Knowledge Center
Plain-English definitions for the terms every investor, borrower, and broker needs to know — from DSCR and ARV to draw schedules and cap rates.
A DSCR loan — short for Debt Service Coverage Ratio loan — is a type of real estate investment mortgage that q…
A fix and flip loan is short-term, asset-based financing designed specifically for real estate investors who p…
A bridge loan in commercial real estate is short-term financing — typically 12 to 36 months — used to 'bridge …
A hard money loan is a type of short-term, asset-based real estate financing provided by private lenders rathe…
Ground-up construction financing provides capital to build a new structure on vacant land or on a lot where an…
When evaluating a real estate investment loan, three ratios matter most: Loan-to-Value (LTV), Loan-to-Cost (LT…
Capitalization rate — universally called the 'cap rate' — is the most widely used metric in commercial real es…
A blanket loan — also called a portfolio loan — is a single mortgage that covers two or more properties under …
An interest reserve is a portion of a real estate loan — set aside at closing — that is specifically designate…
A draw schedule is the predetermined plan for disbursing construction loan funds in stages — called draws — as…