Investor Lending Glossary
The language of real estate investment financing — defined clearly, with worked examples. From DSCR and LTV to transactional funding, here's what every term means and why it matters to your deal.
Capital Stack
Capital Stack
The layered structure of all the capital financing a deal — from senior debt at the bottom to equity at the top. Each layer's position sets its risk, return, and order of repayment.
Read definition →Cross-Collateralization
Using more than one property to secure a single loan, so each pledged property backs the entire debt. It can unlock more leverage or 100% financing, but ties properties together and raises shared risk.
Read definition →Gap Funding
Short-term capital that covers the 'gap' between what a primary lender funds and the total cash a deal needs — typically the down payment, rehab shortfall, or closing costs on a fix-and-flip.
Read definition →Mezzanine Debt
Subordinate financing that sits between senior debt and equity in the capital stack. It fills the gap above a first mortgage, carries a higher rate, and is often secured by a pledge of ownership interests.
Read definition →Development
Completion Guaranty
A guaranty in which the borrower (or a principal) personally promises the lender that a construction project will be finished — lien-free and on time — even if costs exceed the loan, regardless of the property's value.
Read definition →Entitlement (Land Entitlement)
The legal approvals and permits that grant the right to develop land for a specific use — zoning, subdivision, site plans, variances. Entitled land is more valuable and financeable than raw land.
Read definition →Retainage (Retention)
A portion of each construction payment — commonly 5–10% — withheld until the project is substantially or fully complete, ensuring the contractor finishes the work and corrects any defects before receiving the final money.
Read definition →Zoning
Local government rules dividing land into districts that dictate how each parcel may be used — residential, commercial, industrial — and limits like density, height, and setbacks. Zoning governs what you can legally do with a property.
Read definition →Fix & Flip
Contingency
Two meanings: a budget reserve set aside for unexpected rehab costs (e.g., 10–20%), and a contract condition that lets a buyer exit without penalty if it isn't met. Both protect investors from surprises.
Read definition →Draw Schedule
The plan for releasing rehab funds in stages as construction milestones are completed and inspected, rather than all at once. Standard on fix-and-flip and construction loans.
Read definition →GC (General Contractor)
The licensed professional who manages a construction or rehab project — hiring and coordinating subcontractors, pulling permits, and delivering the scope of work. Lenders may vet your GC on rehab loans.
Read definition →Hard Costs
The tangible, physical costs of a construction or rehab project — materials and labor that go into the building itself. Distinct from soft costs like permits, fees, and financing.
Read definition →Holdback
Loan funds the lender withholds until a condition is met — most commonly the rehab budget, released in draws as work is completed and inspected. The holdback is the un-disbursed portion of the loan.
Read definition →Holding Costs (Carrying Costs)
The ongoing costs of owning a property while you hold it — loan interest, taxes, insurance, utilities. On a flip, holding costs accrue every month until the sale, so a longer timeline directly erodes profit.
Read definition →Interest Reserve
A portion of the loan set aside by the lender to cover the borrower's monthly interest payments during a rehab or bridge period, so the investor isn't paying out of pocket while the property is non-income-producing.
Read definition →Rehab Budget
The total estimated cost to renovate a property — hard costs, soft costs, and contingency. The rehab budget feeds the 70% rule, the ARV appraisal, and the rehab portion of a fix-and-flip loan.
Read definition →Scope of Work (SOW)
A detailed, line-item plan of every repair and improvement in a rehab project, with costs. Lenders require an SOW to set the rehab budget, ARV appraisal, and draw schedule on a fix-and-flip loan.
Read definition →Soft Costs
The intangible costs of a project that don't physically become part of the building — permits, design fees, loan interest and points, insurance, and legal. Easy to underestimate and a frequent cause of budget overruns.
Read definition →Legal & Title
Carve-Out Guaranty (Bad-Boy Carve-Outs)
A guaranty on an otherwise non-recourse loan that makes a principal personally liable only if specific 'bad acts' occur — fraud, misappropriation, voluntary bankruptcy, waste, or failure to pay taxes/insurance.
Read definition →Certificate of Occupancy (CO)
A document issued by a local building authority certifying that a structure complies with building codes and is safe and legal to occupy. Often required before a lender will fund or convert a construction or rehab loan.
Read definition →Deed of Trust
A security instrument used in many states instead of a mortgage. It involves three parties and allows faster non-judicial foreclosure through a trustee, which is why lenders favor it where available.
