not constitute legal advice. You should consult with an attorney before making any legal conclusions. The information presented here is educational in nature. All investments involve risks, and the past performance of an investment, industry, sector, and/or market does not guarantee future returns or results. Investors are responsible for any investment decision they make. Such decisions should be based on an evaluation of their financial situation, investment objectives, risk tolerance, and liquidity needs.