Real estate lending, term by term.

Advances against invoices you've issued but haven't been paid on yet. Turns 60-day retention into cash today.

What the property will be worth once all the rehab work is complete, validated by an appraiser familiar with comps in the local market.

Example: Buy at $300K, rehab $75K, ARV $550K → loan sized against $550K.

How long the bridge is in place before you exit. Shorter terms price better, a 12-month bridge usually beats a 24-month one on rate.

What secures the loan, equipment, receivables, or sometimes the business itself (blanket lien). Collateral type drives rate and structure.

The ratio of the property's monthly rental income to its monthly debt payment (PITIA, principal, interest, taxes, insurance, association dues). 1.0x means income exactly covers debt.

Example: $4,200 rent ÷ $3,360 PITIA = 1.25 DSCR.

Construction loans release funds in stages as work is completed and inspected. A typical draw schedule has 5–10 stages mapped to milestones.

Example: Foundation → 15%, framing → 20%, MEP rough-in → 15%, etc.

How the bridge gets paid off. Lenders require a clear exit up front, sale, refinance to permanent, stabilization, or portfolio refi.

The right to extend the term, usually 6 months, for a fee. Useful insurance if your exit slips.

Fixed rate for the first 5, 7, or 10 years, then adjusts annually. Often prices below a full 30-year fixed and makes sense for hold-and-refi plans.

Some DSCR loans offer 10-year interest-only payments. Lower monthly cost, stronger cash flow, but no principal paydown during the I/O period.

Revolving credit you draw on as needed and repay down. You only pay interest on what you've drawn. Great for working capital and receivables timing.

Ongoing requirements, minimum balance, financial reporting, debt-to-equity caps, baked into the loan agreement.

The percentage of total project cost, land + hard costs + soft costs, the lender will finance. An 85% LTC means you bring 15% equity, the lender funds the rest.

Example: On a $1.5M project, 85% LTC = up to $1.275M financed.

Some lenders split pricing between purchase LTV and rehab funding. You might see 85% LTP + 100% of rehab.

The percentage of the finished property's appraised value that the lender will lend against. Often expressed as LTV of ARV (after-repair value).

Example: If the finished home appraises at $2M at 70% LTV max = up to $1.4M cap.

A one-time fee at closing expressed as a percentage of the loan, e.g. 2 points on a $400K loan = $8K.

All-in monthly housing cost: principal, interest, taxes, insurance, and HOA. DSCR lenders underwrite against this, not just P&I.

Some bridges have minimum interest periods (e.g. 3-month lockout) before you can pay off without a fee. Worth knowing up front.

Rehab dollars aren't in your account on day one. They sit with the lender and release in draws as you complete work.

Lump-sum financing paid back over a fixed term, 1 to 5 years typical. Good for equipment, expansion, or specific projects.