Read definition →Deficiency (Deficiency Judgment)
The shortfall when a foreclosure sale brings less than the loan balance owed. On a recourse loan, the lender can seek a deficiency judgment to collect the difference from the borrower personally.
Read definition →Environmental Phase I (Phase I ESA)
A Phase I Environmental Site Assessment is a non-invasive review of a property's history and current condition to identify potential contamination risks. Commonly required by lenders on commercial and certain investment properties.
Read definition →First Lien (First Position)
The senior claim against a property, repaid before all other mortgages in a foreclosure or sale. First-lien loans are the safest position and carry the lowest rates. Hard money lenders require it.
Read definition →Flood Insurance
A separate policy covering flood damage, which standard hazard insurance excludes. Federally required by lenders when a property sits in a FEMA-designated Special Flood Hazard Area.
Read definition →Force-Placed Insurance
Property insurance the lender buys on the borrower's behalf — and charges to the borrower — when the borrower's own hazard policy lapses or is missing. It protects the lender's collateral, not the borrower's interests, and is usually far more expensive.
Read definition →Lien Position (Lien Priority)
The order in which liens against a property get paid in a foreclosure or sale, generally set by recording date. First-position liens are paid before second-position liens, which drives lender risk and pricing.
Read definition →Lien Waiver
A signed document in which a contractor or supplier waives their right to file a mechanic's lien against the property, given in exchange for payment. Lenders require them on construction and rehab draws to keep title clear.
Read definition →Personal Guarantee
A borrower's personal promise to repay a loan made to their LLC or entity, putting personal assets at risk if the entity defaults. Common on investor loans even when the borrower is an LLC.
Read definition →Promissory Note
The written promise to repay a loan, stating the amount, interest rate, payment terms, and maturity. It's the debt instrument itself, paired with a mortgage or deed of trust that secures it.
Read definition →Recourse vs Non-Recourse Loan
Recourse loans let the lender pursue a borrower's personal assets beyond the collateral if a foreclosure doesn't cover the debt; non-recourse loans limit the lender to the property itself.
Read definition →Second Lien (Junior / Second Mortgage)
A subordinate loan recorded behind a first mortgage, repaid only after the first lien is satisfied in a foreclosure. Riskier and pricier than first-position debt; used for gap funding and equity access.
Read definition →SPE / LLC Borrower
A single-purpose entity (often an LLC) formed to own one property and borrow against it. Investor lenders frequently require title and the loan to be held in an LLC for liability isolation and clean underwriting.
Read definition →Springing Guaranty
A dormant personal guaranty that 'springs' into full effect only when a specific triggering event occurs — most often a voluntary bankruptcy filing or an unpermitted transfer — converting a non-recourse loan into full personal recourse.
Read definition →Survey (Property Survey)
A licensed surveyor's drawing of a property's exact boundaries, improvements, easements, and encroachments. Lenders may require one to confirm the structures sit within the lot lines and match the legal description.
Read definition →Title Commitment
A title company's promise to issue a title insurance policy, listing the property's current ownership, the requirements to clear title, and any exceptions (liens, easements, restrictions) before closing.
Read definition →Title Insurance
Insurance that protects against losses from defects in a property's title — undisclosed liens, ownership disputes, or recording errors. Lenders require a lender's policy; owners can add their own.
Read definition →Loan Costs
Closing Costs
The fees and charges paid to complete a real estate transaction — lender fees, title, escrow, recording, taxes, and prepaids. On investor loans they typically run 2–5% of the loan, on top of the down payment.
Read definition →Defeasance
A method of paying off a commercial or securitized loan early by substituting the property with a portfolio of government securities that replicates the loan's remaining payments, rather than paying cash to the lender.
Read definition →Lender Credit
Money the lender contributes toward the borrower's closing costs in exchange for a higher interest rate. The mirror image of paying discount points — you trade a higher rate for lower upfront cash.
Read definition →Lockout Period
A window early in a loan's life during which the borrower is prohibited from prepaying the loan at all — even with a penalty. Common on commercial and securitized investor loans to protect the lender's expected yield.
Read definition →Origination Fee
The lender's charge for processing and funding a loan, usually expressed as origination points (a percentage of the loan). It's the core upfront cost of getting an investor loan closed.
Read definition →Par Rate
The base interest rate a lender offers on a loan with no discount points paid and no lender credit given — the neutral rate before any buydown or credit adjusts it up or down.
Read definition →Points (Origination Points)
An upfront fee equal to a percentage of the loan amount, paid to the lender at closing. One point = 1% of the loan. Hard money loans commonly charge 1–3 points.
