These loans are short term funds for the purpose acquisition and potentially renovating a real estate asset. Historically referred to as hard money loans.

This loan type is a short-term, non-conforming loan for commercial or residential investment properties, that doesn’t come from traditional lenders, but rather people or private companies that accept property or an asset as collateral.

A “Debt Service Coverage Ratio” mortgage (known as DSCR Mortgage) is the ratio of the properties operating income available to debt servicing for PITIA (Principle, Interest, Taxes, Insurance, Association fees).

This stands for Buy, Rehab, Rent, Refinance, Repeat. Similar to house-flipping, this investment strategy focuses on purchasing properties that are not in good shape and fixing them up.

Loan-to-cost (LTC) compares the financing amount of a commercial real estate project to its cost. LTC is calculated as the loan amount divided by the Purchase price and construction cost.