Investor Resources

After-Repair Value

The estimated market value of a property after all planned renovations are completed. Lenders use ARV to calculate maximum loan amounts on fix-and-flip deals.

Loan-to-Cost

The ratio of the loan amount to the total project cost (purchase price plus renovation budget). A 90% LTC means the lender finances 90% of your all-in cost.

Loan-to-Value

The ratio of the loan amount to the current appraised value of the property. Used primarily for rental and bridge loans where there is an existing value.

Debt Service Coverage Ratio

The ratio of a property's annual net operating income to its annual debt obligations. A DSCR of 1.25 means the property generates 25% more income than needed to cover the loan payment.

Bridge Loan

A short-term loan (typically 6–24 months) that bridges the gap between an immediate capital need and long-term financing. Common for acquisitions pending stabilization or refinance.

Hard Money Loan

An asset-based loan secured by real property. Hard money loans are issued by private lenders rather than banks and are known for speed and flexibility over traditional underwriting.

Private Lending

Financing provided by non-bank, private capital sources. Private lenders offer more flexible terms, faster closings, and asset-based underwriting compared to conventional lenders.

Draw Request

A formal request by the borrower to receive a portion of their construction or renovation loan funds. Draws are typically released after a site inspection confirms work completion.

Seasoning Requirement

The minimum period of time a borrower must have owned or financed a property before they can refinance or sell. Many lenders require 3–12 months of seasoning.

Exit Strategy

The planned method for repaying the loan at maturity. Common exit strategies include selling the property (fix-and-flip), refinancing into permanent financing (BRRRR), or using cash reserves.