Read definition →Prepaid Interest (Per-Diem Interest)
Interest charged at closing for the days between funding and the first regular payment, calculated per day. A line item in closing costs that varies with your closing date.
Read definition →Prepayment Penalty
A fee charged if you pay off a loan early, common on DSCR rental loans. Often structured as a step-down (e.g., 5-4-3-2-1) over the first several years to protect the lender's expected yield.
Read definition →Rate Buydown
Paying extra money up front — usually in discount points — to lower the loan's interest rate, either for the full term (permanent buydown) or for the first few years (temporary buydown).
Read definition →Yield Maintenance
A prepayment formula that makes a lender whole for lost interest if a loan is paid off early. The borrower pays the difference between the loan's note rate and a comparable Treasury yield over the remaining term, discounted to present value.
Read definition →Loan Process
Escrow Waiver
An arrangement where the lender lets the borrower pay property taxes and insurance directly rather than collecting them monthly in an escrow account. Common on investor loans, often for a small rate or fee adjustment.
Read definition →Rate Lock
A lender's guarantee to hold a specific interest rate (and points) for a set number of days while the loan is processed, protecting the borrower from rate increases before closing.
Read definition →Term Sheet
A document summarizing a loan's proposed key terms — amount, rate, points, LTV, term, fees — before full underwriting. It signals serious lender interest but is typically non-binding and subject to conditions.
Read definition →Underwriting
The lender's process of evaluating a loan's risk before funding — verifying the borrower, property, value, and exit. Investor underwriting focuses on the asset's cash flow or value rather than personal income.
Read definition →Loan Structure
Amortization
The process of paying off a loan through regular payments that cover both interest and principal, so the balance reaches zero by the end of the term. A 30-year DSCR loan fully amortizes.
Read definition →Balloon Payment
A large lump-sum payment of the remaining loan balance due at the end of a loan's term, after smaller (often interest-only) payments. Standard on bridge and hard money loans.
Read definition →Fully-Indexed Rate
The true rate on an adjustable loan, calculated as the current index value plus the fixed margin. It's the rate you'd actually pay once any introductory or teaser rate expires.
Read definition →Index (Loan Index)
A published, market-based interest rate that an adjustable-rate or floating-rate loan is tied to. The lender adds a fixed margin to the index to set your actual rate, which moves as the index moves.
Read definition →Interest-Only Loan
A loan where payments cover only the interest for a set period, with no principal reduction. The balance stays flat until the interest-only period ends or the balloon comes due. Common on bridge and some DSCR loans.
Read definition →Margin (Loan Margin)
The fixed percentage a lender adds to the index to set an adjustable loan's rate. Unlike the index, the margin is set at closing and stays constant for the life of the loan.
Read definition →Negative Amortization
When a loan payment is smaller than the interest due, so the unpaid interest is added to the principal and the balance grows over time instead of shrinking.
Read definition →Prime Rate
The interest rate commercial banks charge their most creditworthy customers, set at roughly 3 percentage points above the federal funds rate. A common index for bank lines of credit and some bridge and construction loans.
Read definition →Recast (Loan Recast / Re-Amortization)
Re-amortizing a loan after making a large lump-sum principal payment, which lowers the monthly payment while keeping the same interest rate and remaining term. Unlike a refinance, it doesn't replace the loan.
Read definition →SOFR (Secured Overnight Financing Rate)
The benchmark interest rate that replaced LIBOR as the standard index for most adjustable-rate commercial and investor loans. Published daily by the Federal Reserve Bank of New York and based on overnight Treasury repo transactions.
Read definition →Loan Types
Asset-Based Loan
A loan underwritten primarily on the value of an asset — usually the real estate collateral or the borrower's liquid assets — rather than personal income. Hard money and DSCR loans are forms of asset-based lending.
Read definition →Blanket Loan
A single loan secured by multiple properties at once, with one payment and one set of terms. Often includes a release clause to sell individual properties. Used by investors to consolidate or scale a portfolio.
Read definition →Bridge Loan
A short-term loan that 'bridges' the gap until permanent financing or a sale. Common in investor real estate to acquire or stabilize a property fast, then refinance or sell.
Read definition →Business-Purpose Loan
A loan made for business or investment purposes rather than personal/household use. Investor loans like DSCR and hard money are business-purpose, which exempts them from most consumer-mortgage regulations.
Read definition →Cash-Out Refinance
Replacing an existing loan with a larger one and taking the difference as cash. Investors use cash-out refinances to recover capital from appreciated or rehabbed equity — the engine of the BRRRR strategy.
