Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Starting Out
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 1 year ago on . Most recent reply

User Stats

69
Posts
20
Votes
Kenny Kuramoto
20
Votes |
69
Posts

Help me understand this Hard Money Term Sheet

Kenny Kuramoto
Posted

I wanted to see If i got this explanation right on this Hard Money Lender. I know people will have this question so here is a sample sheet I have. For context this my first BRRR so thats why the rates are probably high.

I was wondering a couple things

1. Estimated Cash due is what I have to put in? Is it my Down plus fees? 

2. How is my Down Calculated?  25% down of the Purchase Price?

3. They are only offering me 65% of ARV ?

Thanks everyone!

Most Popular Reply

User Stats

303
Posts
324
Votes
Replied

Hey Kenny- hope this helps!

  1. 1. Estimated Cash due is what I have to put in? Is it my Down plus fees?

Yes – it looks like they are including some fees and costs but note the asterisk which says there might be additional fees to come

     2. How is my Down Calculated? 25% down of the Purchase Price?

    This is a pretty poorly structured term sheet since this should be pretty easy to follow. It looks like they are offering a $101,500 Loan to purchase and then financing all of the renovation budget, but its not 100% obvious

    3. They are only offering me 65% of ARV ?

    Yes, that’s what it looks like. With your credit and assuming it’s a solid deal, these at first glance don’t look like great terms, you should consider shopping around

    Loading replies...