Six numbers on a term sheet that decide the deal
Most term sheets fit on one page. Six of the numbers on that page do almost all the work, and how they interact matters more than any one of them in isolation.
Six numbers, in order of importance
A term sheet from a private lender usually fits on one page. Twenty fields or so.
Six of them do almost all the work.
This is a working guide to the ones we tell every borrower to read first, in the order they actually matter, with the math that makes them tradeoffs instead of standalone line items.
What's the most common mistake on a term sheet?
The most common mistake we see borrowers make on a term sheet is reading the rate first and stopping there.
The rate is in the middle of the priority list, not the top.
What kills more deals than rate is leverage that is too thin for the actual cost stack, a term that does not match the exit timeline, or a prepay structure that punishes the most likely outcome.
So when a borrower compares two term sheets and says "this one is cheaper because the rate is lower," they often mean the headline rate is lower while one of the other five numbers is quietly making the deal worse.
Read all six. Read them as a system.
1. Loan-to-Value and Loan-to-Cost
LTV and LTC determine how much of the deal you have to bring yourself. They are the first number on the page for a reason.
A program that quotes 75 percent LTV on an after-repair value sounds like more leverage than a program that quotes 65 percent of cost. Sometimes it is. Often it is not. Run the math on your actual deal, not the headline.
Example. $750k ARV, $480k purchase, $90k rehab, total cost $570k. A 75 percent LTV product gives you $562.5k. A 65 percent LTC product gives you $370.5k.
Same deal, two products, $192k difference in cash required at close.
This is the first place to compare. Always.
The same deal, side by side:
| Same deal, two products | 75% LTV product | 65% LTC product |
|---|---|---|
| Loan basis | $750k after-repair value | $570k total cost |
| Loan amount | $562.5k | $370.5k |
| Cash required at close | $7.5k | $199.5k |
2. Rate, and what it means with points
Rate gets the most attention. It deserves the second-most.
A 10.5 percent rate with 2 points is not always cheaper than an 11.5 percent rate with 1 point. It depends entirely on how long the loan is outstanding.
On a 12-month bridge that you actually hold for five months, points dominate. On an 18-month construction loan that you hold for 14, rate dominates.
Run the all-in cost at your realistic timeline, not the worst case. Then compare. The cheapest-looking term sheet often becomes the most expensive once you map it to how long the money is actually working.
3. Term and assumed exit
A 12-month term on a fix-and-flip you expect to be out of in five months is fine. A 12-month term on a construction project that needs 14 months of build plus a 60-day refi window is not.
Match the term to the realistic exit, plus a buffer. If the term is too short, you will be negotiating an extension under pressure, and extensions are almost always more expensive than what you would have paid to get the right term up front.
The borrower's question to ask: if the build runs 90 days long and the refi takes 45 days, am I still inside this term, or am I scrambling?
If the answer is scrambling, the term is wrong.
Why read term-sheet numbers together, not separately?
Half of every term sheet decision is the relationship between two numbers, not the value of any one.
Points and term. Rate and amortization. LTV and reserves. Prepay and exit window.
The most expensive mistake on a private lending term sheet is reading each number in isolation, picking the cheapest looking one, and missing that two of them work against each other.
Read them as a system. Always.
4, 5, 6. Prepay, draws, and recourse
Prepay. If your most likely exit is in month six of a 12-month loan, a six-month prepay penalty is the same as the loan having a six-month higher carrying cost. Run that math.
Draws. On a construction product, how many draws, how big, what triggers each one, how long between request and wire. Slow draws turn into hidden carry, you are paying interest on capital you cannot yet deploy.
Recourse. Most private bridge and fix-and-flip products are non-recourse with carve-outs. Read the carve-outs. Fraud is universal. But some lenders carve out cost overruns or scope changes, which can quietly convert a non-recourse loan into something different.
These three are usually the last paragraph on the term sheet, which is the most common place borrowers stop reading carefully.
What should you check before signing a term sheet?
Before signing a term sheet, build a one-page cost-to-close: loan amount, your cash required, and total all-in cost over your realistic timeline. Then do the same one-pager for any competing offer.
Now compare the all-in numbers. Not the rates. Not the points. The all-ins.
If you do not have time to build that page, the two-minute fit-check on our site will give you a directional read for free, the same kind of math, just less of it.
The programs behind the numbers.
Construction Loans
Capital structured around draws, trades, and real site sequencing.
See typical termsFix & Flip Loans
Acquisition + rehab capital sized around ARV and exit strategy.
See typical termsBridge Loans
Bridge capital up to 75% LTV, a typical ~14-business-day close for qualified, complete files.
See typical terms
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NexWin Capital Corp. (NMLS ID 2743839 · DFPI License No. 60DBO-211586) brokers loans through licensed lending partners. All funding is subject to borrower profile, collateral, documentation, and lender criteria. Nothing on this page is an offer or commitment to lend. Rates, terms, and program availability vary and may change without notice.