Read definition →Hard Money Loan
A short-term, asset-based loan secured primarily by real estate rather than the borrower's credit or income. Funded fast by private lenders for acquisitions, rehabs, and bridges.
Read definition →New Construction Loan
Short-term financing for ground-up building, releasing funds in draws as construction progresses. Sized on land cost plus build budget and capped against the completed value, then taken out by a sale or permanent loan.
Read definition →No-Doc / Low-Doc Loan
An investor loan requiring little or no personal income documentation, qualifying instead on the property, assets, or credit. Modern 'no-doc' for investors usually means DSCR or asset-based — not the unverified loans of the 2000s.
Read definition →Non-QM Loan
A mortgage that doesn't meet the Consumer Financial Protection Bureau's Qualified Mortgage standards, allowing alternative income documentation. DSCR and bank-statement loans are common non-QM products for investors and the self-employed.
Read definition →Portfolio Loan
Two related meanings: a loan a lender keeps on its own books rather than selling, allowing flexible terms; and a single loan covering multiple investment properties at once. Both serve investors banks won't.
Read definition →Private Money
Loans funded by private individuals or groups rather than institutions — friends, family, or private investors lending their own capital. Flexible and fast, with terms negotiated directly between borrower and lender.
Read definition →Rate-and-Term Refinance
Refinancing to change a loan's interest rate or term without taking significant cash out. Investors use it to lower payments or, critically, to pay off short-term hard money with permanent financing.
Read definition →Refinance Takeout (Takeout Loan)
A permanent loan that 'takes out' (pays off) a short-term construction or bridge loan once a project is complete. The takeout is the planned exit that retires hard money financing.
Read definition →Short-Term Rental (STR) Loan
A DSCR-style loan that qualifies a property on short-term rental income (Airbnb/VRBO) rather than long-term lease rent. Often underwritten on market or actual nightly revenue via AirDNA-type data.
Read definition →Returns
Strategy
1031 Exchange
A tax-deferral strategy under IRS Section 1031 that lets an investor sell one investment property and reinvest the proceeds into a 'like-kind' property, deferring capital-gains tax. Strict timelines apply.
Read definition →70% Rule
A house-flipping rule of thumb: don't pay more than 70% of a property's ARV minus repair costs. Max Offer = (ARV × 0.70) − repairs. The 30% spread covers costs and profit.
Read definition →BRRRR (Buy, Rehab, Rent, Refinance, Repeat)
A rental-building strategy: Buy a distressed property, Rehab it, Rent it, Refinance to pull capital back out, then Repeat. It recycles the same down payment across multiple properties.
Read definition →Exit Strategy
The plan for how a short-term loan will be repaid — typically a sale or a refinance. On bridge and hard money loans, a credible exit is the single most important factor, because the balloon will come due.
Read definition →Fix and Flip
Buying a distressed property below market, renovating it, and reselling it quickly for a profit. The classic active real estate strategy, typically financed with short-term hard money or fix-and-flip loans.
Read definition →Lease Option (Rent-to-Own)
A contract combining a lease with an option to buy the property later at a set price. The tenant-buyer rents now and can purchase within a set period, often with rent credits toward the purchase.
Read definition →Long-Term Rental (LTR)
A property leased to a tenant on a long-term lease (typically 12 months), generating steady monthly rent. The classic buy-and-hold asset, financed with 30-year DSCR loans and valued on stable cash flow.
Read definition →MAO (Maximum Allowable Offer)
The highest price an investor should pay for a property and still hit their profit target. MAO is usually derived from ARV minus repairs, costs, and desired profit — the discipline that protects a flip.
Read definition →Seller Financing (Owner Financing)
The seller acts as the lender, carrying a note for part or all of the price instead of the buyer getting a bank loan. Flexible terms negotiated directly; the buyer pays the seller over time, secured by the property.
Read definition →Spec Build (Speculative Construction)
Building a home 'on speculation' — without a buyer lined up — intending to sell it for a profit on completion. The new-construction analog of a flip, financed with a construction loan.
Read definition →Subject-To (Sub2)
Buying a property 'subject to' the existing mortgage staying in place — the buyer takes title and makes payments, but the loan remains in the seller's name. A creative-financing technique with due-on-sale risk.
Read definition →Transactions
Dry Close (Dry Funding)
A closing where documents are signed but loan funds are released a few days later, after a final review. Allowed in 'dry funding' states, mostly in the West, unlike same-day wet funding.
Read definition →EMD (Earnest Money Deposit)
A good-faith deposit a buyer puts down when signing a purchase contract, held in escrow and credited at closing. It signals serious intent and is at risk if the buyer defaults outside contingencies.
Read definition →Escrow
A neutral third party holding funds or documents until a transaction's conditions are met. In closings, escrow holds earnest money and loan funds; in loan servicing, an escrow account collects taxes and insurance.
Read definition →Proof of Funds (POF)
Documentation showing a buyer has the cash or financing to close a purchase — a bank statement, lender letter, or POF letter. Sellers require it before accepting cash and wholesale offers.
Read definition →Wet Funding (Wet Closing)
A closing in which loan funds must be available at the table the day documents are signed, so the transaction funds and records almost immediately. Required by law in 'wet funding' states.
Read definition →Underwriting
ARLTV (Loan-to-After-Repair-Value)
The loan amount divided by the projected after-repair value, as a percentage. ARLTV caps total exposure on a fix-and-flip loan — usually 65–75% of ARV — working alongside loan-to-cost.
Read definition →Breakeven Occupancy
The occupancy rate at which a property's rental income exactly covers its operating expenses and debt service. Below it, the property loses money; above it, it generates positive cash flow.
Read definition →Capital Expenditures (CapEx)
Large, infrequent costs to replace or improve major property components — roof, HVAC, water heater. CapEx is excluded from NOI but must be reserved for, because ignoring it overstates a rental's true return.
Read definition →Credit Score (FICO)
A numerical measure of creditworthiness (typically 300–850). It matters less on asset-based investor loans than on conventional mortgages, but still affects DSCR and hard money pricing, leverage, and minimums.
Read definition →Debt Service
The total loan payments — principal and interest — due over a period, usually annual. Debt service is what NOI must cover; it's the denominator behind coverage ratios like DSCR.
Read definition →Debt Yield
A lender's return metric: net operating income divided by the loan amount, as a percentage. Debt yield = NOI ÷ loan. It measures how quickly income could repay the loan, independent of rate or value.
Read definition →DSCR (Debt-Service-Coverage Ratio)
A ratio comparing a rental property's income to its debt payment. DSCR = gross monthly rent ÷ PITIA. A DSCR of 1.0 means the property exactly covers its mortgage payment.
Read definition →DTI (Debt-to-Income Ratio)
A borrower's monthly debt payments divided by gross monthly income, used in conventional lending. DSCR loans skip DTI entirely, qualifying on the property's income instead — a key advantage for investors.
Read definition →Economic Vacancy
The total rental income lost from all causes — physical vacancy plus concessions, non-paying tenants, below-market leases, and bad debt — expressed as a percentage of gross potential rent. It's usually higher than physical vacancy.
Read definition →Gross Potential Rent (GPR)
The total rent a property would collect if every unit were occupied at full market rent with zero vacancy or loss. It's the theoretical ceiling of rental income, before vacancy, concessions, and credit loss are subtracted.
Read definition →Lease-Up
The period during which a new, renovated, or repositioned property is rented from vacant (or low occupancy) to stabilized occupancy. Lenders treat lease-up risk carefully because income hasn't yet been proven.
Read definition →LTC (Loan-to-Cost)
The loan amount divided by the total project cost (purchase price plus rehab), as a percentage. LTC is the key leverage ratio on fix-and-flip and construction loans, used alongside ARV-LTV.
Read definition →LTV (Loan-to-Value)
The loan amount divided by the property's value, shown as a percentage. A $150,000 loan on a $200,000 property is 75% LTV. Lower LTV means more borrower equity and less lender risk.
Read definition →NOI (Net Operating Income)
A property's annual income after operating expenses but before debt service and taxes. NOI = gross income − operating expenses. It's the foundation of cap rate and income-based valuation.
Read definition →Operating Expense Ratio (OER)
The percentage of a property's effective gross income consumed by operating expenses. Expense ratio = operating expenses ÷ effective gross income. A lower ratio means more income flows to NOI and debt service.
Read definition →Operating Expenses (OpEx)
The recurring costs of running a rental property — taxes, insurance, management, maintenance, utilities, HOA. Subtracted from effective income to get NOI. Excludes debt service and capital expenditures.
Read definition →PITIA
The full monthly cost of owning a financed property: Principal, Interest, Taxes, Insurance, and Association (HOA) dues. PITIA is the denominator in the DSCR formula.
Read definition →Rent Roll
A document listing every unit in a property with its tenant, rent, lease dates, deposit, and status. It's the primary record of a property's income and a core underwriting document for income-property loans.
Read definition →Replacement Reserves
Money set aside — by the owner or required by the lender — to fund future replacement of major building components like roofs, HVAC, and appliances. Underwriters deduct a reserve allowance from income when calculating sustainable NOI.
Read definition →Reserves (Cash Reserves)
Liquid funds a lender requires you to have after closing, measured in months of the property's payment (PITIA). Reserves prove you can cover the loan through vacancies or surprises. Common on DSCR loans.
Read definition →Seasoning
The minimum length of time you must own a property (or hold funds in an account) before a lender will lend on its current appraised value or accept the funds. Critical to BRRRR refinance timing.
Read definition →Tenant Estoppel Certificate
A signed statement from a tenant confirming the key terms of their lease — rent, term, deposit, and that no defaults or side agreements exist. Lenders and buyers require them to verify a property's income before funding.
Read definition →Vacancy Rate
The percentage of time a rental property (or a market's units) sits empty and produces no rent. Investors subtract a vacancy allowance from gross rent to get effective income in their underwriting.
Read definition →Valuation
Absorption Rate
The pace at which available units or properties are leased or sold in a market over a given period. In lending it gauges how quickly a project will lease up or how fast inventory sells — a key input to lease-up and exit timing.
Read definition →Appraisal
An independent, licensed estimate of a property's value used by lenders to confirm collateral worth before funding. On rehab loans, lenders often order a subject-to (after-repair) appraisal.
Read definition →ARV (After-Repair Value)
The projected market value of a property once renovations are complete. ARV drives how much a fix-and-flip or BRRRR lender will advance on a rehab deal.
Read definition →As-Is Value
What a property is worth in its current condition, before any repairs or renovation. As-is value caps the initial advance on a hard money or fix-and-flip loan, while ARV caps total exposure.
Read definition →AVM (Automated Valuation Model)
Software that estimates a property's value instantly from public records, sales data, and statistical models. Fast and cheap, but less accurate than an appraisal — used for screening and some lending decisions.
Read definition →BPO (Broker Price Opinion)
A property value estimate prepared by a licensed real estate broker or agent, faster and cheaper than a full appraisal. Lenders use BPOs on some bridge and hard money loans to value collateral quickly.
Read definition →Cap Rate (Capitalization Rate)
A property's net operating income divided by its value or price, shown as a percentage. Cap rate = NOI ÷ value. It expresses the unleveraged annual return and is the core metric for valuing income property.
Read definition →Comps (Comparable Sales)
Recent sales of similar nearby properties used to estimate a subject property's value. Comps are the foundation of as-is value, ARV, appraisals, and an investor's purchase decision.
Read definition →Days on Market (DOM)
The number of days a property has been actively listed for sale before going under contract. DOM gauges market speed and demand — critical for sizing a flip's holding costs and confirming an exit timeline.
Read definition →Gross Rent Multiplier (GRM)
A quick valuation ratio: property price divided by annual gross rent. GRM = price ÷ gross annual rent. A lower GRM means a cheaper property relative to its rent. Used for fast screening.
Read definition →Stabilized Value
A property's value once it reaches normal, sustained occupancy and market rents — fully leased and operating steadily. Used to size permanent financing on value-add and lease-up deals.
Read definition →Wholesaling
Assignment (Contract Assignment)
Transferring the rights in a purchase contract to another buyer for a fee. The wholesaler's most common exit: assign the contract to an end buyer, who closes directly with the seller and pays an assignment fee.
Read definition →Double Close
Two separate, back-to-back closings (A-to-B then B-to-C) used by wholesalers to buy and immediately resell a property, keeping the spread private. Often funded with transactional funding.
Read definition →End Buyer
The final purchaser who actually closes on and keeps a property — the 'C' in an A-to-B-to-C wholesale deal. End buyers are typically rehabbers, landlords, or institutional investors.
Read definition →Transactional Funding
Very short-term (often same-day) capital that funds the A-to-B purchase in a back-to-back double close, repaid hours later from the B-to-C sale proceeds. Used by wholesalers.
Read definition →Wholesaling (Real Estate)
Putting a property under contract at a below-market price, then assigning or reselling that contract to an end buyer for a profit — without using significant capital or holding the property long-term.
Read definition →Know the terms — now run the numbers
Use our free DSCR calculator to see how rent, rate, and PITIA shape your loan, or get a quote on your next deal.